The Ministry of Tourism on Tuesday partnered with Google India to strengthen the digital promotion of Indian tourism destinations using AI and data-driven insights, even as a new NITI Aayog report warned that attracting more travellers alone will not be enough unless India rapidly expands tourism infrastructure and eases regulations for investors.
The ministry signed a memorandum of understanding (MoU) with Google India to leverage digital technologies, AI, travel trends and consumer insights to promote Indian destinations among domestic and international travellers. The collaboration will also include capacity-building programmes for ministry officials on digital marketing, content creation and AI.
Harnessing AI
“Digital technologies have the potential to create immersive experiences that can showcase the glory and grandeur of India’s cultural sites to audiences across the world. By harnessing cutting-edge digital technologies, we can transform the way travellers discover, experience and engage with India’s rich cultural and natural heritage,” Tourism Minister Gajendra Singh Shekhawat said.
He added that the partnership would strengthen India’s global tourism presence, improve digital outreach and position the country as a “modern, accessible and globally competitive tourism destination.”
Supply Bottleneck
The announcement coincided with the release of NITI Aayog’s report, Unlocking Growth in Tourism and Hospitality Sector, which argues that while technology can boost tourism demand, India’s larger challenge lies in creating adequate tourism supply.
The report notes that India recorded 2.9 billion domestic tourist visits in 2024, but had only around 2 lakh branded hotel rooms, accounting for less than 8% of the country’s estimated 2.48 million lodging rooms. Even with another one lakh branded rooms expected by 2030, hotel projects in India take 36-48 months to become operational, compared with 12-18 months in competing ASEAN countries.
It says the mismatch between rising demand and limited supply has contributed to high room tariffs and constrained India’s ability to attract and retain more visitors.
“The constraint, therefore, lies not in tourism assets or underlying demand, but in the enabling conditions required to translate these into consistent, competitive and high-value tourism outcomes,” the report says.
The report recommends reducing regulatory complexity, shortening project approval timelines and improving ease of doing business, saying these reforms are essential if India is to achieve its long-term ambition of becoming a $3-trillion tourism economy with 100 million inbound tourists by 2047.