Hotel expansion in small towns leads to job growth

Leading hotel chains are opening new locations in smaller towns, creating thousands of jobs in the hospitality sector. This trend is seen as a way to encourage people to move back to their hometowns, a process known as reverse migration. Companies are also investing in skill development to prepare locals for these new positions. In 2025, there will be many new hotel openings in remote areas, leading to significant job creation. For instance, the Indian Hotels Company (IHCL) recently signed an agreement to set up a major hospitality training center in Goa. This center aims to boost the tourism industry by offering training for the local workforce. IHCL’s executive said the focus is on enriching the workforce in smaller cities like Jamshedpur and Nagpur. Other hotel chains, including ITC Hotels and Radisson Hotel Group, are also expanding into tier two and tier three cities. ITC Hotels has created internship programs that involve over 5,000 students from more than 300 institutions. Radisson expects to create around 3,000 new jobs in India, allowing skilled professionals to return to their hometowns. The benefits of living in smaller towns, like a better work-life balance and lower living costs, are pushing many professionals to relocate. Companies are investing in training programs to ensure that local individuals can meet industry demands. Hyatt reported that up to 31% of new hires were returning to their hometowns. Social responsibility funds are being used for skill development in the hospitality sector, with organizations like The Job Plus helping to prepare young individuals for employment. This initiative has already trained about 1,800 people aged 18 to 24. Senior professionals are also choosing to return home as new job opportunities arise. Sarovar Hotels alone anticipates hiring between 1,800 and 2,200 new employees this year.