Factors driving demand: ICRA said that sustained domestic leisure travel, meetings, incentives, conferences, and exhibitions (MICE), weddings and business travel are the factors that would drive demand in the next financial year. Spiritual tourism and tier 2 cities will also contribute to the industry. The primary driver is expected to be domestic tourism, as seen in fiscal 2024.
Demand outlook: In the medium term, ICRA has maintained that the demand outlook remains healthy. This is supported by improved infrastructure and air connectivity as well as favorable demographics.