India’s tourism sector is experiencing an unprecedented boom, driven by religious, heritage, and wellness experiences that attract both domestic and international travelers. Recent reports highlight exponential growth in religious tourism, with Varanasi alone welcoming over 11 crore visitors in 2024, a figure that demonstrates the country’s unmatched spiritual magnetism. At the same time, regions such as Puducherry are making global headlines, being ranked as the second-best place in the world for tourism, according to Puducherry’s Tourism Minister, Sri K. Lakshminarayanan.
These insights were shared at the 55th Annual Convention of the Federation of Hotels and Restaurants Association of India (FHRAI), held in Bengaluru on 20 September 2025. Ministers, industry leaders, and hospitality experts gathered to discuss how India can strengthen its global position as a premier travel destination by focusing on spirituality, heritage, infrastructure, and wellness.
Religious Tourism: The Heart of India’s Travel Growth
India has always been synonymous with spirituality. The surge in religious tourism in 2024, especially in cities like Varanasi, Ayodhya, and Tirupati, underlines how the sector is emerging as a key driver of the tourism economy.
Varanasi, one of the world’s oldest living cities, attracted 11 crore visitors in a single year, showcasing its ability to draw pilgrims, seekers, and even curious Gen Z travelers. This growth highlights a shift: religious tourism is no longer confined to the elderly or spiritually inclined alone. Instead, younger generations are actively combining their spiritual journeys with adventure, culture, and leisure.
Sri Ganesh Pai, from ISKCON Bengaluru South, emphasized this trend during the convention:
“Spiritual tourism is all about inclusivity. Earlier only the aged used to visit religious places, but now even travel portals have found that 80–90% of places searched for tourism are religious sites. This shift is driven by Gen Z, who also want to combine spirituality with adventure.”
The implication is clear: India’s temples, ghats, monasteries, and dargahs are not just centers of worship—they are evolving into lifestyle travel destinations.
Puducherry: Rising as a Global Tourism Hotspot
One of the highlights of the convention was Puducherry’s growing tourism success. Tourism Minister K. Lakshminarayanan revealed that the union territory welcomed 19 lakh visitors in 2024, contributing approximately ₹25,000 crore to its economy. This achievement reflects both Puducherry’s French colonial charm and its reputation as a spiritual and leisure destination.
Lakshminarayanan further noted that Puducherry has been recognized as the second-best tourism destination in the world in a recent report, a remarkable feat for the small coastal state. He stressed that the government is investing heavily in infrastructure, roads, hospitality facilities, and heritage conservation to further enhance its appeal.
From serene beaches and Auroville’s spiritual enclave to vibrant Tamil culture and French heritage architecture, Puducherry offers a unique blend that attracts a diverse traveler base—from wellness seekers to culture enthusiasts.
Karnataka: Heritage Powerhouse with Global Potential
If Puducherry is emerging as a boutique destination, Karnataka is asserting itself as a heritage and cultural powerhouse. Dr. Rajendra, Director of Tourism, Government of Karnataka, revealed that the state houses:
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25,000+ historical and heritage sites
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4 UNESCO World Heritage sites
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800 officially notified heritage monuments
This treasure trove makes Karnataka one of the richest cultural landscapes in India. Recognizing its immense potential, the state government introduced a comprehensive Tourism Policy earlier this year, emphasizing public-private partnerships to maximize tourism-driven economic growth and employment opportunities.
With iconic sites like Hampi, Pattadakal, Mysuru Palace, and Belur-Halebidu, Karnataka has positioned itself as a destination where history meets modern hospitality.
The Wellness Tourism Wave: Expanding Horizons
Beyond heritage and spirituality, wellness tourism is fast becoming another pillar of India’s tourism strategy. At the FHRAI convention, Dr. Jazzy Nepram, Director of CHI The Spa and Health Club at Shangri-La, stressed the importance of skilling professionals to sustain the wellness sector’s growth.
She noted:
“If the wellness sector needs to be diverse, it needs to train its people and skill them. To increase revenue, property owners can collaborate with skilled wellness professionals, including independent practitioners. This partnership can uplift both revenue and the quality of spa services.”
India’s global identity as the birthplace of yoga, Ayurveda, and meditation already gives it a competitive edge in wellness tourism. However, scaling up requires systematic skill development and professional integration, ensuring that luxury resorts and boutique retreats alike can provide authentic, high-quality wellness experiences.
Gen Z: Shaping the Future of Tourism and Hospitality
One recurring theme throughout the discussions was the role of Gen Z in reshaping tourism and hospitality. Unlike earlier generations, Gen Z travelers seek experiences over possessions, preferring journeys that combine spirituality, adventure, wellness, and sustainability.
Dr. Bhupesh Kumar, Principal-cum-Secretary of the Institute of Hotel Management Catering Technology and Applied Nutrition, Ranchi, highlighted this generational shift:
“Gen Z will drive hospitality growth in the future. Employers in the tourism sector need to be polished and skilled to cater to this generation’s expectations and support long-term sectoral growth.”
For Gen Z, destinations are no longer about passive sightseeing; they are about immersive experiences—whether it’s attending an aarti at Varanasi’s ghats, participating in eco-friendly treks in Karnataka, or enjoying holistic healing in Puducherry.
The Economic Backbone: Tourism as a Growth Engine
Tourism is more than just an experience—it’s a major contributor to India’s economy. In Puducherry alone, the sector generated ₹25,000 crore in 2024, while states like Karnataka are banking on heritage tourism to create jobs and entrepreneurial opportunities.
Religious tourism, too, has massive economic implications. The flow of crores of pilgrims annually supports not just temples and shrines but also the ecosystem of local transporters, hotels, eateries, artisans, and tour operators. Similarly, wellness tourism feeds into sectors like healthcare, training institutes, organic farming, and luxury hospitality.
This multiplier effect ensures that investments in tourism pay dividends across multiple industries, making it a vital component of India’s long-term economic vision.
Challenges and the Road Ahead
While the potential is immense, experts at the FHRAI convention also acknowledged challenges that need immediate attention:
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Infrastructure bottlenecks: Roads, airports, and last-mile connectivity require urgent upgrades in many states.
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Skill gaps: From hospitality staff to wellness practitioners, trained manpower remains in short supply.
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Sustainability concerns: Over-tourism in religious and heritage sites raises questions of environmental conservation and cultural preservation.
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Inclusivity in growth: Small businesses and local artisans must be integrated into the tourism value chain to ensure balanced development.
Addressing these concerns will be crucial for India to sustain its momentum in the global tourism arena.
Conclusion: A Tourism Renaissance in the Making
The discussions at the 55th FHRAI Annual Convention underline a pivotal moment in India’s tourism journey. With religious tourism breaking records, Puducherry rising as a world-class destination, Karnataka showcasing its vast heritage, and wellness tourism expanding, the sector is poised for exponential growth.
Driven by Gen Z travelers who value spirituality, adventure, and wellness in equal measure, India is witnessing a renaissance in tourism—one that blends tradition with modernity and spirituality with leisure.
If challenges of infrastructure, skilling, and sustainability are addressed with foresight, India could not only retain but significantly strengthen its position as one of the world’s most sought-after travel destinations.
