Enhancing Infrastructure to Boost Domestic Tourism in India

Picture a family from Pune planning a week in Sikkim, or a group of college friends from Hyderabad heading to Hampi. Their itinerary depends on far more than just enthusiasm. It depends on whether trains run on time, whether highways are smooth, whether budget rooms are clean, and whether a small airport sits within driving distance of the destination. Domestic tourism in India is booming, but its real engine is infrastructure. Without strong roads, reliable trains, accessible flights, and affordable places to stay, even the most beautiful destination remains out of reach for the average traveller.

Why infrastructure decides the future of domestic tourism 🔗

Domestic travel within the country has exploded in recent years. Domestic tourist visits are projected to more than double, rising from 2.5 billion in 2024 to an estimated 5.2 billion by 2030. That kind of growth puts enormous pressure on existing facilities. A growing middle class, easier digital booking, paid leave culture, and rising aspirations among smaller-town families have all combined to push more people onto the road, the rails, and the runways than ever before.

But demand alone does not guarantee a great experience. The traveller’s journey is only as smooth as the weakest link in the chain, whether that is a pothole-ridden state highway, an overcrowded railway platform, or a hotel room that costs more than a family can afford. This is why infrastructural development is not a luxury for the tourism sector. It is the foundation.

A short history of accommodation in India 🔗

Long before star-rated hotels and online aggregators existed, India had its own well-developed system of traveller accommodation. Understanding this history helps explain why our hospitality landscape looks the way it does today.

Ancient and medieval roots 🔗

In ancient times, accommodation for travellers was driven by religious duty rather than commerce. Wealthy individuals, merchant guilds, and temple trusts funded Dharamshalas, simple rest houses near pilgrimage sites that offered free or nominal lodging to weary travellers. These pilgrim rest houses were typically constructed near pilgrimage destinations, often located in remote areas, to give visitors a place to sleep for the night.

In the southern part of the country, a parallel tradition flourished in the form of Choultries. A choultry was a resting place for visitors where rooms and food were provided by a charitable institution for nominal rates, and some operated as guest houses where accommodation was completely free. Dynasties such as the Cholas formally institutionalised this practice through royal charters, donating villages and tax revenues specifically for pilgrim facilities, with structures often featuring open mandapas for assembly and enclosed rooms for rest.

Old pilgrimage roads like the historic Jagannath Sadak were dotted with such facilities. The road was well travelled, with many amenities for pilgrims and travellers, including choultries, dharamshalas, wells, tanks, culverts, bridges, temples, rest sheds, and ghats. The principle of atithi devo bhava, or “the guest is god,” shaped this entire ecosystem of giving shelter to anyone in need.

The British era and the rise of circuit houses 🔗

When the British arrived, travel patterns shifted. Most ordinary Indians still relied on dharamshalas or stayed with relatives, but a new layer of formal accommodation emerged for officials and the elite. Dak bungalows were first erected in the 1840s, serving as staging posts for the dak, the imperial mail service, and were placed about 12 to 15 miles apart along major roads, providing free accommodation for government officials and very inexpensive lodging for other travellers.

At district headquarters, larger and better-furnished circuit houses were built to host visiting judges and senior officers. Hill stations such as Shimla, Mussoorie, Darjeeling, Ooty, and Nainital became seasonal retreats for the British, and lavish hotels and resorts came up to meet that demand. Civilians, in many cases, were either not allowed in these establishments or could not afford them, leaving most domestic travellers to stay in dharamshalas or with friends and family.

Government initiatives across plan periods 🔗

After Independence, the government recognised that a vast majority of domestic travellers needed budget-friendly, dignified accommodation. Successive Five-Year Plans introduced schemes specifically aimed at this gap.

Youth hostels, Yatrikas, and Yatri Niwas 🔗

The Youth Hostel Scheme was launched to encourage young people to explore the country without worrying about expensive hotels. Managed by the Department of Youth Affairs and Sports, the scheme aims to provide affordable accommodation, particularly for young people, and is implemented in collaboration with State Governments which handle day-to-day management, with hostels strategically located near cultural landmarks and tourist destinations. Today, the network is operated through the Youth Hostels Association of India and offers dormitory and private room options at very modest rates.

To serve pilgrims and budget tourists at major religious centres, the government and various state tourism boards developed Yatrikas and Yatri Niwas. These are simple, clean lodgings located near temples, monasteries, and famous heritage sites. They typically offer dormitories or basic rooms with attached bathrooms at prices that families and pilgrims can comfortably afford. Some run on a donation basis, while others charge nominal tariffs.

Modern infrastructure schemes 🔗

The push for tourism infrastructure has expanded dramatically in recent years. The Ministry of Tourism provides financial assistance to State Governments, Union Territory Administrations, and Central Agencies under schemes such as Swadesh Darshan, the National Mission on Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD), and Assistance to Central Agencies for Tourism Infrastructure Development.

The revamped Swadesh Darshan 2.0 takes a destination-centric approach, focusing on sustainable and responsible tourism. Under the Special Assistance to States for Capital Investment initiative, the Government of India has also extended financial assistance to states for tourism projects covering components such as green mobility and signage. The PRASHAD scheme, on the other hand, concentrates on rejuvenating pilgrimage sites and enhancing heritage destinations, ensuring that places like Varanasi, Ajmer, and Kedarnath have the infrastructure to handle huge crowds.

Transportation: the backbone of domestic tourism 🔗

Accommodation only solves half the puzzle. The other half is getting people to their destinations comfortably and affordably.

Air connectivity and the UDAN revolution 🔗

For decades, air travel in the country was concentrated in metro cities and remained out of reach for most middle-class travellers. The launch of the Regional Connectivity Scheme, popularly known as UDAN (Ude Desh ka Aam Nagrik), changed that equation. The Government of India launched the UDAN scheme on October 21, 2016, with the goal of making flying affordable and accessible for the common citizen, especially in Tier-2 and Tier-3 cities.

The impact has been remarkable. The number of operational airports in the country has doubled from 74 in 2014 to 157 in 2024, with the aim of increasing this number to 350 to 400 by 2047. UDAN 3.0 specifically introduced tourism-linked routes in coordination with the Ministry of Tourism, opening up destinations like Khajuraho, Deoghar, Pasighat, and Ziro that were previously hard to reach.

Rail transport and tourist amenities 🔗

Indian Railways remains the lifeblood of domestic tourism, moving lakhs of travellers every day. Recognising this, the government has been upgrading station infrastructure to match the needs of tourists. The Ministry of Tourism is working with the Ministry of Railways to develop tourist amenities at 22 railway stations on a cost-sharing basis.

Specialised tourist trains such as the Bharat Gaurav circuits, IRCTC luxury trains, and pilgrimage-themed services have also become popular, packaging travel, food, and sightseeing into a single experience. These help travellers reach multiple destinations on a single ticket without the stress of arranging local transport at every stop.

Road transport: opportunities and challenges 🔗

For most domestic tourists, road transport is the final and often the longest leg of the journey. The Ministry of Tourism works closely with the Ministry of Road Transport and Highways and the National Highway Authority of India to improve road connectivity to tourist destinations, iconic sites, and UNESCO World Heritage sites.

Yet, the picture on the ground is uneven. State highways leading to remote tourist spots in the Himalayas, the Northeast, and parts of central India often suffer from poor maintenance, monsoon damage, and narrow stretches that slow down traffic. This has led to a clear pattern in passenger preference: travellers increasingly choose private bus operators over state road transport corporations, citing better punctuality, cleaner buses, online booking, and more comfortable seating. State transport undertakings continue to play an essential role on shorter and rural routes, but for inter-state tourist movement, private operators dominate.

Safety, signage, and the softer side of infrastructure 🔗

Hard infrastructure like roads and runways is only one part of the story. A traveller’s experience is also shaped by signage, safety, sanitation, and information. A Parliamentary Standing Committee report recommended establishing a tourism police in every tourist space as a separate wing of the police force, and asked that tourist destinations transition to renewable energy and adopt wastewater recovery and rainwater harvesting.

Multilingual signage at heritage sites, clean public toilets along highways, well-marked walking trails, and trained tourist facilitators all contribute to a more welcoming environment. The Capacity Building for Service Providers scheme and the Incredible India Tourist Facilitator Certification Programme aim to address exactly this gap, training personnel to deliver consistent service across the country.

Investment opportunities in tourism infrastructure 🔗

The scale of the opportunity is enormous. Government guidelines now prioritise the development of three-star or higher hotels in less-explored regions, alongside large infrastructure projects like cable cars and exhibition centres, classifying these as priority areas to attract private investment. This opens doors for entrepreneurs, hospitality chains, and even small homestay operators to participate in the growth story.

Tribal homestays, eco-resorts, wellness retreats, adventure tourism camps, and cruise terminals all represent new categories where private capital can blend with government support. The Ministry of Tourism has even issued guidelines for developing tribal homestays under the Swadesh Darshan Scheme, offering financial support to tribal households for renovation and new room construction, creating both tourism infrastructure and rural livelihoods at the same time.

Where the gaps still lie 🔗

Despite the progress, several challenges remain. Many small heritage towns lack quality budget hotels. Hill destinations face seasonal overcrowding that strains water, sanitation, and parking. Last-mile connectivity from airports and railway stations to tourist sites is often poor. Wayside amenities such as clean toilets, food courts, and rest stops on highways are still underdeveloped in many regions. And digital infrastructure, including reliable mobile networks and online booking systems for state-run accommodations, has not caught up uniformly.

Closing these gaps will require sustained investment, better coordination between central, state, and local bodies, and active participation from the private sector. The good news is that the policy direction is clear and the demand is strong. The next decade will likely see the country’s tourism infrastructure transform faster than at any point in its history.

What do you think? 🔗

What do you think? If you had to pick one infrastructure gap that has affected your own travel experience the most, which would it be: accommodation, road conditions, air connectivity, or something else? And how do you think the balance between government schemes and private investment should be struck to make domestic tourism more inclusive for every kind of traveller?

References

1. https://www.investindia.gov.in/sector/tourism-hospitality
2. https://en.wikipedia.org/wiki/Dharamshala_(type_of_building)
3. https://etc.usf.edu/clipart/58900/58972/58972_pillar_trima.htm
4. http://rainbowstampclub.blogspot.com/2011/02/special-cover-on-jagannath-sadak-sagda.html
5. https://en.wikipedia.org/wiki/Dak_bungalow
6. https://www.egovtschemes.com/youth-hostel-scheme-affordable-travel-cultural-exchange-for-all-ages/
7. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2102824
8. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2157556
9. https://ddnews.gov.in/en/udan-scheme-transforming-regional-air-connectivity-in-india/
10. https://www.nextias.com/ca/current-affairs/21-10-2024/8-years-of-regional-connectivity-scheme-rcs-udan
11. https://ddnews.gov.in/en/government-of-india-sanctions-rs-3295-76-crore-for-40-tourism-projects-enhances-infrastructure-to-position-india-as-a-global-tourist-hub/
12. https://prsindia.org/policy/report-summaries/development-of-tourism-infrastructure
13. https://www.travelandtourworld.com/news/article/india-enhances-tourism-infrastructure-with-key-initiatives-to-boost-global-appeal/