India’s hospitality sector has staged a steady and confident comeback after the pandemic, powered by record domestic travel, improving occupancies, and hotel development expanding beyond metros. As a sector that contributes meaningfully to GDP, employment, and foreign exchange earnings, hospitality today sits at the intersection of tourism growth and economic expansion. Yet, despite its scale and impact, policy recognition and structural support continue to trail its contribution.

This backdrop explains why the industry approaches Union Budget 2026 with cautious optimism. Rather than reiterating the long-standing demand for industry status alone, hospitality stakeholders are increasingly seeking meaningful policy recognition that delivers measurable outcomes on the ground.

In practical terms, policy recognition is less about labels and more about access and parity. The sector continues to face high borrowing costs, shorter loan tenures, and inconsistent land-use and utility policies across states. These challenges directly affect long-term project viability, particularly for independent hotel owners and developers operating in Tier 2 and Tier 3 destinations, where growth momentum is strongest.

Echoing these concerns, Hotel Association of India (HAI) President K B Kachru has underlined that the hotel sector deserves due recognition for its contribution to GDP, job creation, and foreign exchange earnings. He has urged policymakers to prioritise sector-specific reforms that can drive sustainable growth and resilience, highlighting infrastructure status-linked benefits as a key intervention.

Budget 2026 arrives at a crucial inflection point. The recovery phase has largely stabilised, infrastructure-led growth is accelerating, and smaller cities are emerging as the next engines of hospitality expansion. This creates an opportunity for policy to convert rising travel demand into long-term investment rather than short-term capacity addition.

Employment and skilling remain areas where hospitality aligns closely with national priorities. As one of India’s largest job creators, the sector absorbs youth, women, and semi-skilled workers at scale. Budgetary support for skilling programmes, apprenticeships, and training infrastructure could strengthen workforce readiness while reinforcing hospitality’s role as both a social and economic enabler.

Equally important are ease-of-doing-business reforms. Digitised approvals, simplified licensing processes, and movement towards single-window clearances could significantly improve investor confidence by reducing delays and regulatory friction. These administrative changes often deliver deeper and more durable benefits than direct fiscal incentives, particularly for mid-scale and budget hotels that form the backbone of domestic tourism in emerging markets.

While expectations around full infrastructure status and GST rationalisation remain measured, a phased and clearly articulated policy direction in Budget 2026 could move hospitality closer to an “Industry Status Plus” framework. Such an approach would shift the sector from symbolic recognition to operational relevance, enabling growth one pragmatic step at a time.

The recent security incident near the Red Fort has cast a temporary shadow over Delhi’s vibrant tourism and hospitality landscape. While an immediate dip in traveler confidence and hotel bookings is likely, the long-term impact will depend on the government’s ability to reassure the public and maintain consistent safety measures.

Authorities acted promptly following the blast, tightening security across key zones including hotels, airports, metro stations, and tourist hotspots. These visible measures aim to restore public confidence and send a clear message that visitor safety remains a top priority.

In the short term, both international and domestic tourist arrivals may see a decline. Foreign advisories and safety concerns could lead to cancellations or deferred travel plans, especially among international visitors. Travel sentiment typically stabilises once official investigations progress and security visibility increases.

India’s hospitality sector has repeatedly demonstrated resilience from recovering after the pandemic to navigating regional disruptions. Many hotel groups are expected to collaborate with tourism boards and government bodies to reassure travellers, enhance safety communication, and offer flexible booking options to maintain occupancy.

Hotels in central areas such as Paharganj, Daryaganj, Connaught Place, and near the Red Fort are likely to feel the initial impact more sharply, with cancellations and slower bookings. Some business and MICE travellers may temporarily choose nearby cities like Gurugram and Noida, which are perceived as less affected.

Luxury chains, backed by established brand trust and corporate clients, are expected to weather the slowdown better than smaller or budget hotels that rely heavily on walk-in leisure guests. To stay resilient, many hotels are likely to introduce flexible rates, enhanced security checks, and clear guest communication to reinforce trust.

A transparent investigation process, frequent public updates, and proactive safety communication will be key to rebuilding trust. Political assurance and visible enforcement efforts play a vital role in signalling stability to residents and international partners alike.

The incident poses a short-term setback for Delhi’s tourism and hotel sectors, particularly as it coincides with the peak season from October to April. However, industry experts remain confident that the disruption will be temporary. With swift government action, consistent messaging, and the industry’s strong recovery framework, Delhi is expected to regain its footing as a safe and thriving destination for both leisure and business travellers.

Image Courtesy: Reuters

There are stories that entertain, stories that teach, and then there are stories that leave a glow in your heart long after you’ve turned the final page. “Moth to Flame” belongs to the last kind.

Written by the veteran hotelier P. K. Mohankumar, fondly known across the industry as PKMK, this book is much more than a memoir. It is a lyrical reflection of a life devoted to the art of hospitality and the quiet courage it takes to follow an unconventional dream.

From his beginnings in the serene city of Trivandrum in Kerala, where values of humility and education were deeply rooted, Mohankumar dared to step off the well-trodden path. In an age when young minds were expected to become doctors, engineers, or civil servants, he chose a road less known, “the world of hotel management”. His decision to join the Institute of Hotel Management, Mumbai, then the country’s most prestigious catering college, marked the birth of a new kind of dreamer, one who believed that serving others with warmth and grace was a noble pursuit.

“Moth to Flame” gently unfolds this remarkable odyssey. It tells of his ascent within the Tata Group’s Indian Hotels Company Limited, where he spent over four decades shaping and nurturing the soul of Indian hospitality. From his early days at the legendary Taj Mahal Palace, Mumbai, to his later years as Managing Director and CEO of Taj Gateway and Ginger Hotels, every chapter reflects his belief that hospitality is not a job, but a calling.

Within these pages, readers will find rare glimpses of moments shared with visionary leaders like the Late Mr J. R. D. Tata and the Late Mr Ratan Tata, whose ideals deeply influenced his journey. There are reflections on leadership, humanity, and the subtle art of creating joy for others; lessons drawn not from boardrooms, but from lobbies, kitchens, and countless conversations that shaped a lifetime.

Through his poetic storytelling, Mr Mohankumar invites readers to witness the evolution of an industry once considered peripheral, now standing tall as one of India’s most respected professions. The book is both nostalgic and forward-looking, filled with gratitude for the people, mentors, and institutions that built the hospitality world we know today.

Honoured with the Hall of Fame Award by his alma mater, the Institute of Hotel Management, Dadar, Mumbai, and the Lifetime Achievement Award by the TajLifers Collective, he remains a guiding light for young hoteliers. Even today, as he serves on the boards of Orange County and Prestige Hospitality, his wisdom continues to inspire the next generation.

At its heart, “Moth to Flame” is a story of devotion — of a man who chased the glow of his passion and, in doing so, illuminated the path for countless others. It is a reminder that the truest success lies not in titles or accolades, but in the light we pass on through our work, our words, and our kindness.

As Mr. Mohankumar beautifully reflects,

“The moth that chased the light was not destroyed. It was illuminated.”

At HospitalityNews, we believe “Moth to Flame” is an experience every hotelier, reader, and dreamer should embrace. It stands as a timeless reflection of what makes hospitality one of life’s most noble pursuits, a celebration of heart, heritage, and humanity expressed through a lifetime of purpose and passion.

Beyond the boardrooms and the bustle of hotel life, “Moth to Flame” also offers a glimpse into the man behind the professional triumphs. Mr. Mohankumar shares how he balanced an intense and demanding career with deep devotion to his family. Through years spent traveling and leading from the front, he anchored his personal life with self-discipline, integrity, and an unwavering commitment as a husband and father. He speaks of the importance of spending quality time together, creating meaningful moments during holidays, and embracing life’s imperfections with grace. His family, understanding his deep passion for his work, stood beside him, allowing him to pursue his calling while remaining the steady light at the center of his world.

“Moth to Flame” invites readers to feel every moment and walk alongside a man whose journey continues to inspire generations. For those who see hospitality as an expression of the soul rather than mere service, this story will stay with you, warm, luminous, and enduring like the gentle glow of a flame that never fades.

Book Launch Event

Join us as we celebrate the official launch of “Moth to Flame” by P.K. Mohankumar
Date: Saturday, November 8, 2025
Time: 10:30 AM
Venue: Tamara Lawns, Taj MG Road, Bengaluru

About the Book

Title: Moth to Flame
Author: P. K. Mohankumar
Genre: Memoir, Hospitality and Leadership
Now available for readers and dreamers who believe that true hospitality begins with heart.

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