The World's Largest Hotel Company Says India's Tourism Problem Isn't Too Many Visitors

While European capitals argue about crowd caps and tourist taxes, Marriott International chief executive Anthony Capuano used a World Leaders Forum appearance in India last week to make the opposite argument about the country: it does not have an overtourism problem, it has an awareness problem.

The numbers back him up. Foreign tourist arrivals fell 9.4% in 2025 to roughly 9 million, leaving India below its pre-pandemic level and accounting for just 1.4% of global arrivals. Overseas tourism marketing spending has been cut by more than 97%. Roughly 70% of Marriott's demand in India today is domestic.

Capuano's point was that most international travelers can name two or three Indian cities and stop there. "You'd be hard-pressed to find another country in the world that has the richness of destinations, the richness of history, the richness of culture, the richness of cuisine," he said, adding that some of it remains "a well-kept secret." His prescription is public-private partnership: "India has to tell its story better."

The luxury angle

For the top of the market, the gap is stark. India's palace hotels are among the most distinctive properties anywhere, and several of them sit in cities most inbound travelers never reach. Udaipur alone holds Taj Lake Palace, The Oberoi Udaivilas and Raffles Udaipur. Jaipur has Rambagh Palace and The Oberoi Rajvilas. Neither city registers on most first-time itineraries.

Where the money is going anyway

Marriott is not waiting for the inbound picture to improve. It expects India to become its third-largest global market, wants a presence in 100 Indian cities by the end of next year and 50,000 rooms by 2030, with 2025 revenue in the country crossing $1.5 billion. Much of that growth is in midscale and Tier-2 and Tier-3 markets rather than luxury.

Domestic demand is growing 8 to 9% a year against premium supply growth of 5 to 6%, which is a comfortable position for anyone already holding rooms. Hilton, IHG, Accor and domestic operators including IHCL, ITC, Oberoi and Lemon Tree are all expanding into the same gap.