India's tourism and hospitality sector faces external shocks due to West Asia conflict; aviation sector most impacted: PHDCCI

India's tourism and hospitality sector is facing external shocks due to the West Asia conflict. The aviation sector is the most impacted, with flight cancellations, airspace restrictions, and rerouting of international flights, resulting in increased fuel consumption and operating costs. Inbound tourist traffic has declined by 15-20%, particularly in leisure travel, while outbound travel has shifted to short-haul destinations. The hospitality sector remains resilient due to strong domestic travel demand, but faces margin pressures due to rising energy costs. The government and industry stakeholders need to work together to build a more resilient tourism ecosystem. Policy recommendations include diversifying international air routes, enhancing bilateral air service agreements, and rationalizing taxation to reduce cost pressures.