India Tourism Expands Beyond Leisure with Expressway Corridors
India’s tourism sector is experiencing a dual transformation driven by improved connectivity and expanding demand beyond traditional leisure and heritage travel, according to a new report by CBRE South Asia Pvt. Ltd. Titled “Reimagining Indian Tourism: Unlocking the Next Wave of Growth,” the report was released at the ASSOCHAM National Tourism Conclave in New Delhi on Tuesday.
Expressways as Tourism Corridors
The findings highlight how India’s expressway network is functioning as tourism corridors, linking multiple destinations into curated travel circuits. The Delhi-Mumbai Expressway connects Jaipur, Ranthambore, Sariska and Ahmedabad along a heritage and wildlife corridor. Similarly, the Samruddhi Mahamarg links Shirdi, Nashik, Trimbakeshwar and the Ajanta and Ellora caves, while the Bundelkhand Expressway unites Khajuraho, Orchha, Chitrakoot and Jhansi into one route.
Upcoming corridors like the Char Dham Mahamarg, Shaktipeeth Expressway and Somnath-Dwarka Expressway will further enable multi-destination itineraries, the study indicates. Rail and alternative transport modes are accelerating this shift. Dedicated tourism circuits, luxury heritage journeys and panoramic coaches have added a distinct tourism dimension to rail travel. High-speed rail growth has concentrated along pilgrimage corridors.
Improved access to Kashmir and the Northeast is opening leisure and cultural markets previously constrained by travel time, it notes. Ropeways and river cruise circuits are emerging as mobility options in hill, riverine and island destinations where conventional infrastructure is limited.
Diversification of Tourism Demand Segments
The findings further emphasize that demand has broadened into segments with materially different real estate requirements. Spiritual travel is generating demand across hospitality, transport and retail around pilgrimage centres, with premiumisation creating scope for experiential and higher-value stays. MICE and destination weddings are driving demand for convention and event infrastructure in emerging cities.
Wellness and medical travel are supporting hospital-adjacent and retreat formats, while cruise tourism is spurring hospitality, retail and F&B development around port terminals. Rural tourism is growing largely through existing housing stock rather than new construction, creating a low-capital but fragmented market. Wildlife lodges, constrained by regulation near reserves, are emerging as a potentially high-yield niche as branded operators enter destinations such as Ranthambore and Satpura.
CBRE’s hospitality data indicates this broader demand base is translating into stronger hotel performance. Occupancy across India’s organised hotel sector rose to 64.1% in 2025 from 42.0% in 2021, with Average Daily Rate (ADR) growth lifting Revenue Per Available Room (RevPAR) above pre-pandemic levels. Leisure markets are recording strong occupancy alongside gateway metros, with Goa at 75-80% and Jaipur at 62-67%, while Bengaluru led RevPAR growth at 20-25% year-on-year.
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Economy, Upper Midscale and Midscale hotels account for nearly 60% of branded room stock, reflecting a diversified supply base catering to a broad spectrum of travellers. In Uttar Pradesh, inventory has grown 18% since 2021, with the midscale share rising from 15% to 19%.
Government and Industry Perspectives
Key government officials highlighted the report’s findings during its release. Minister Gajendra Singh Shekhawat stressed that tourism must shift focus from merely increasing visitor numbers to developing new destinations and enhancing experience quality. He emphasized technology’s central role in improving discovery, parking, and visitor services across the travel chain. The Minister also noted that realizing the next growth phase demands substantial private-sector investment and collaboration to strengthen the tourism ecosystem.
Anshuman Magazine, CBRE’s regional CEO, observed that improved infrastructure has made previously inaccessible destinations reachable. He pointed out the greater challenge lies in developing adequate accommodation, skilled personnel, and appropriate assets at each destination to meet specific traveller needs.
ASSOCHAM President Nirmal K. Minda described the sector’s evolution as a defining moment for India’s economic strategy. He positioned tourism as a potential driver of employment, investment, and regional development, linking its growth directly to the Viksit Bharat 2047 vision.
Strategic Pillars for Global Competitiveness
The ASSOCHAM-CBRE report identifies five strategic pillars essential for building a globally competitive tourism ecosystem. These include Make in India manufacturing for tourism goods, streamlined Ease of Doing Business procedures, expansion of Micro, Small and Medium Enterprises, development of the Digital Economy to enhance traveller experiences, and prioritizing Sustainability in destination management. These elements form the foundation for achieving a targeted $1 trillion tourism economy.
The findings emphasize that realizing this potential requires translating identified opportunities into concrete policy actions and investment roadmaps through stronger public-private partnerships. The framework aims to position Indian tourism within global markets while ensuring inclusive and sustainable growth across communities and regions.
