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Published 13:29 IST, November 25th 2024

Smog Tourism? All About The 'Pollution' Phenomenon That's Gripped Delhi-NCR

The increasing popularity of hill stations as tourist destinations and second-home locales is driving substantial brand investments across multiple sectors

Reported by: Urvi Shrivastav
Delhi's Air Pollution | Image: ANI

AQI in Delhi has consistently crossed 300, particularly during the winter season, earning it the dubious distinction of being the sixth most polluted city in the world.

Globally, India has 7 out of 10 most polluted cities in the world. As AQI continues to scale new peaks, people are looking to escape the pollution and turning to hill stations for a quick escape as a second home investment. This phenomenon

 has had a marked impact on the region's economy with major players looking to tap into the economic potential of smog-induced tourism. Manit Sethi, Director, Excentia Tatva, said, “With increasing awareness about the health impacts of

 prolonged exposure to urban pollution, destinations like Dehradun have grown in prominence as second home hubs.”

Who Are The Brands Investing?

In the real estate sector, developers focus on high-end homes, holiday homes, and serviced apartments, catering to affluent buyers and travelers seeking premium experiences.

"The thriving second home market, growing at a CAGR of 20-25% and expected to cross USD 4 billion by 2026, has opened avenues for diverse brand investments," said Ankit Kansal, managing director of SKYE Hospitality.

Companies like Lohono Stays, SaffronStays, Rentalgram, and Airbnb are playing a significant role in managing second homes, enabling owners to generate rental income while meeting the demand for vacation rentals.

"These platforms ensure a steady influx of tourism-driven investments," said Kansal. Another notable trend is the collaboration between mainstream hotel chains and real estate developers to create hybrid value propositions like hotel villas,

 branded homes, and integrated lifestyle communities. This reflects a maturing market catering to second-home buyers and short-term tourists alike.

Smog Tourism: Who Is The Audience?

Ambika Saxena, Director of corporate Communications at Bayside Corporations (BCS), says, "The primary investors in second homes in hill stations are typically middle-aged professionals (35-55 years) and retirees." The people are drawn to

 the area's healthier lifestyle, away from urban pollution.

"This age group includes successful business owners, corporate executives, and those in a phase of life where they can afford the luxury of a second home," Saxena said. "There's also a growing trend of younger professionals (25-35 years)

 investing in hill stations," she added.

With the rise in work-from-home culture, there is a dual demand from youngsters and senior citizens alike. "The dual demand showcases the universal appeal of second homes, catering to both the aspirations of younger buyers and the

 stability sought by more established individuals," says Kansal.

There is also demand from senior citizens whose children have immigrated to other countries, and the children are worried about the adverse health impact on their health, living and breathing the toxic air of these cities.

The phenomenon of smog-triggered tourism is picking up pace. There is little to no respite for individuals, families, senior citizens, and children trapped in highly polluted cities like Delhi.

Also Read: India’s Economic Outlook: 'Cautiously Optimistic' Says Finance Ministry | Republic Business

Updated 16:12 IST, November 25th 2024

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