Investments are made to sharpen Rajasthan’s various tourism niches, from luxury travel and wedding tourism to spiritual tourism
Rajasthan has long been one of India’s most sought-after tourist destinations, attracting both domestic and international visitors. Home to the iconic Pink City, Jaipur, which forms part of the renowned Golden Triangle tourist circuit along with Delhi and Agra, the state continues to enhance its tourism sector through infrastructure developments and progressive policies.
In a move to accelerate post-pandemic recovery, Rajasthan became the first Indian state to grant the tourism and hospitality sectors ‘industry’ status in 2022. Holding this status grants preferential Urban Development tax rates on industrial rates, which are 80 per cent lower than commercial rates, thereby supporting business growth and maintaining Rajasthan’s status as a premier tourist destination.
To further strengthen the tourism industry, Rajasthan recently unveiled the Rajasthan Tourism Unit Policy – 2024, which introduces a host of investor-friendly measures. Under this policy, new tourism units approved by the Department of Tourism will receive numerous benefits including exemption from conversion and development charges and expedited approval for land conversion and building plans.
“Rajasthan continues to remain a key tourist attraction in India. The state has been introducing investor-friendly policies to keep up with the infrastructure required for growing tourism demand. The state’s introduction of single-window clearance for all new tourism units will spur investment in the sector, allowing smooth business operations,” said Subhash Goyal, chairman of STIC Travel & Air Charter Group.
The surge in tourist numbers has helped in the growth of Rajasthan’s hospitality sector. According to the Hotelivate 2024 Indian Hospitality Trends & Opportunities report, Jaipur’s hospitality market expanded by 18.1 per cent, adding 1,132 rooms to its inventory in 2023/2024. The demand was largely driven by leisure, social and business events.
Udaipur, known for its opulent heritage hotels and luxury resorts, emerged as a leader in the premium hospitality space for the same period, recording an Average Daily Rate (ADR) of 15,093 Indian rupees (US$173.88).
“Last year was a remarkable period of growth for our property in Rajasthan, driven by a significant uptick in both domestic and international demand. The domestic market emerged as a cornerstone of our business, now accounting for 60 per cent of our overall business,” said Somesh Agarwal, chairman and managing director, Radisson Blu Palace Resort, Udaipur.
Looking ahead, industry experts predict continued growth in Rajasthan’s luxury tourism segment.
“In the luxury segment, we expect occupancy rates to inch closer to 70 per cent, reflecting sustained demand for high-end accommodation. We are also projecting a five per cent increase in average room rates (ARRs), signifying a favourable pricing environment and enhanced revenue potential,” added Agarwal.
Rajasthan is home to over 75 per cent of India’s heritage properties, making it a preferred location for destination weddings. More than 120 heritage properties across the state host weddings.
The state hosted India’s first Wed in India Expo in Jaipur last year, delivered in collaboration with the Ministry of Tourism. It attracted 16 international and 50 domestic wedding planners, strengthening Rajasthan’s reputation as a global wedding destination.
“Destination weddings have become a major growth driver for Rajasthan’s tourism industry. Events like the Wed in India Expo provide an excellent platform to showcase Rajasthan’s rich heritage and luxurious venues to a global audience,” said Ravi Jain, secretary-tourism, government of Rajasthan.
Rajasthan has also positioned itself as a key player in India’s inbound tourism market by hosting the Great Indian Travel Bazaar (GITB) for the past 13 years. The event attracts international travel operators and stakeholders, boosting the state’s global appeal.
GITB 2024 saw participation from 250 foreign tour operators from 52 countries.
On the other hand, Rajasthan’s diverse landscape, which includes lush forests and wildlife sanctuaries like Ranthambore National Park, remains a prime attraction for both domestic and international travellers.
“In 2025, we expect 68 to 72 per cent average occupancy with a 10 to 15 per cent growth in ARRs, driven by 70 per cent domestic and 30 per cent international tourists demand. Leisure travellers remain our key segment with growing interest in business events, product launches, and intimate weddings. Experiential stays, including curated safaris and unique jungle retreat experiences remain key attractions,” said Gaurav Mudgal, managing partner and vice president commercials, Aamaghati Wildlife Resort, Ranthambore.
Spiritual tourism is another significant segment Rajasthan is looking to enhance. In collaboration with the central government, the state is working on developing Pushkar – one of India’s most important pilgrimage sites along the lines of Kashi Vishwanath and Ayodhya. The plan includes the beautification of Pushkar Lake and its surrounding ghats (bathing places), aiming to make the site more attractive to pilgrims and tourists alike.
The annual Pushkar Fair, one of Rajasthan’s biggest cultural events, saw record-breaking footfall in 2024, with over 600,000 Indian visitors and 20,000 foreign tourists attending the seven-day festival.
According to the Department of Tourism, Rajasthan, the state received around 1.7 million foreign tourists in 2023 compared to 396,684 in 2022. In the same period, the state welcomed around 179.05 million domestic tourists, up from 108.33 million in 2022.
