It’s unfortunate that there isn’t anything much in this budget for the hospitality industry. An industry that provides millions of jobs and has the potential of providing over 50 million jobs in the next few years has not been given due attention by the government. Our industry contributes substantially to the GDP and the same is not even mentioned. If tourism is part of 5 pillars of nation building, we need to see a change in perception and mind set of the policy makers.
- K B Kachru, Chairman Emeritus and Principal Advisor, South Asia, Radisson Hotel Group
Tourism will have some importance was on govt. agenda before elections but after a massive mandate tourism is neglected & not much is thought about Tourism Industry. Only great news for travel and tourism point of view, about the Rs 100-trillion investment on infrastructure over the next five years. It is critical that we build better connectivity to key tourist destinations. Petrol & Diesel price up will have its own impact on everything. No relief on GST to tourism & hospitality sector, Luxury Hotels are still taxed on highest slab. Only single quarterly GST for those with revenue less than Rs 5 crore is a welcome move. Tourism & Hospitality sector employs over 41.6 million people and by 2028 is expected to employ over 52.3 million, accounting for over 9.4 per cent of India’s GDP still we don’t have a Industry Status and not much is thought about this sector. In totality for Tourism and Hospitality Sector it’s a disappointing budget.
- Vineet Gopal, Chief Executive Officer, MEET Travel
Today’s budget has clearly demonstrated that the government has a complete lack of understanding of the needs of a business segment that accounts for 10 per cent of the Indian economy and one that has more grass-roots employment generation potential than any other segment. It is clear that the Indian bureaucracy is stuck in a colonial mind set where tourism is nothing but a frivolous luxury that adds no value to the country. Personally speaking, I have very little expectations from this government for the next few years. It doesn’t help that our industry associations have no strong vision either.
- Rajeev Kohli, Joint Managing Director, Creative Travel
Very disappointing budget. Where are the 5 “T” this government announced in 2014? May be the annexures have a fine print that will be visible once we go through the budget. But nothing for tourism. Tourism is the fastest growing industry in the world that is not just creating jobs but both outbound and inbound tourism bring in plenty of foreign exchange and revenue for the country also.
- Guldeep Sahni, Managing Director, Weldon Tours and Travels Pvt. Ltd.
There is no focus on Tourism in Union Budget 2019-20 except that the Government has re-emphasised on 17 iconic sites being developed into model world class tourist destinations, which has been taken forward from the last year budget. We also welcome the government’s plan to restructure the national highways programme and to create network of highways for better connectivity, more focus on Swachh Bharat mission and expansion of Railway suburban networks which will boost tourism. With increased infrastructure, better road connectivity and clean India, foreign tourists will be attracted.
- Pronab Sarkar, President, Indian Association of Tour Operators. (IATO)
The Union Budget 2019, presented today by the honourable Finance Minister, Niramala Sitharaman has quite a few takeaways for the tourism industry. The government’s continuous commitment towards building a better physical and social infrastructure is a commendable gesture. Several initiatives which the government has undertaken like the Pradhan Mantri Gram Sadak Yojana, Bhartamala and Sagarmala projects, Jal Marg Vikas, industrial corridors and dedicated freight corridors are laudable and reflect how these infrastructural reforms will impact the tourism industry positively in the coming years. The UDAN Scheme which is designed to enable air connectivity to smaller cities is going to make air travel more accessible. The INR 70,000 crore capital credit infusion for PSU banks should facilitate the growth of consumer credit and accelerate consumption of travel experiences. Also, the decision to develop 17 iconic tourism sites into world-class tourist destinations will further help in boosting tourism in those regions and at the same time serve as a model for other tourism sites in the country. The launch of railway station modernization programme this year will also attract more travellers and enhance railway travel experience. Crude oil prices have relaxed, however, the cost of Aviation Turbine Fuel (ATF) remains a concern as ATF constitutes around 35 per cent of the total operating costs of an airline in India, while globally it stands at about 25 per cent.
- Rakshit Desai, Managing Director, FCM Travel Solutions, Indian Subsidiary of Flight Centre Travel Group
Union Budget 2019 definitely marks the beginning of the new India. It will give a much needed boost to the Indian travel and tourism sector. With the ongoing UDAN scheme for common man, we can expect better air connectivity, improved infrastructure and bridging of the gap between rural and urban sectors. Another visionary project ‘Sagarmala’ will enhance waterways and port connectivity that will uplift cruise tourism in India. As the government understands the need to invest and improve infrastructure, I am sure this budget will add pace to the economic development of the nation.
- Anil Parashar, President & CEO, InterGlobe Technology Quotient
Union budget for 2019-20 has not demonstrated any will towards the promotion of tourism in India despite the fact that tourism is the biggest employment generator in the country. The Tourism and Hospitality industry was expecting a lowering of GST rates for hotels which are being charged at 28 per cent. Moreover, we were expecting rationalisation of GST and availing of Input credits for hotel from other states as being major relief, but somehow the same has not found a place in the budget.
- Rajat Sawhney, MD, Rave Tours and Travels
There is a lot that the Government could have done in this Budget. There is a dire need for them to look into areas, such as, Development of smart cities in more States, Income Tax exemption on domestic tourism, Inter-State and Intra-State tourism promotion, Industry status for Tourism Industry, to simplify the GST rules and to ensure that the National Tourism Policy is implemented. These are some of the areas in tourism that need immediate attention of our Government.
- P.P. Khanna, President, ADTOI
Budget 2019 is here, and it sure brings in new hopes and opportunities for us. The Honourable Finance Minister has proposed that the Indian railways will use a PPP (Public-Private Partnership) model for faster development and delivery of passenger freight services. At present, there is a massive demand for train tickets. Hopefully, the PPP will enable the railways to add more trains and coaches so there is enough supply of seats to meet this demand. This, in turn, will contribute to industry growth. Currently, only 4 per cent of India is directly connected through railways which comprises of 4 lakh routes. If new trains are added or railway lines are extended, the railway connectivity will increase manifold. For startups, the government finally addressed the Angel Tax issue – startups and investors who file requisite declarations won’t be subjected to any kind of scrutiny in respect of valuation of share premium. This will prevent many startups from closing down due to fund shortage. However, there were no announcements made on providing greater access to finances (working capital loans, credit.
- Dinesh Kumar Kotha, Co-founder & CEO, Confirmtkt
Budget is absolutely neutral, nothing has changed immensely for the Indian travel trade. So from that perspective, I think life is same as 2018, However if the economy does well it’ll further help people to travel as disposable income will increase so I’am definitely confident that the outbound from India will surely increase. - Ankush Nijhawan, MD Nijhawan Group
Very disappointed with the budget today. Tourism Industry has been ignored and neglected – why ? This is an sector / industry which is one of the fastest growing in the country, in the top contributors to the country’s GDP growth, infrstructure creator etc. tourism Industry has always contributed positively to the growth without getting benefits. In spite of Tourism being very dear to the Prime Minister, it stands ignored in the budget ! - Mahendra Vakharia, President OTOAI
Tourism is no longer an important focus of our government . Just by speaking about tourism is not going to make it grow. India is poised to be a 5 trillion USD economy in the next 5 years & we hardly see any strong initiatives for tourism. We were looking forward for the government announcing many more initiatives for the growth like – ease of doing business, zero taxes on domestic tourism, smart cities . The tax rebates for the middle income group is the only thing which may impact the growth of tourism as disposable income will increase. Tourism should be growing infrastructure & not the reverse. - Jyoti Mayal, Hon. Secretary General, Travel Agent Association of India (TAAI)
Budget is absolutely neutral, nothing has changed immensely for the Indian travel trade. So from that perspective, I think life is same as 2018, However if the economy does well it’ll further help people to travel as disposable income will increase so I’am definitely confident that the outbound from India will surely increase.
Very disappointed with the budget today. Tourism Industry has been ignored and neglected – why ? This is an sector / industry which is one of the fastest growing in the country, in the top contributors to the country’s GDP growth, infrstructure creator etc. tourism Industry has always contributed positively to the growth without getting benefits. In spite of Tourism being very dear to the Prime Minister, it stands ignored in the budget !
Tourism is no longer an important focus of our government . Just by speaking about tourism is not going to make it grow. India is poised to be a 5 trillion USD economy in the next 5 years & we hardly see any strong initiatives for tourism. We were looking forward for the government announcing many more initiatives for the growth like – ease of doing business, zero taxes on domestic tourism, smart cities . The tax rebates for the middle income group is the only thing which may impact the growth of tourism as disposable income will increase. Tourism should be growing infrastructure & not the reverse.
