NITI Aayog has recommended major reforms to India's tourism regulations, including introducing multiple-entry Visa-on-Arrival (VoA) facilities for travellers from selected countries, simplifying hotel approvals, easing licensing requirements, and reducing regulatory hurdles to attract more tourists and investment.
The proposals are outlined in its report, Unlocking Growth in Tourism and Hospitality Sector, prepared in consultation with the Ministry of Tourism and industry stakeholders. The report argues that India's tourism sector is being held back more by regulatory challenges than by a lack of demand.
India welcomed around 20.6 million international visitors, including NRIs, in 2024, with foreign tourist arrivals reaching 9.95 million. Tourism contributed ₹15.73 lakh crore, or 5.22% of GDP, in FY24 and supported an estimated 84.6 million jobs.
Simpler Visa System
One of the key recommendations is a 90-day multiple-entry Visa-on-Arrival for travellers from selected countries. Eligible visitors would be able to obtain visas at designated airports and seaports without prior application, making travel to India more convenient.
NITI Aayog has also suggested streamlining India's visa framework by consolidating multiple e-visa categories into broader groups covering tourism, business, medical visits, student travel, and attendant visas.
To encourage repeat visits, the report recommends allowing multiple entries during a visa's validity period, offering faster processing for frequent travellers, integrating visa services with tourism platforms, and exploring a Tourist Refund Scheme (TRS) that would enable foreign visitors to claim GST refunds on purchases made in India.
Easier Approvals for Hotels
The report also proposes several measures to simplify business operations in the hospitality sector. These include eliminating project-stage approvals by the Ministry of Tourism for hotels, introducing a single health trade licence, and allowing a single liquor licence for hotels operating multiple restaurants and service areas within the same property.
Other suggestions include removing the requirement for an Eating House Licence, extending the validity of liquor licences and FSSAI registrations, and promoting digital approvals through single-window clearance systems.
According to the report, hotel projects in India typically take 36–48 months to move from approval to operation, compared to 12–18 months in many ASEAN countries. These delays increase costs and slow down the expansion of tourism infrastructure.
India currently has around 2 lakh branded hotel rooms, accounting for less than 8% of the country's estimated lodging capacity despite strong demand from domestic and international travellers.
NITI Aayog said that simplifying regulations, improving ease of doing business, and making travel procedures more visitor-friendly are essential for India to realise its goal of becoming a major global tourism destination.
