New Delhi, September 17, 2026: High hotel room rates are emerging as one of the major challenges affecting India's competitiveness in the international tourism market, according to Suman Billa, Additional Secretary and Director General of Tourism, Ministry of Tourism.

Speaking during a panel discussion at the 41st IATO Annual Convention in Visakhapatnam, Billa said pricing remains a significant disadvantage for India when compared with competing destinations. He noted that India's accommodation prices are relatively high against benchmark destinations.

“One of the biggest things that works against India is the price.”

Billa's comments highlight the importance of maintaining a balance between accommodation costs, visitor experience and destination value as India seeks to increase international tourist arrivals.

Hotel Pricing and India's International Tourism Market

India offers a wide range of tourism experiences, from beaches and backwaters to wildlife, heritage, Ayurveda and wellness. However, relatively high accommodation costs can influence travellers when they compare India with other international destinations.

For Kerala, the issue is particularly relevant because the state competes with destinations in Asia and the Indian Ocean region for international leisure, wellness and experiential travellers.

Hotels and resorts form a major component of the overall cost of a holiday. Competitive room rates, combined with quality service and distinctive experiences, can therefore play an important role in attracting price-sensitive international travellers.

The discussion at the IATO convention also comes at a time when India's domestic tourism market remains strong, while the industry is looking to increase the country's share of international tourism. 

Importance for Kerala Tourism

The pricing issue has particular relevance for Kerala, where tourism businesses include hotels, resorts, homestays, serviced villas, farm stays, houseboats and smaller accommodation providers.

Strengthening smaller tourism enterprises and expanding affordable and mid-market accommodation could provide visitors with a wider range of choices. At the same time, premium properties can continue to target luxury and high-value travellers by offering differentiated experiences.

For Kerala, the challenge is therefore not simply reducing room rates but ensuring that price is matched by the quality and uniqueness of the overall visitor experience.

Technology, Investment and Policy in Focus

The broader tourism industry is also increasingly focusing on technology, investment and policy support.

The upcoming ASSOCHAM National Tourism Conclave, scheduled for September 30 in New Delhi, will focus on the theme “Tourism as an Economic Engine: Technology, Policy, Investment & Global Partnerships.” The event will bring together government representatives, tourism boards, hospitality companies, travel-tech firms, investors and other industry stakeholders. 

Discussions are expected to cover areas including technology and AI, investment in tourism infrastructure, responsible tourism, ease of doing business and the development of premium and experiential tourism products. 

These themes are also increasingly relevant to Kerala as the state develops its tourism infrastructure and seeks to attract visitors from new international markets.

IATO Hall of Fame Honour for KB Kachru

The 41st IATO Annual Convention also saw KB Kachru, President of the Hotel Association of India and Chairman – South Asia of Radisson Hotel Group, receive the IATO Hall of Fame Award 2026.

The award was presented by Union Minister of Civil Aviation K. Rammohan Naidu in recognition of Kachru's contribution to India's tourism and hospitality sector. 

New Delhi–Guangzhou Connectivity to Benefit Travellers

Meanwhile, China Southern Airlines is set to resume daily direct flights between New Delhi and Guangzhou from September 21, 2026, restoring a direct air link between the two cities after a six-year interruption.

The airline also provides free transit accommodation for eligible passengers at Guangzhou and other qualifying hubs, subject to its conditions. China Southern's official information says eligible passengers can receive a free hotel stay, breakfast and airport-hotel transportation under its transit accommodation programme. 

The renewed connectivity could provide additional options for Indian travellers heading to China and for passengers using Guangzhou as a transit point to other international destinations.

A Wider Lesson for Kerala's Tourism Industry

The developments discussed at the IATO convention and upcoming industry events point to several issues relevant to Kerala's tourism sector.

Competitive pricing will remain important, particularly for international visitors comparing destinations across Asia. At the same time, Kerala can strengthen its position by offering distinctive experiences through Ayurveda and wellness, backwaters, houseboats, responsible tourism, rural tourism, cuisine, culture and nature-based travel.

The expansion of homestays, serviced villas, farm stays and community-based tourism can also provide travellers with more accommodation choices while spreading tourism income to smaller businesses and local communities.

As India's tourism industry looks towards its next phase of growth, the balance between price, quality, technology, investment and visitor experience is likely to remain central to the country's international tourism competitiveness.