Mahindra Holidays & Resorts India has reportedly planned to expand beyond vacation ownership to capitalise on the growing domestic tourism market.
The move comes as India’s travel and tourism market is set to grow 15.67% annually, reaching $54.34 billion by 2030.
Mahindra Group is considering to expand its presence in the travel and tourism industry. The group’s hospitality arm, Mahindra Holidays & Resorts India, is planning to expand its business beyond vacation ownership to cash in on the domestic tourism boom, PTI reported.
“Our goal is very clear, to be the number one leisure hospitality player in India,” CEO and MD, Anish Shah told PTI. “So my response to that is that you’re right. It should be much more. It is a good target right now, as a business looks at various options to go beyond vacation ownership...,” Shah added.
The development comes at a time when India’s travel and tourism market is projected to grow at 15.67% and touch $54.34bn by 2030.
Mahindra Group’s hospitality arm has planned to add over 1,000 rooms in the financial year 2026 as a part of its bigger goal to increase its room count to 10,000 by FY30.
The Anand Mahindra-led group had ventured into the sector in 1996 but has stayed away from conventional hotels and limited itself to vacation ownership only. The CEO, however, hinted that approach might change going forward, taking growth in the Indian tourism sector.
“That has been the model of the past but the business is looking at various options now, and is exploring, what are models that make sense, and how can we expand beyond just vacation ownership that we are doing [now],” Shah reportedly said.
Giants Betting on India’s Tourism Boom
Apart from the Mahindra Group, other giants in the industry are also betting big on the sector’s growth projection. ITC Hotels, which recently demerged from consumer goods giants ITC, has set out a target of 58 hotels to cross its goal of 220 hotels by 2030.
“India’s hospitality sector has huge headroom to grow with only 0.3 rooms per thousand population, compared to the world average of 2.2 rooms. The country’s tourism and hospitality sector holds immense potential, given its rich cultural heritage, diverse landscapes, and expanding infrastructure,” ITC chairman Sanjiv Puri said in the recent AGM.
According to the World Travel and Tourism Council projection, India’s tourism sector’s contribution to GDP was $250.2bn in the calendar year 2024 and could potentially increase to $511.5bn by CY34.
Taking into account the growth projection, the Narendra Modi-led government, in its 2025-26 budget, announced a fund allocation of Rs 2541.06 crore to enhance infrastructure, skill development, and travel facilitation.
