Events-related travel to, within India hit amid rising Indo-Pak tensions

Several upscale hotels in New Delhi reporting cancellation or postponing of business meetings, conferences

The escalating tensions between India and Pakistan have impacted the meetings, incentives, conferences and exhibitions (MICE) segment, with travel to and within India witnessing a fall, though marginally. Several upscale hotels in New Delhi have reported cancellation of multiple banquet bookings amid rising uncertainty due to the conflict between the two countries.

 

The Confederation of Indian Industries (CII) on Friday postponed its Annual Business Summit that was supposed to be held on May 12 and 13 at Taj Palace hotel in Chanakyapuri.

 

“In view of the prevailing evolving circumstances, it has been decided to postpone the CII Annual Business Summit as a gesture of respect for those engaged in safeguarding the country, and a reaffirmation of our intent to contribute constructively and responsibly,” CII said. 

   

The event was to be attended by over 1,500 delegates and at least 10 ministers were to speak at the summit. At other hotels, too, cancellations started to trickle in by Friday evening.

 

“We have started to see some cancellations for banquet events and some for rooms. Business executives are choosing to avoid any non-essential travel,” said a hotel booking manager on condition of anonymity.

 

Business Standard reported earlier this week that leisure as well as business travel across north India was seeing a dip and would continue to be subdued owing to the uncertainties of an imminent war-like situation.

 

Travel industry executives have pointed out that not just domestic travel to the northern region, but inbound travel into India, too, might start seeing a decline in the coming week if tensions continue to flare. 

 

“People will definitely start to become more cautious. While Indians might also rethink going out, because of increased travel times and increased prices, what will be the most impacted is inbound travel until the situation de-escalates,” an industry executive had told Business Standard earlier.

 

“This would especially impact the MICE segment going forward,” the executive added.

 

Earlier this week, the Embassy of the United States of America in New Delhi, and the British High Commission had advised against travel to certain parts of India, including Jammu and Kashmir.

 

China, too, has asked citizens to avoid travel to “conflict zones” in India, while Canada has asked citizens to exercise a “high degree of caution in India due to threat of terrorist strikes”. 

 

The Indian government has been strategically targeting the MICE sector, recognising its potential to attract high-spending, repeat visitors and has been working on the simplification of visa procedures, on top of having created E-visa facilities for over 175 countries.

 

According to a February 2025 report by Deloitte, the Indian corporate travel sector is growing, driven by rising MICE events and the expansion of SMEs exploring new markets.

 

“The country’s success in hosting large-scale events, such as the G20 Summit, signals future opportunities. Additionally, India is becoming a key hub for global capability centres, increasing employee travel needs. An analysis of the top 100 firms by net income shows IT services, BFSI and engineering account for 57 per cent of corporate travel spend, with most firms allocating 1 per cent of net income to travel budgets, highlighting the sector’s importance,” the report stated.