Mumbai | The Hotel Association of India (HAI) on Tuesday said Prime Minister Narendra Modi's call for citizens to travel within the country instead of opting for overseas destinations will boost domestic tourism and strengthen India's position as a preferred global destination.

At a time when geopolitical instability and regional conflicts influence global travel patterns, India stands out as a stable, democratic, culturally rich and high-potential destination, HAI said in a statement.

This changing global environment presents a strategic opportunity for India to attract a larger share of international travellers seeking safer, experience-led and value-driven destinations. With the right policy support, infrastructure expansion and global positioning, India can substantially increase foreign exchange earnings through tourism, the hospitality industry body said.

"Inbound tourism will be one of the defining growth engines for India's hospitality sector in the years ahead. As India attracts more international travellers across leisure, business, medical, spiritual and cultural segments, the sector must respond with scale, quality and world-class infrastructure. This is not merely about meeting demand, it is about building a globally competitive and sustainable tourism ecosystem," said K B Kachru, President, Hotel Association of India and Chairman - South Asia, Radisson Hotel Group.

The current geopolitical environment is creating a unique opportunity for the country as global travellers increasingly look for stable, trusted and culturally immersive destinations, and India is exceptionally well positioned to emerge as a preferred tourism hub, according to Kachru.

"This can significantly enhance foreign exchange earnings while accelerating global investor interest in India's hospitality and tourism infrastructure," Kachru said.

Foreign investment will be critical to accelerating hospitality growth by providing the long-term capital, global expertise, technology and market access needed to develop hotels, resorts, convention centres and allied infrastructure, stated Kachru.

"Foreign investment in hospitality is a strategic economic lever for India, with benefits extending far beyond the sector itself. Every new hotel project unlocks investment in construction, logistics, talent, technology and supply chains, while creating durable employment across both urban and rural India," he added.

A focused and sustained push on inbound tourism has the potential to increase India's tourism-related foreign exchange earnings by an additional 25-30 per cent over the coming years, he said.

"Beyond foreign exchange, a thriving inbound tourism sector sends a powerful signal to global investors," Kachru said.

The apex industry body further stated that investing in infrastructure and easing regulations will be critical to unlocking hospitality growth.

Simpler approvals, standardised clearances, predictable timelines and targeted incentives can accelerate investment in hotels, serviced apartments and resorts, and expand accommodation capacity to support tourism-led growth, added HAI