India’s Tourism Jobs In Danger As West Asia Conflict Reduces Visitors
The West Asia conflict disrupts travel, causing rising costs and fewer tourists, leading to job freezes and uncertainty across India’s hotel and tourism industry.
Published : March 11, 2026 at 5:38 PM IST
By Chanchal Mukherjee
New Delhi: As the West Asia conflict disrupts global travel markets, a job crisis is looming over India’s hotel and tourism industry, affecting everyone from top-level executives and managers to taxi drivers and cleaning staff.
The stakeholders are increasingly worried about their livelihoods as operational costs rise and tourist footfall declines.
“Ongoing conflict has created uncertainty among international and domestic travellers who are currently avoiding going on tour, following which they are either holding the plan or cancelling their trips due to unpredictable conditions,” they said.
As a result, hotels, resorts, tour operators, and local businesses are witnessing a noticeable drop in bookings and visitor numbers.
According to the industry experts, the effects of the slowdown are visible in the employment sector, as many hotels and tourism companies have begun to freeze new hiring, adopting a wait-and-watch approach until travel demand improves.
“Recruitment drives have slowed down, and several businesses are focusing on managing existing staff rather than expanding their workforce,” they said.
Reason for job uncertainty
In India, the tourism and hotel industry is one of the largest sources of employment, providing 6-7 million jobs both directly and indirectly across the country.
From tour operators, travel agents, and cab drivers to hotel managers, restaurant staff, and small local vendors, a wide range of livelihoods depend on the smooth functioning of this sector.
However, a decline in tourist footfall has begun to affect the industry’s economic stability. Low tourist footfalls mean less revenue, which forces the businesses to cut costs and, in some cases, minimise workforce to cover up normal operation losses.
This time, the situation has become more uncertain due to the ongoing conflict, which has developed anxiety among travellers, increased travel costs, and disrupted tourism patterns globally.
If the situation continues for several more months, experts fear it could deepen the challenges already faced by the sector, as it will stop new recruitment, which is likely to impact the jobs of existing employees.
The ongoing situation has already created concerns of hiked prices and shortages of LPG, a crucial fuel used in hotel kitchens and restaurants, and cancellation and hikes in flight fares, which have made air travel more expensive due to higher aviation fuel prices and airspace restrictions in the Middle East.
Industry experts speak
Expressing his concern over the livelihood crisis in the industry, Rajnish Kaistha, senior vice president of the Indian Association of Tour Operators (IATO), said that if costs in the tourism sector, such as travelling, food, and accommodation, increase, tourist footfall will naturally decline. He said the scenario directly affects business revenue, increases operational pressure, and may ultimately put staff jobs at risk.
“If the ongoing conflict continues for the coming months, operational costs in the tourism sector will automatically rise while tourist footfall is likely to decline. In such situations, contractual employees are usually the first to face job losses, followed by permanent employees if the slowdown continues,” he said.
“A similar situation was witnessed during the COVID-19 pandemic, when many people working in the hospitality and tourism industry lost their jobs,” Kaistha said.
Another tourism expert, Subhas Goel, told ETV Bharat that around 15 million people are directly involved in the hospitality and tourism sector, and the ongoing conflict has already put a freeze on new hiring in the industry.
“If the war prolongs, the consequences could certainly be more serious. Businesses may be forced to reduce their existing workforce to manage rising operational costs. The situation could decline 90–95 per cent in tourist arrivals from the Middle East, while domestic tourism may fall by around 20–25 per cent,” he said.
From hoteliers and tourism players
General Secretary of the Federation of Associations of Indian Tourism & Hospitality (FAITH), Rajeev Mehra, said that the hospitality industry had adopted a ‘wait and watch policy’ to assess the upcoming challenges, as they will potentially improve if the domestic tourist flow remains as usual.
“If the LPG, flight fares and other issues escalate further, then domestic tourists will definitely avoid visiting", he said.
Sameer Baktoo, Chairman of the Travel Agents Association of India (TAAI) Jammu & Kashmir Chapter, shared similar concerns, stating that domestic middle-class tourists are feeling anxious and reluctant to spend on travel due to uncertainty about what the future holds.
“In many ways, the situation in the hotel and tourism business feels similar to the pandemic period. However, this time the government can play an important role in supporting the industry. If the government reassures travellers and encourages people to visit tourist destinations within the country, it could significantly boost domestic tourism during this difficult phase. Increased travel would help restart the flow of money in the sector and enable businesses to retain their staff,” he said.
Taking to social media X, BJP MP from Bengaluru South, Tejasvi Surya, wrote, “The reports of a shortage of LPG cylinders and its possible disruption to the hotel industry have been communicated to Minister Hardeep S Puri ji. The minister has constituted a high-priority panel to ensure LPG supply is uninterrupted to non-domestic users, including hotels.”
Tourism data states
As per the available data, India’s tourism sector recorded strong activity last year, highlighting its importance to the country’s economy. According to provisional data, India received around 9.02 million Foreign Tourist Arrivals (FTAs), which generated around 27,363.8 crore in Foreign Exchange Earnings (FEEs) in 2025.
In addition to international visitors, domestic tourism continued to play a crucial role in sustaining the industry. As per data provided by various states and union territories and other information available with the tourism ministry, the country recorded about 4,132.8 million domestic tourist visits (DTVs) during 2025.
As per the 3rd Tourism Satellite Account (TSA), the study conducted by the Ministry of Tourism estimated the share of tourism jobs in India during 2023-24 to be 13.34 per cent. The tourism sector contributes 5.22 per cent to India’s GDP, further highlighting its crucial role in the country’s economic growth.
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