India's tourism boom faces 11 million worker shortage by 2035: Report

India's tourism industry is projected to face a deficit of 11 million skilled workers by 2035, a CBRE report states. This shortage is fueled by a skills gap, the rise of new tourism segments, and a mismatch in job and training locations.

India’s expanding tourism industry could face a shortage of around 11 million workers by 2035, with demand for trained people already struggling to keep pace as hotels and newer tourism segments expand beyond established destinations, according to a CBRE Research report.

Skills Gap and Rising Demand

The September 2026 India tourism sector report said workforce availability was emerging as a key constraint even as domestic travel, hospitality investment and new tourism formats gain momentum. “As demand broadens across pilgrimage, wellness, MICE and sustainable travel, the availability of trained people is becoming a key constraint on growth,” the report said, adding that “the task now is to retain talent, take training closer to new supply, and build skills for emerging segments.”

The skills gap assumes significance as India’s tourism economy recovers from the pandemic and demand spreads into newer areas. Tourism’s direct and indirect contribution to GDP rose to 5.2 per cent in FY2024 from 1.5 per cent in FY2021, while direct and indirect employment increased to 84.6 million. Domestic visitor spending in FY2024 stood at USD 162.9 billion, roughly five times the USD 32.5 billion spent by international visitors.

Mismatch in Skills and Location

The issue is not only the number of workers but also the type and location of skills required. “Newer segments such as wellness, MICE, cruise and guided heritage need specialised roles that the current pipeline was not built for,” the report said.

At the same time, hospitality growth is increasingly moving beyond large established markets. CBRE said training capacity remains concentrated in established centres even as new hotel supply spreads into tier-II and tier-III locations. This creates a mismatch between where workers are trained and where new jobs are emerging.

Talent Retention and Future Steps

Retention is another challenge. “Long hours, modest pay and weak career perception move trained staff towards aviation, retail and BPO roles,” the report said.

The government has already expanded skilling programmes. CBRE noted that under Budget 2026-27, the National Council for Hotel Management and Catering Technology is proposed to be upgraded into a National Institute of Hospitality, while a pilot scheme will train 10,000 guides across 20 iconic tourist sites.

CBRE said the next step would require retaining trained workers, decentralising training into markets where new hotel supply is being added and developing specialised skills for wellness, MICE, cruise tourism and guiding. (ANI)

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