– Compiled by BOTT Desk
“As President of the Travel Agents Association of India & Vice Chairperson of FAITH, the budget for tourism is a huge letdown. The focus on infrastructure development just in couple of states out of 28 states & 8 Union Territories seems very political. Yes, the promotion of a religious corridor in these states is appreciated. The only word of inclusion is the reduction of TDS for all e-commerce companies & simpler tax regime for foreign shipping companies’ operation in the domestic market for cruise tourism.
As Chairperson of the Tourism & Hospitality Skill Council, the focus on skilling is appreciable but where will the jobs be created in the tourism sector unless the employer can absorb more & pay the skilled youth.” — Jyoti Mayal, President, TAAI
“We welcome the Union Budget 2024-2025 which focuses on positioning India as a global tourism hub through progressive initiatives. The surge in spiritual tourism has been recognized, and we are excited to see the sector receiving much-needed support in this year’s budget. The development of road connectivity projects, with a special emphasis on spiritual and cultural corridors, underscores the Government of India’s commitment to fueling the growth of the country’s rich cultural and spiritual network of tourism. At Radisson Hotel Group, we have always focused on Tier II and III cities, leveraging a first-mover advantage with 50% of our portfolio in these regions. Our strategic commitment to these destinations aligns with the government’s vision, allowing us to meet the increasing demand for spiritual experiences and further strengthen our presence across India. We are optimistic that this development will not only propel the domestic tourism sector but will also provide an opportunity for foreign tourists to further explore the rich culture of India,”
— Nikhil Sharma, Managing Director and Area Senior Vice President- South Asia, Radisson Hotel Group
“Nothing was announced for inbound tourism. Any new international cruise liner coming into India and doing domestic business would be given a tax waiver but what about Indian companies that were already operating here? We had given many recommendations, but have been totally ignored or not taken up. The government has made it a clear objective to give a boost to employment generation. However, this being one of the largest employment-generating sectors, why were no concrete announcements made for it?
— Rajiv Mehra, President, IATO
“There is no vision for tourism if we look at what the government has announced for Bihar and Odisha. The Centre said nothing about any additional allocation of funds, or incentives for tour operators. Tourism is still not treated as an industry and this is critical when we look at our neighbours like Thailand, Malaysia, Vietnam and others which treat tourism as a priority item. Domestic tourism brings in foreign exchange receipts for the country. While they said they would make India an international tourist destination, they mainly only spoke about developing domestic temples. When domestic tourism grows, money only exchanges hands locally. But if international inbound tourism into India picks up, it brings additional foreign exchange receipts.”
— Subhash Goyal, Chairperson, STIC Travel Group of companies.
“The Union Budget 2024-25 presents a mixed picture for the tourism sector. While the focus on skilling and infrastructure development indirectly benefits tourism, the direct support, particularly in marketing, has been lacking. The marketing budget has been significantly reduced from the previous allocation to just 33 crore rupees. The government’s investment is primarily directed towards developing spiritual and Buddhist circuits like Gaya to Bodh Gaya, Rajgir, Nalanda, and Odisha. This approach leaves other crucial sectors, such as inbound leisure, wildlife tourism, and the MICE (Meetings, Incentives, Conferences, and Exhibitions) industry, underrepresented. There is a clear need for a broader vision that encompasses all aspects of tourism to truly harness its potential for economic growth and job creation.”
— Amaresh Tiwari, Vice President, ICPB
“Though Budget 2024 did not provide direct tax rebates for the hospitality sector, it offers significant indirect benefits. The Finance Minister’s announcement of a new centrally-sponsored scheme for skilling 20 lakh youth over the next five years is a vital step. The revision of the Model Skill Loan scheme and the introduction of a new internship program, funded through CSR, will greatly assist in attracting skilled manpower, which our industry desperately needs. The government’s upskilling initiatives, including the ₹5000 incentive for interns, are commendable and will ease operational expenses. This financial year has already exceeded our budget expectations, marking a historic performance for the industry. We remain hopeful for further support, but these budget measures have been positively received.”
— Kush Kapoor, CEO, Roseate Hotels & Resorts
“The hospitality sector has been pinning high hopes on the Union Budget for 2024- 25 presented by Smt. Nirmala Sitharaman today, on the backdrop of the Government of India’s stated vision of Viksit Bharat by 2047 and the critical role the tourism industry holds in achieving it. However, there is nothing spectacular in the budget to bring structural changes to address the fundamental challenges it faces in a competitive world order and to accelerate the growth of the sector to be a $ 3 trillion economy by 2047.
The hospitality sector is disappointed but not dejected as the overall focus on infrastructure development, employment generation skill development and the development of religious tourism centres are the silver linings which will help the sector to tide over some of the critical challenges that it faces today. The government’s proactive perspective on enhancing tourism, particularly through the development of spiritual and cultural landmarks like the Vishnupath temple in Gaya and Mahabodhi temple in Bodhgaya is a commendable move that promises substantial economic and social benefits. Furthermore, the development plans for Rajgir and Nalanda represent a significant investment in promoting India’s ancient historical and educational legacy. The government’s commitment to supporting tourism in Odisha will not only highlight Odisha’s unique attractions but also encourages sustainable practices that preserve the state’s ecological balance and cultural heritage.”
— Pradeep Shetty, President of FHRAI
“We commend the government’s visionary approach in recognizing the immense potential of India’s tourism sector. The development plans for the Vishnupath and Mahabodhi temples, as well as Rajgir and Nalanda will not only enhance the spiritual and historical significance of these sites, but also drive economic growth and create employment opportunities. This budget is a significant step towards making India a top global tourist destination.”
–-Anil Parashar, Chair – Tourism & Hospitality Committee, PHDCCI
“The focus on advancing tourism in Odisha and other culturally rich states is highly commendable. By improving tourism infrastructure and promoting our diverse natural and historical attractions, we are poised to attract global tourists, thereby boosting local economies and fostering sustainable development. Simpler tax regime for foreign cruise companies for operating domestic cruise vessels in India will promote cruise tourism.”
— Rajan Sehgal, Co-Chair – Tourism & Hospitality Committee, PHDCCI
“We are excited about the continued budgetary focus on road & travel infrastructure, which further opens huge potential to serve new regions and improve shared bus transport experience for inter-city travellers A large allocation of Rs 11.11 lakh crore for capital expenditure is aimed at enhancing road infrastructure and will significantly improve the efficiency and reach of inter-city bus transportation networks.
With a planned investment of Rs 26,000 crore in road projects across Bihar, including the development of new expressways, we see a significant opportunity for expansion. This infrastructure growth is set to enhance connectivity and journey experiences for travellers, providing them with more route options. Furthermore, the ‘Purvodaya’ initiative targeting eastern states presents a golden opportunity for the bus transportation sector. As these regions become more connected and economically active, we anticipate a surge in demand for reliable inter-city bus services. These developments align with our commitment to providing reliable and comfortable long-distance bus services.”
— Kapil Raizada, Co-founder, IntrCity SmartBus
“While it is encouraging the FM, announced that India has the potential to become a global tourism hub, it would also have been nice to see budget recommendation supporting the same, such as an increase in the marketing and publicity budget, infrastructure status support to hospitality, abolishment of TCS on travel and reduction in GST rates on tourism travel and hospitality. The support given to spiritual tourism through corridor development and cruise tourism through tax adjustment on foreign ships in Indian shores will support these sub sectors. There was the potential for this budget to address a lot more opportunities for growth in Indian tourism in a structured manner.”
— Aashish Gupta, Consulting CEO, FAITH
“The recent budget plan highlights a game-changing vision for India’s tourism industry. Building up the Vishnupad and Mahabodhi Temple corridors, along with the extensive development of Rajgir and re-establishing the Nalanda University, will elevate India’s cultural and historical charm. We’re delighted about the assistance for making Odisha an ultimate top-spot for tourists. As one of the key players in the hotel business, it is our aim to ensure that our services will be exceptional enough to match these improvements and give guests amazing experiences that draw attention to India’s deep roots and lively culture.”
— Akash Bhatia, CEO of Eco Hotels and Resorts Limited
“The government’s policy initiatives to enhance spiritual tourism are a welcome move towards growing domestic tourism as well as making India a global travel destination. We saw a 40-50% increase in demand for spiritual tourism last year, for destinations like Varanasi, Ayodhya and Tirupati. The government’s PRASAD Scheme has led to a remarkable transformation in Varanasi’s tourism sector, attracting an unprecedented 100 million visitors to Kashi Vishwanath Dham after the corridor project completion. We expect a similar boost in tourism to Bihar and Odisha with spiritual tourism corridors coming up for Vishnupad Temple and Mahabodhi Temple at Bodh Gaya, along with comprehensive initiatives for Rajgir, Nalanda, and Odisha. We expect this to benefit our large next billion user (NBU) base which predominantly relies on buses and trains to access these spiritual towns, and where our market share continues to improve across modes of transport.”
— Aloke Bajpai, Chairman, Managing Director & Group CEO, Ixigo
“It is highly encouraging to see that the Hon’ble Finance Minister has underscored the vital role of tourism in driving our economy and boosting employment and GDP. The enhanced focus on developing tourism corridors at Vishnupad Temple and Mahabodhi Temple, modeled after the successful Kashi Vishwanath Temple initiative, will significantly contribute to tourism growth during the Amrit Kal. Additionally, the government’s support for transforming Nalanda in Bihar into a major tourist destination is a noteworthy step forward. Finance Minister Sitharaman’s announcement of an economic policy framework aimed at ushering in next-generation reforms to drive economic growth further underscores this commitment. The Union Budget’s robust allocation of Rs 11.11 lakh crore for capital expenditure also highlights a strong commitment to infrastructure development.
However, to fully harness the potential of the hospitality sector and further enhance tourism, it was crucial for the government to consider more lenient tax policies and allocate a substantial budget to elevate hotel standards. We are optimistic that future support from the Government will include granting infrastructure status to the hospitality and tourism sectors, which will help us achieve long-awaited progress and drive sustained growth.”
— Animesh Kumar, Head of Commercials at ibis & ibis Styles India
“The interim budget of February 2024 laid down a promising path, significantly increasing the budgetary allocation for the tourism ministry. This strategic move underscores the government’s commitment to enhancing tourism infrastructure, which is crucial for invigorating local economies and attracting both domestic and international tourists. “The latest budget builds on these efforts by emphasizing key areas of infrastructure development. Investments in expanding and modernizing highways, improving road connectivity to popular and offbeat destinations, and enhancing airport facilities are pivotal steps. These improvements not only make travel more convenient and enjoyable for tourists but also play a vital role in boosting regional economies and creating jobs.”
— Gaurav Aggarwal, CEO of Savaari Car Rentals
“We warmly welcome the budget announced today by Finance Minister Nirmala Sitharaman. The government’s focus on the tourism industry, especially the development initiatives for Jharkhand, Odisha, and the North East, is commendable. The special emphasis on Rajgir and Nalanda will undoubtedly enhance religious and cultural tourism, creating new opportunities for growth and community engagement.
In 2023, India’s tourism sector attracted over 9 million foreign tourists, marking a remarkable growth rate of over 40% year-on-year. The budget’s commitment to enhancing spiritual tourism, particularly through the development of significant sites like Bodh Gaya and the Vishnupada Temple, is a strategic move that promises substantial economic benefits for the regions involved.
However, we had hoped that the Honorable Minister would grant infrastructure status to the hospitality industry. As a highly capital-intensive sector, our industry requires significant investments, and the initial 3-4 years often yield no profits due to high-interest loans from banks. Granting infrastructure status would enable us to access loans at lower interest rates, facilitating the development of more hotels and improving the quality of facilities offered. This is essential to attract both Indian and international tourists and to support the overall development of our industry,”
–SP Jain, Chairman and Founder, Pride Hotels Group
“We welcome the government’s recognition of the tremendous potential for cruise tourism in India and the introduction of a simpler tax regime for foreign shipping companies operating domestic cruises. These measures, along with the presumptive taxation regime for cruise ship operations by non-residents, are likely to boost infrastructure development and create employment opportunities.
We also hope that future policies will extend benefits to homegrown companies like ours, which are driving this industry’s growth. It is crucial that incentives and support are provided to domestic operators to ensure a level playing field and stimulate further growth within the industry. Furthermore, we seek clarity regarding the TCS mandate on cruise services. We believe that exempting cruise services from the TCS mandate would make cruising more cost-effective, boost bookings, and ultimately benefit the industry and our economy.”
— Jurgen Bailom, President and CEO of Cordelia Cruises
“Extremely disappointed with the budget as it does not address any issues of grave concern like the GST and TCS…there is no clear focus on promoting India as a Tourism Hub for all kind of travellers. Just developing Temples and some specified corridors which anyway lack basic infrastructure as of now will not help India realize it’s true potential. Like I said in the past, all governments have only done lip service to tourism potential of India without actually devising a plan leave alone implement anything. This budget is more for keeping the political flock happy that suits the current dispensation.”
— Pankaj Nagpal, Managing Director, Travstarz Global Group
“The budget is focused on fiscal prudence, stimulating investments, providing employment, and encouraging growth in the economy. The emphasis on improved connectivity and infrastructure will greatly benefit the domestic tourism sector. The spotlight on developing religious tourism, will further boost the local economy by providing investment and employment.”
— Manoj Bhat, MD & CEO, Mahindra Holidays and Resorts India
“We welcome the provisions presented in Union Budget 2024 by Finance Minister Nirmala Sitharaman, particularly the initiative to transform several iconic locations into world-class tourist destinations. This strategic move aims to attract businesses, support entrepreneurship, and create job opportunities for local communities. We also commend the government’s dedication to positioning India as a top global travel destination through targeted investments and strategic efforts. The development of prominent spiritual and cultural sites, along with the nation’s natural and scenic attractions, will attract both domestic and international tourists, bolstering the growth of the hospitality and travel sector.”
— Davinder Juj, General Manager, Eros Hotel New Delhi
“Terrible is the word for Budget 2024. They are all talk for tourism and no action! The already ignored sector is simply overlooked again. Where is the talk of ‘Meet in India’ and ‘Chalo India’ gone? Do they really think a budget of 33 crores will achieve anything (and I’m very sure even that will go unspent)? Deeply disappointed with this bizarre budget! I’m surprised that even after the G-20, they did not try and learn. They need to learn a thing or two from neighbouring countries like Thailand, Malaysia, Singapore, and Hong Kong, who are subsidizing incoming incentives from overseas, helping them achieve substantially high numbers from India. All DOT will now do is hold meetings and meetings, spend money on tea and samosas, and discuss how to promote ‘Make in India’ and ‘Chalo India.’
– Naveen Kundu, MD, Ebixcash
“The increase in spiritual tourism has been acknowledged, and I am delighted to see the sector receiving much-needed support in this year’s budget. The emphasis on this segment has inspired us to target additional spiritual destinations in the near future”.
“Once again, the budget has overlooked key demands from the tourism and hospitality sector, such as granting infrastructure status, reducing the GST rate for travel and hospitality, etc. These measures are essential for revitalizing the sector”.
-Shamitav Jana, CEO & Founder of Sapphero Hotels & Resorts
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