The 55th Annual Convention of the Federation of Hotels & Restaurants Associations of India (FHRAI) took place in Bengaluru during 18-20 September 2025, with the theme FutureScape 2047: Redefining Hospitality for a New India. The event put emphasis on creating a roadmap for the next two decades of India’s hospitality & tourism sector, with discussions on innovation, sustainability, and growth, and included high-profile government dignitaries at the inauguration.
Siddaramaiah, chief minister, Karnataka, who inaugurated the three-day convention, affirmed that Karnataka is all geared up to position itself as India’s next major tourism hub, with the unveiling of a new Coastal Tourism Policy and an upcoming ‘homestay policy’. He stated that the government is committed to transforming Karnataka into a global tourism destination and announced that 50,000 youth will be trained by 2026 to serve as brand ambassadors, boosting the state’s image worldwide. Already, 1,000 youth have been trained as tourist guides, creating both employment and quality service standards. Karnataka has set a goal of creating 150,000 new jobs and attracting R8,000 crore in investments under its new Karnataka Tourism Policy 2024-29.
The convention was organised at a time when domestic tourist arrivals in Karnataka surged to 30.46 crore in 2024, marking a 56 per cent increase over the previous year. The sector contributed nearly Rs25,000 crore to the state’s economy, supporting over 400,000 direct and indirect jobs.
Highlighting the state government’s initiatives, the CM stated that Rs200 crore has been earmarked for coastal tourism development. With the state having 320 km of pristine coastline, the new Coastal Tourism Policy aims to develop beaches, water sports, resorts, and eco-tourism initiatives. He also pointed to Bengaluru’s growing role as a premier MICE (meetings, incentives, conferences, exhibitions) destination, accounting for 15 per cent of India’s share in this segment.
D.K. Shivakumar, deputy chief minister, Karnataka, while speaking at the FHRAI event, highlighted various achievements made by the state in the tourism landscape. He urged the FRHAI leadership to come out with suggestions that can help the state in promoting the tourism sector of the state.
In the top league
India’s hospitality sector will grow at a rate of 20 per cent in the coming years, driven by rising domestic and international travel, informed Gajendra Singh Shekhawat, Union minister for tourism, who also addressed the convention. The Central government is committed to placing India among the world’s top five tourism economies, he assured.
“I can say with pride that India is amongst the select few countries that have surpassed the volume of inbound tourists seen pre-pandemic,” stated Shekhawat. “A new national tourism policy is on the anvil, aligned with India’s ongoing economic transformation into a $4 trillion economy. States and Union Territories have submitted proposals, and stakeholder consultations will shape the final framework. Incentives to promote sustainable and responsible tourism form a key part of the policy under consideration. The strength of our middle-income group is growing, as is their disposable income. This is a great boon for our tourism industry”.
A new national tourism policy is on the anvil, aligned with India’s ongoing economic transformation into a $4 trillion economy
India is set to implement a new national tourism policy with a focus on employment-led growth, developing 50 new tourist destinations into world-class hubs, and enhancing infrastructure and skilled manpower in the tourism sector. This initiative, detailed in the Union Budget 2025-26, includes significant funding for schemes like Swadesh Darshan and PRASHAD and promotes a ‘challenge-mode’ approach, where states propose projects for funding.
The FHRAI convention attracted various stakeholders, including policymakers, to deliberate on various issues that the industry is currently facing. The theme envisions the transformation of India’s hospitality industry as the nation approaches its centenary of independence. It underscores the need to innovate, adapt and lead in an era defined by technological advancement, sustainable practices and evolving guest expectations. It also calls upon industry stakeholders to reimagine hospitality through the lens of smart infrastructure, digital integration, cultural preservation and inclusive growth.
Meanwhile, India’s hospitality sector recorded a 12.9 per cent y-o-y rise in revenue per available room (RevPAR) in Q2 2025, with sequential growth of 10 per cent, says JLL Report. Bengaluru led the performance with a 29.4 per cent RevPAR surge, aided by rate optimisation.
Hyderabad saw an 18.6 per cent rise in the average daily rate. Chennai, Delhi, and Mumbai showed steady growth. “The hospitality industry in Chennai witnessed strong growth in Q2 2025, with 17.1 per cent year-on-year increase in Revenue per Room, according to real estate consulting firm JLL.