By BOTT Desk
As Union Finance Minister presented the interim Budget 2024 today, stakeholders from the travel and tourism sector said that the multi-pronged approach will create a multiplier effect across aviation, tourism and allied sectors, boosting growth and employment generation. Some commentaries said the budget provided an indirect boost to the tourism sector with enhanced capital expenditure. Here are some #Budget2024 reactions from leaders of travel and tourism sector:
Madhavan Menon, Executive Chairman, Thomas Cook (India) Limited
- We welcome the announcements on airport development and expansion: having already doubled to 149 airports in the last decade, the government’s plans to boost air connectivity by the addition of 517 new routes across Tier 2-3 cities, carrying 1.3 crore passengers via the UDAN scheme, will play a critical role with vibrant hub and spoke air corridors to boost accessibility-affordability for Regional India.
- Implementation of major rail connectivity corridors via the PM Gati Shakti program together with port and metro/rapid transport expansion will serve to create valuable multi modal connectivity for Tourism.
- We welcome the special focus on Domestic Tourism which represents a vibrant growth driver via the government’s plan of long-term interest free loans to States; development of iconic tourism centres by States along with marketing on global standards. What was noteworthy is the reference to Spiritual Tourism and projects for port connectivity, tourism infrastructure and amenities on islands including Lakshdweep – aimed at development of India’s hidden gems and employment opportunities.
- Further, the strong capex outlay of Rs 11.11 lakh cr, a significant 4% of our GDP, will serve as a catalyst to the Country’s growth potential and job creation.
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Mr Kush Kapoor , CEO , Roseate Hotels & Resorts
Hon’ble FM Sitharaman’s interim Budget speech underscores a strategic move to reshape India’s MICE (Meetings, Incentives, Conferences, and Exhibitions) landscape by encouraging states to develop iconic tourist centres. The commitment to promoting these centers through long-term interest-free loans signifies a visionary approach, fostering a thriving ecosystem for local entrepreneurs. The recognition of G20 meetings as a showcase of India’s diversity is a powerful endorsement.
For the hotel industry, this announcement holds immense promise, turning these tourist centers into magnets for MICE activities. Strategically located and well-equipped, these centers can become hubs for national and international gatherings, boosting demand for accommodation, meeting spaces, and related services. The ripple effect is undeniable, with hotel occupancy rates set to surge as these centers become focal points for corporate events. The long-term interest-free loans to states provide the financial impetus for seamless development, enhancing the appeal of these centres. This support not only fuels infrastructure growth but also attracts event organisers. Hotels, by aligning with the burgeoning MICE sector and offering top-notch facilities, can position themselves as preferred choices. The budget’s emphasis, therefore, not only transforms MICE activities but also presents a significant opportunity for the hotel industry’s growth and prosperity.”
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Vishal Suri, Managing Director, SOTC Travel Limited
The interim budget presented by Hon’ble Finance Minister has maintained status-quo on direct and indirect taxes thus keeping its impact neutral. The government has set focus on the overall travel and tourism sector via infrastructure development, green energy, sustainability and looked at diverse initiatives for domestic tourism via a strategic approach for each segment – aviation, ports (waterways) and rail to strengthen regional connectivity to tier 2 and 3 cities.
We welcome the development on the rapid expansion of air connectivity with the addition of 517 new routes across Regional India’s tier 2 and 3 cities via the UDAN scheme – this will play a key role in strengthening accessibility.
The special focus on strengthening domestic tourism via implementation of rail connectivity corridors under the PM Gati Shakti initiative and upgrading 40,000 regular train boogies into high speed Vande Bharat trains will definitely strengthen surface transportation.
The Government’s plan on focus on spiritual tourism, development of iconic tourist spots and island destinations of India including Lakshadweep (projects for port connectivity, tourism infrastructure, and amenities) will generate employment thus boosting India’s economy. What is noteworthy, is the Government’s mindful move to form a panel to tackle challenges of higher population/over tourism, especially in destinations with sensitive ecosystems.
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Simranjeet Singh, Director, CYK Hospitalities
As the network via road, rail, airport, and highway increases, it opens up opportunities for more travel, which creates a domino effect over the food and beverage industry as well. With developments like these and spiritual tourism coming up, the scope for established as well as new food brands has increased. The Honourable Finance Minister’s announcement to develop infrastructure across the country is a welcome step for everyone related to the F&B industry. The international and domestic brands will get a chance to penetrate more Nationwide, also giving a great employment opportunity.
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Travel Agents Association of India (TAAI)
The interim budget presented by Hon. Finance Minister Smt. Nirmala Sitharaman on 1st February’24 has shown no respite to the Travel Agents / Tour Operators.
Travel Agents Association of India (TAAI) states that various representations were made to the Finance Ministry on concerns of ease of doing business, specifically on GST, TCS and other challenges faced by the travel and tourism sector in India.
TAAI being the nodal and premier body feels that although being an interim budget pending challenges and concerns from over two years could have been addressed by the Hon’ble FM, especially on the TCS levy on Overseas Tour Programme Package, which is impacting business of travel agents operating in India making them non-competitive and impacting the liquidity of the consumer / traveller.
Although announcements have been made on development and infrastructure to the Tourism Industry specifically in the North East, Island Destinations like Lakshadweep, thereby promoting investment in the sector.
We are happy that the FM spoke about Viksit Bharat and has encouraged other industries but totally ignored the travel agent and tour operators who are the catalyst in developments, enhancement and promotion of tourism, be it domestic, inbound, inland as well as outbound tourism.
Further with the increase in UDAN and aviation sector in India at large, there has been no observations noted or any directions formulated on airlines going bankrupt. TAAI has already submitted a document to the authorities on the protection of interest of the Consumers / Travellers / Travel Agents against the bankruptcy of Airlines operating in India, whereby hundreds of crores are lost by the travelling community.
Overall at the macros level Tourism Infrastructure and development has got a boost which is a long term benefit but nothing in the coming year shall benefit the trade at large.
We appreciate her views on enhancing and promoting spiritual tourism, which shall certainly lead to more employment and entrepreneurship in the sector. Additionally the Governments encouragement on development of new airports, rail corridors, roads and ports which shall enable last mile connectivity is also seen as long term growth oriented. We also acknowledge that the Government has placed MiCE, especially Business and Conference Tourism as a prime focus area but the same is not possible without appropriate infrastructure, which shall take a few years to develop.
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Sandeep Arora, Director, Brightsun Travel
As expected, this year’s budget puts a strong emphasis on domestic tourism, and we truly applaud this move. The commitment to providing interest-free loans to states for enhancing tourism within their borders is a positive step to boost domestic tourism in the country. There are many offbeat destinations within India that are unique and one of a kind, so government’s pledge for the comprehensive development of tourist centers, with a focus on branding and global-scale marketing, is another welcome move. This will undoubtedly pave the way for transformative growth in the travel and tourism sector, enabling us to showcase the incredible diversity and richness of our nation to the world.
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Manish Rathi, co-founder and CEO, IntrCity SmartBus
The government’s prioritisation of improving public transportation and connectivity in the 2024 interim budget highlights the critical importance of efficient and reliable transportation in the country. Through promoting the thorough development and promotion of tourist destinations by individual states, the initiative aims to draw in more visitors from around the globe. In particular, the provision of long-term interest-free loans to states, matched by their own investments, is a noteworthy aspect. Not only does it facilitate crucial improvements to infrastructure and amenities, but it also ensures long-term sustainability and the optimisation of these developments to fully showcase the unique characteristics of each destination.
With the increasing enthusiasm among Indians for traveling within their own country, specially to spiritual and culturally significant destinations. The announced endeavours cater to the expanding middle class income group, highlighting a progressive mindset in tapping into the untapped potential of the domestic market while simultaneously making Indian locales more attractive for everyone. The focus on domestic travel is not just a mere tactic; it serves to instil a sense of pride and knowledge in Indians about their own heritage while also jumpstarting socio-economic progress, especially in smaller cities. Through the promotion of inclusive development, these endeavours strive to empower local communities.
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Manoj Sihag & Rahul Uppal, Directors, Echor Hotels & Resorts
We celebrate the government’s commendable increase in capex for road infrastructure, there’s a missed chance in the new budget to merge GST categories. Despite this, the enhanced connectivity will positively impact local tourism, cutting travel time from major cities like Delhi to scenic destinations like Himachal and Kashmir through improved tunnels and roads.
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Kanika Tekriwal, Founder, JetSetGo
As the Finance Minister charts the course for India’s economic future in the interim budget 2024, JetSetGo stands in harmony, sharing a vision of ‘Reform, Perform, and Transform.’ Aligned with the government’s forward-looking initiatives, we celebrate the doubling of airports to 149, enabling private aviation companies like ours to extend our reach and serve as a vital link for India’s economic leaders, entrepreneurs, and decision-makers. The expansion of airport infrastructure complements our commitment to efficient time management and personalised services, ensuring a seamless travel experience. We are enthused by the focus on enhancing tourism infrastructure on islands, recognising the unique appeal of private jets for reaching offbeat destinations. Emphasising urban mobility, the Finance Minister’s vision paves the way for growth in the aviation sector. The broader emphasis on infrastructure development and increased spending, coupled with the optimistic outlook for India in the global aviation market, solidify our confidence in the growth story. JetSetGo stands aligned with this vision, having already established strategic partnerships with aircraft technology companies to introduce Advanced Air Mobility solutions, enhancing regional connectivity and contributing to India’s dynamic aviation landscape.
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Dr. Vikram Kamat, CMD of The Vitskamats Group
While appreciating the broader economic outlook presented in the interim budget, the hospitality and restaurant sectors also play a pivotal role in our economic landscape and require targeted support to navigate the challenges they face. As we anticipate the full budget, our hope remains steadfast for a more comprehensive approach to address the specific needs of these vital sectors.
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Srikant Peri, General Manager, Dharana at Shillim
As the General Manager of Dharana at Shillim, I am thrilled by the government’s proactive measures to bolster the tourism sector, particularly the initiative to offer long-term interest-free loans for the promotion of iconic tourist centres. This progressive approach underscores a commitment to showcasing India’s rich cultural and natural heritage on a global stage.
Furthermore, the government’s emphasis on integrating green energy initiatives within the tourism industry is a significant stride towards sustainability. At Dharana, we believe in embracing this initiative, aligning with our ethos of environmental stewardship. By harnessing renewable energy sources and implementing eco-friendly practices, we aim to minimise our environmental footprint while offering guests transformative wellness experiences amidst nature.
This concerted effort signifies a progressive shift towards sustainable tourism, where economic growth harmonises with environmental conservation. Together, let’s embark on a journey towards a greener, more resilient tourism industry—one that not only enriches the lives of travellers but also safeguards the beauty of our planet for generations to come.
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Davinder Juj, General Manager, Eros Hotel New Delhi
“We applaud the forward-thinking measures outlined in Union Budget 2024, particularly the interest-free loans for states to enhance their tourism hubs, attract business and create entrepreneurship and employment opportunities for locals.
The proposed port connectivity and infrastructure improvements for island and other attractive location accessibility in the country will motivate families and young tourists to opt for domestic travel. This step will further strengthen the hospitality industry and travel and tourism sector will grow rapidly in the country.
Overall, being an interim budget, Union Budget 2024 was balanced and I expect the recommendations made for direct and indirect taxes will empower the middle class to spend the money on leisure and travel more.”
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Ayyappan R., CEO, Cleartrip
“The interim budget is a welcome boost to India’s travel and tourism sector. The continued infrastructural development and state-centric projects to promote tourist attractions will help boost domestic tourism while generating greater employment in the sector. Initiatives like UDAN concurrently improve regional connectivity, fostering accessibility to people. The inflow of investments towards road transport and railways will further aid in greater connectivity and affordable travel options, especially for the mid-income population. In terms of travel trends, the surge in leisure and spiritual tourism, coupled with an increased consumer desire to invest in travel and exploration will add to the sector’s growth.”
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