New Delhi, Apr 16 (TNT): The PHD Chamber of Commerce and Industry on Thursday said the ongoing West Asia conflict has significantly disrupted India’s aviation, tourism, and hospitality sectors, leading to an estimated net loss of ₹18,000 crore for the industry.
According to a PHDCCI report titled *“Impact of the West Asia Conflict on India’s Tourism, Aviation & Hospitality Sectors”*, inbound tourist traffic has declined by 15–20%, while aviation operations have been severely affected due to flight cancellations, airspace restrictions, and rerouting of international flights.
The report noted that airlines are facing increased flying times by 2–4 hours on key international routes, resulting in higher fuel consumption and operating costs.
With aviation turbine fuel accounting for 35–40% of operating expenses, profitability has come under pressure, the report stated..
Disruptions in Middle East air corridors among the busiest global transit routes have also reduced connectivity efficiency and pushed up airfares, it said..
Inbound tourism has dropped sharply, particularly in leisure travel, as global travellers adopt a cautious approach amid geopolitical uncertainty, the report revealed.
Outbound travel trends are also shifting, with Indian travellers preferring short-haul destinations such as Thailand, Singapore, and Vietnam, while long-haul travel has moderated.
While domestic demand continues to support the hospitality sector, rising energy costs and fluctuating international demand are squeezing margins, especially in premium segments.
The restaurant sector is witnessing input cost inflation of 10–15%, with premium dining impacted by reduced foreign tourist footfall. However, domestic demand and food delivery accounting for 20–30% of revenues are providing some stability, the report said.
Despite global disruptions, domestic tourism remains a key growth driver, supported by trends such as staycations, experiential travel, and “revenge travel.”
The report noted that India’s tourism and hospitality sector contributes nearly 8% to GDP and supports over 40 million jobs, underlining its economic significance.
PHDCCI recommended diversifying air routes, enhancing bilateral agreements, rationalising taxes on aviation fuel and hospitality, and improving access to credit for MSMEs.
It also called for strengthening infrastructure, promoting domestic tourism circuits, and simplifying visa and travel processes to offset the decline in international travel.
The report concluded that while the conflict poses short-term challenges, it also offers an opportunity to build a more resilient and diversified tourism ecosystem in India.
TNT TS
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