
Key Budget 2025-26 announcements for the Travel & Tourism Sector
Medical & Spiritual Tourism Boost
• Easier visa norms, including e-visa facilities & visa fee waivers for select countries
• Private sector collaboration to enhance medical tourism
• Spiritual tourism & wellness identified as key focus areas
• Job creation in tourism-driven sectors
• 22 key destinations to be developed with state governments
UDAN Scheme Expansion
• 1.5 crore travelers connected across 88 airports
• 619 routes operational
• Now expanding to 120 new destinations for better regional connectivity
Patna Airport Expansion
• Increased passenger capacity for smoother travel
• Boost to regional tourism & economic growth
• Part of nationwide airport modernization efforts
Development of 50 Top Tourist Destinations
• Challenge mode partnership with state governments
• Strengthening India’s tourism infrastructure
• MUDRA loans for homestay businesses to promote local tourism
Greenfield Airports in Bihar
• Strengthening regional connectivity
• Stimulating economic & tourism growth
TCS Threshold Increased on LRS Remittances
• Threshold for Tax Collected at Source (TCS) on remittances under RBI’s Liberalised Remittance Scheme (LRS) increased from ₹7 lakh to ₹10 lakh
• This change benefits outbound travelers, easing financial transactions abroad
Positive Impact on Tourism & Hospitality Industry
• Increased focus on medical & spiritual tourism expected to benefit hotel chains like Indian Hotels Company, EIH Limited, Lemon Tree Hotels, Royal Orchid Hotels, and Juniper Hotels
• Luggage industry players like VIP Industries & Safari Industries to gain from rising travel demand
The Union Budget 2025 lays out a roadmap for India’s growth, emphasizing tourism, infrastructure, taxation, business reforms, and social welfare. A major highlight is the development of 52 new tourist destinations, strengthening India’s position as a global travel hub. With a focus on Buddhist tourism, medical and wellness tourism, and enhanced MICE infrastructure, the budget aims to drive more international traffic. Connectivity enhancements under UDAN, with 120 new routes, will make remote destinations more accessible, boosting domestic tourism and regional economies.
The budget also brings relief for the middle class, with no income tax up to ₹12 lakh under the new tax regime, increasing disposable income and supporting domestic and outbound tourism. Tax compliance is made easier by extending the time limit for filing updated returns to four years. Businesses and startups receive a push, with the period for startup incorporation extended to five years for availing tax benefits, and MSMEs getting higher credit limits to fuel their growth. The government also proposes simplifying the income tax code, reducing litigation and ensuring a more taxpayer-friendly system.
Investment in infrastructure is a priority, with ₹10.18 lakh crore allocated for capital expenditure. The Maritime Development Fund of ₹25,000 crore will support shipbuilding, while an Urban Challenge Fund of ₹1 lakh crore will focus on city redevelopment. To strengthen healthcare, the government has exempted customs duty on 36 life-saving medicines, set up cancer centers in all district hospitals, and announced healthcare coverage for one crore gig workers.
With a strong push towards ease of doing business, digital transformation, and self-reliance, this budget sets the foundation for India’s economic growth. By investing in tourism, infrastructure, and social welfare, while ensuring fiscal discipline, the government paves the way for a prosperous and globally competitive India.
Industry Reactions:
Rajiv Mehra, President, IATO:
IATO thanked the Hon’ble Finance Minister for recognizing the role of tourism in driving economic growth and employment generation. Mr. Rajiv Mehra, President of IATO, expressed gratitude for the development of 50 new tourist destinations in collaboration with state governments, enhancing India’s global standing. Special attention will be given to Buddhist destinations to promote spiritual tourism and attract domestic and international visitors. The introduction of Mudra loans for homestays, the “Heal-in-India” initiative for medical tourism, and funds for technological innovation and startups were also welcomed. Additionally, the expansion of the UDAN scheme and the introduction of visa fee waivers and e-visa options for select tourist groups are expected to boost tourism. However, Mr. Mehra highlighted the absence of any mention of rationalizing taxes or granting tourism the export industry status, a long-pending request from IATO based on foreign exchange earnings, and expressed hope that these issues will be addressed by the GST Council.
Aashish Gupta, Consulting CEO, FAITH:
“The Union Budget demonstrates a progressive intent with a strong focus on Investment in Tourism for Employment-led Growth. The development of 50 new tourist destinations in partnership with states under the challenge mode, the creation of hotel room supply under the Infrastructure list, and performance-linked incentives for effective destination management are positive steps. Additionally, the waiver of e-visas for special tourist groups and the focus on medical and Buddhist tourism under the ‘Heal in India’ initiative will likely boost inbound tourism. The proposed Mudra loans for homestays and the extension of the UDAN RCS scheme to 120 destinations will further democratize tourism across India. The proposed changes in direct tax codes will also have a positive impact on tourism spending, enhancing the disposable income of citizens.”
Mr. Chander Mansharamani, Vice Chairperson, ICPB:
“The Union Budget 2025 is a commendable step towards strengthening India’s tourism industry, with the development of 52 new destinations, improved connectivity under UDAN, and a strong focus on Buddhist, medical, and wellness tourism. These initiatives will not only enhance India’s appeal as a global travel destination but also open new avenues for the MICE (Meetings, Incentives, Conferences, and Exhibitions) industry.
As India continues to invest in tourism infrastructure and simplify travel procedures, it is crucial to recognize the economic and social impact of the MICE sector. The industry contributes significantly to business tourism, employment generation, and overall economic growth.
We at ICPB urge the government to prioritize the MICE industry within the tourism framework, ensuring policies and incentives that position India as a leading global MICE destination. With strategic initiatives, India has the potential to become a preferred hub for international conferences, exhibitions, and corporate events, driving long-term growth and positioning the country as a powerhouse in the global meetings industry.”
K Syama Raju, President of FHRAI:
“The focus on developing 50 destinations in partnership with state governments will boost infrastructure and spread tourism across the country. The inclusion of hotels in the harmonized master list is a great move, granting easier access to financing for upgrading facilities. The ‘Heal-in-India’ initiative is a forward-thinking step to capitalize on India’s reputation in medical tourism. The visa fee waivers and e-visa options will make India even more attractive to international visitors.”
Vaibhav Kala, Sr. Vice President, ATOAI:
“The Union Budget’s focus on investment in tourism for employment-led growth is commendable. With the proposed development of 50 new tourism destinations and the performance-linked incentives for states to manage existing destinations effectively, India is setting itself up to become a global tourism hub. The e-visa waiver for special tourist groups and the support for alternative accommodation models like homestays are key to stimulating inbound tourism. The expansion of the UDAN RCS scheme to cover 120 destinations, including remote and hill routes, will also improve connectivity and bring tourists to even the most remote corners of the country. Moreover, the proposed changes in shipbuilding should have a positive impact on cruise tourism, opening up new avenues for growth.”
Ravi Gosain, Vice President, IATO:
“While strengthening infrastructure for tourism growth is important, the Union Budget still lacks concrete plans and funding for promoting tourism abroad. While there are many positive initiatives domestically, such as developing new destinations, improving connectivity, and providing financial support to homestays, the government must prioritize an aggressive, comprehensive plan for promoting India internationally. If we want to increase foreign tourist arrivals, there needs to be a larger budget and a more focused approach on overseas promotion. We need a global strategy to raise India’s profile as a prime tourist destination.”
Shreeram Patel, Hon. Secretary General, TAAI
“The budget raises the income tax threshold, aiming to boost savings and consumption among the middle class. This increase in disposable income may lead to higher spending on travel and tourism services. Air connectivity to 120 new destinations over the next decade is expected to make travel more accessible and attractive, potentially increasing both domestic and international tourism. In summary, while the 2025 budget introduces initiatives that could bolster the travel and tourism industry through infrastructure development and increased consumer spending, certain industry expectations remain unaddressed, potentially affecting the sector’s overall growth trajectory.”
Ajay Prakash, President of TAFI, Vice Chairman of FAITH, and Global President of IIPT:
“fairly positive” for tourism. He noted that tourism was mentioned multiple times, with key highlights including more airports, especially in Bihar, expansion of the UDAN scheme to 120 destinations, and the development of 50 new tourist spots with state incentives. Granting infrastructure status to hotels in these areas is a welcome move. Improvements in the e-visa process and potential visa fee waivers for certain groups are also positive steps. He emphasized the significance of religious tourism, particularly the Buddhist circuit, and appreciated initiatives like Medical Tourism and ‘Heal in India.’ The TCS threshold increase to ₹10 lakh and tax relaxations could boost disposable income, benefiting tourism. However, effective coordination between the Centre and states is essential. Unlike previous years, he stated he wasn’t disappointed with the budget”
Jyoti Mayal, Former President, TAAI, Chairperson THSC
“The 2025 Union Budget sets a strong foundation for India’s tourism sector, with key initiatives like expanding the UDAN RCS scheme to 120 destinations and the development of 50 key tourist sites. These moves will improve regional connectivity, boost investments, and create jobs. The ‘Heal in India’ initiative and streamlined visa norms position India as a global hub for wellness and medical tourism. MUDRA loans for homestays, performance-linked incentives, and e-visa fee waivers will support local businesses and broaden tourism access. The focus on skilling, especially in hotel management, will elevate service standards and create more employment. However, critical concerns such as restoring GST input credit, abolishing TCS, and granting industry status to tourism remain unaddressed. While the ₹33 crore for international tourism marketing is a step forward, a stronger push in global branding is needed. The budget reinforces tourism’s economic role but requires more industry reforms for sustained growth.”
Amaresh Tiwari, ICPB:
“The Union Budget lays a strong foundation for India’s tourism growth with the development of 52 new destinations, a boost to the Buddhist circuit, and enhanced medical and wellness tourism through easier visa policies. The increased support for women entrepreneurs and improvements in connectivity under UDAN are also commendable. These initiatives will undoubtedly strengthen tourism infrastructure, making India a more attractive destination for both domestic and international travelers. Additionally, the increased disposable income among the middle class will likely lead to higher tourism spending, benefiting both domestic and outbound tourism.”
Sanjeev Joshi , SITE India:
“I welcome the Union Budget and appreciate the government’s continued focus on infrastructure and economic growth. However, the tourism and MICE sectors require more targeted support to unlock their full potential. While investments in connectivity and hospitality are positive steps, there is a need for concrete incentives, lower taxation, and enhanced marketing efforts to position India as a global MICE destination. A robust policy framework and increased budgetary allocations would help the industry recover faster and contribute significantly to GDP and employment. The government must prioritize tourism and MICE with structured initiatives to ensure sustained growth and global competitiveness. We look forward to stronger measures in the future.”
Shagun Sethi, SITE India Chapter Member:
“We welcome the Union Budget and appreciate the government’s vision for tourism. The focus on infrastructure and economic growth is encouraging, but a more structured approach toward the MICE sector is essential. While initiatives like “Heal in India” have been highlighted, “Meet in India” and “Wed in India” were not given due attention. A well-defined policy framework for these sectors would significantly uplift tourism and position India as a premier destination for global events. Targeted incentives, marketing support, and ease of doing business in MICE would drive growth. We hope the government introduces concrete measures to strengthen these areas, ensuring India’s tourism sector reaches its full potential.”
Lucas Ramos, Senior Director, Travel & Membership – Asia, Pacific & India, RCI:
“The Union Budget 2025 underscores the Indian government’s commitment to positioning tourism as a key pillar of economic growth, job creation, and global engagement. By developing top destinations in partnership with states, enhancing medical tourism through the ‘Heal in India’ initiative, and introducing visa reforms, India is strengthening its appeal as a world-class travel and healthcare hub. The inclusion of hotels in the harmonized scheme and visa waivers for select foreign tourists further reinforce a comprehensive, future-ready travel ecosystem. With strategic policy alignment and private sector collaboration, this budget paves the way for India to become a more accessible, competitive, and thriving global destination.”
Pieter Elbers, CEO, IndiGo:
“The Union Budget 2025 has outlined various great initiatives to further develop a future-ready travel ecosystem, with emphasis on people and infrastructure, and aviation as a key enabler. Investment in developing world-class airports, enhancing regional connectivity, capacity upgrades, procedures, regulatory framework and streamlined visa facilities, will all play critical role in bringing this vision of developing India into a global aviation hub to life. By strengthening both domestic and international connectivity, we are fueling economic progress, bridging communities, and reinforcing aviation’s role as a catalyst for national growth and collectively building India as a leading global economic powerhouse.”
Arun K Chittilappilly, Executive Chairman & MD, Wonderla Holidays Ltd
“The Union Budget 2025’s focus on tourism is a visionary step toward strengthening India’s travel landscape. Developing 50 top destinations with state collaboration, enabling land and hotel projects, and introducing MUDRA loans for homestays will boost infrastructure, employment, and sustainable tourism. E-visa extensions and visa fee waivers further enhance accessibility for global travelers. Additionally, tax reforms, including TDS rationalization and higher income exemptions, will increase disposable income, encouraging greater discretionary spending—especially among Gen Z. These measures position India as a global tourism hub while driving economic growth.”
Anuj Rathi, Chief Business and Growth Officer, Cleartrip
“India’s travel industry is poised for growth, with the government’s focus on infrastructure, sustainable tourism, and medical tourism. The expansion of UDAN, the development of 50 key tourist destinations, and support for homestays offer significant opportunities. Cleartrip aims to leverage these efforts to provide seamless, affordable travel experiences for all.”
Aloke Bajpai, Group CEO, ixigo
“We are pleased that the government will continue to prioritize the UDAN scheme to enhance regional air connectivity, benefiting travelers from Tier 2 and Tier 3 cities. It’s great to see a focus on developing greenfield and brownfield airports in Bihar and the expansion of Patna airport. For a population of 120+ million, Bihar had only three operational airports, so this development is essential to meet the rising demand for air travel, support first-time flyers, and accommodate the region’s growing air traffic. The government’s commitment to developing 50 new tourist destinations, with a special emphasis on spiritual sites, will further drive domestic and inbound travel growth. Spiritual tourism has seen strong growth over the past two years, with bookings to destinations like Varanasi, Gaya, Shirdi, Puri, Haridwar, and Vaishno Devi increasing by 100-150% YoY on ixigo last quarter. Initiatives like visa fee waivers and e-visa options for select tourist groups will further enhance India’s appeal as a global destination, making travel more accessible and boosting inbound tourism.”
Pronab Sarkar, Managing Director, Swagatam Tours Pvt. Ltd.:
“Despite submitting our concerns to the Ministry of Tourism and Ministry of Commerce to boost inbound tourism, we are disappointed by this year’s budget. The focus is primarily on domestic tourism and to a lesser extent, outbound tourism. Our key demand for an enhanced marketing budget to promote India abroad, through roadshows and exhibitions, has been ignored, with the marketing budget reportedly reduced from 30 crores to just 3 crores. This cuts foreign promotion efforts, leaving it to individual states to handle, which undermines the unity of the ‘Incredible India’ brand. While domestic tourism and workforce skilling are positive steps, the lack of support for inbound tourism is troubling. The Government’s initiative for startup loans is commendable, but the tourism industry needs similar soft support. Tourism is vital for foreign exchange and job creation, and with Government support, it can grow back to pre-COVID levels.”
Himanshu Patil, President, OTOAI & Director, Kesari Tours
“For aviation, the budget has announced many positive developments regarding the expansion of the UDAN scheme and infrastructure, which is a good sign for the domestic sector. However, on the outbound front, we are a bit disappointed as the TCS issue remains unresolved. The threshold has only been increased from ₹7 lakh to ₹10 lakh per annum. As an association, we made representations to both the Tourism Ministry and the Finance Ministry, requesting relief on the TCS slab structure to ensure a level playing field. Currently, TCS is not charged on credit card payments or when booking through a domestic agent, which creates an imbalance. While we expected some relief, overall, this is a middle-class-centric budget that will benefit them. The tax-free income savings for the middle class may lead to increased travel spending, helping the travel industry thrive.”
Mr. Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts:
“The strategic emphasis on tourism is a welcome move that will significantly boost India’s hospitality industry. The development of 50 key destinations under challenge mode, along with streamlined e-visas and visa-free access for select tourist groups, will drive international footfall and enhance India’s global appeal. The inclusion of new hotels in 50 key destinations in the infrastructure harmonized list (HML) for easier infrastructure lending is a step in the right direction. This will offer access to larger amounts of funds and facilitate faster project implementation. The enhanced focus on the Buddhist Circuit also presents immense opportunities for hospitality expansion, with the potential to create quality accommodations and travel experiences. Additionally, skill development initiatives through IHMs and financial support for homestays via Mudra loans will strengthen the sector.”
Shikhar Aggarwal, JMD, BLS International, on Union Budget 2025:
“The government’s strategic focus on tourism, from developing 50 iconic destinations to streamlining visas and expanding medical tourism through ‘Heal in India,’ is a visionary step. At BLS International, we welcome these reforms, as they align with our expertise in seamless visa and consular services. The extension of MUDRA loans to homestays and infrastructure support for hotels will empower local entrepreneurs while enhancing hospitality standards. The emphasis on Buddhist and spiritual tourism opens new avenues for niche travel, which we are well-positioned to facilitate. Strengthening public-private partnerships and fostering tourism as an economic driver will attract global travelers and elevate India’s status in cultural, medical, and sustainable tourism. BLS International remains committed to supporting this transformation through innovative, tech-driven solutions, enhancing accessibility and connectivity for travelers worldwide.”
Dinesh Yadav, Founder and MD of Fine Acers:
“The government’s commitment to developing the top 50 tourist destinations in collaboration with states is a major step in strengthening India’s hospitality infrastructure. The Mudra loans for homestays will stimulate private investments, and the focus on medical and Buddhist tourism will diversify India’s tourism products. This marks the beginning of an opportune period for long-term investments in the hospitality industry.”
Davinder Juj, General Manager, Eros Hotel,New Delhi, Nehru Place:
“The Union Budget 2025 presents promising opportunities for the travel and hospitality sectors. The Finance Minister’s emphasis on positioning India as a spiritual destination will boost international tourism, especially among Non-Resident Indians, through initiatives highlighting Lord Buddha and Lord Ram. The focus on land acquisitions for hotel development is set to attract foreign investments, fostering growth in the hospitality industry. Additionally, the reduction in visa fees for medical tourism is a welcome step, benefiting hotels financially. The allocation of Rs 20,000 crore for tourism-related employment will enhance infrastructure and connectivity in key tourist destinations, further strengthening the sector. These measures collectively create a strong foundation for increasing foreign tourist arrivals and boosting the Indian economy. By driving investments, improving accessibility, and promoting India’s rich heritage, this budget provides significant momentum for the hospitality, travel, and tourism industries, ensuring long-term sustainable growth.”
Pranav Dangi, Founder and CEO, The Hosteller:
“The Union Budget 2025 presents a robust vision for tourism, emphasizing infrastructure development and support for homestays through Mudra loans. The inclusion of 50 new tourist destinations will enhance India’s position as a global travel hub. These measures set the stage for India to emerge as a top global destination for travelers.”
Arun Bagaria, Co-Founder & CEO, TravClan:
“TravClan welcomes the budget’s focus on tourism as a key engine for economic growth. The plans to develop 50 destinations, enhance e-visa facilities, and introduce visa fee waivers are encouraging steps that will strengthen India’s global appeal and foster sustainable growth within the travel industry.”
Devndra Chawla, CEO & MD, GreenCell Mobility:
“GreenCell Mobility applauds the government’s commitment to advancing the EV sector and promoting sustainable tourism. The focus on regional connectivity and tourism infrastructure will encourage more eco-friendly travel options, driving tourism to new destinations and contributing to a greener, more connected nation.”
Simranjeet Singh, Director, CYK Hospitality:
“The Union Budget 2025 will reshape the F&B consultancy and hospitality sectors. The expansion of credit guarantee coverage will provide better financial support for startups and small enterprises. The new credit ecosystem, especially for women entrepreneurs, will diversify the industry and promote inclusivity, fostering accelerated growth and innovation.”
Ranjana Sharma, CEO, Trav N Tours International:
“This Union Budget holds immense significance for the hospitality industry, which has long awaited key policy changes to drive its recovery and growth. Noteworthy developments include the focus on the top 50 tourist destinations, particularly those linked to Buddha, which will enhance India’s appeal as a spiritual destination. The promotion of ‘Heal in India’ is a great step towards boosting medical tourism and fostering growth in the sector. Additionally, the removal of the Tax Collected at Source (TCS) on remittances for educational purposes will make India a more attractive destination for international students. A major highlight is the significant boost for Bihar, which is poised to emerge as a key tourism hub. These measures, aimed at improving infrastructure, accessibility, and international visibility, will undoubtedly accelerate the growth of the travel and hospitality industries.”
Ambika Saxena, CEO, TWH Hospitality:
“This year, the government has presented a well-balanced and growth-oriented budget, specifically supporting the tourism and hospitality sectors. The modified Udaan scheme will open doors for the hospitality sector by bringing new tourist destinations into the spotlight. Hotels, resorts, and homestays in unexplored regions will see a surge in demand, encouraging further investment and development. With the government’s push for connectivity and including new 120 destinations, we expect a stronger pipeline in the hospitality sector, catering to both business and leisure travellers in emerging tourism hotspots.”
Yogesh Mudras, Managing Director of Informa Markets in India:
“The Union Budget 2025 presented a progressive roadmap that prioritises infrastructure, economic growth, and regional connectivity. The government’s continued emphasis on regional development and tourism-friendly policies will have a far-reaching impact on multiple sectors, including travel and tourism. The modified Udaan scheme, in particular, is a landmark initiative that will strengthen India’s position as a global tourism hub. The scheme has already benefited 1.5 crore middle-class travellers, and the expansion of the scheme to include 120 new destinations is a game-changer for regional connectivity. With increased accessibility, we anticipate a surge in domestic tourism and business travel, providing a major boost to the tourism industry.”
Aditya Pande, Group Chief Executive Officer, InterGlobe Enterprises:
“This budget outlines a compelling roadmap for a Viksit Bharat. The focus on boosting consumption through targeted tax relief for the middle class, coupled with the government’s commitment to streamlining tax procedures, will significantly improve ease of doing business and unlock further economic potential. At InterGlobe Enterprises, we are particularly encouraged by the strategic investments and vision for strengthening the holistic tourism ecosystem in the country, with the development of infrastructure and focus on skilled workforce. These initiatives lay a solid foundation for sustained economic progress and a brighter future for the country.”
Arshdeep Anand, VP, ATOAI:
We welcome the government’s strong focus on tourism in the Union Budget 2025-26, particularly initiatives aimed at infrastructure development, regional connectivity, skill enhancement, and financial support for homestays. The planned upgradation of the top 50 tourist destinations, the development of Buddhist sector and the expansion of the UDAN scheme are significant steps that will boost domestic and inbound travel. The “Heal in India” initiative, which promotes medical and wellness tourism, also aligns well with nature-based and adventure experiences, making activities like trekking, yoga retreats, and eco-tourism more appealing. We look forward to collaborating with policymakers to ensure that adventure tourism gets the recognition and support it deserves, ultimately making India a world leader in thrilling, sustainable, responsible, inclusive & safe tourism experiences.
Pushpendra Bansal, COO, Lords Hotels & Resorts:
The hotel industry’s demand for infrastructure status has been partially met, with the government granting it to only 50 destinations. However, the move to streamline the e-visa system and introduce visa-free waivers for select countries is a positive step. These measures are expected to enhance inbound tourism, making travel to India more convenient and attractive for international visitors. Initiative to organize intensive skill-development programs for youth, including those in Institutes of Hospitality Management, is a commendable step. This will help create a skilled workforce, enhance employability in the hospitality sector, and contribute to the industry’s overall growth and service standards. The Heal-in-India initiative effectively capitalizes on India’s advantages in providing affordable and high-quality healthcare by promoting medical and wellness tourism. Moreover, performance-based initiatives for states have the potential to greatly enhance India’s tourism sector by improving infrastructure, cleanliness, and the quality of services.
“The announcements made in the Union Budget 2025 regarding India’s tourism and hospitality sectors are progressive and in the right direction. Improving ease of travel and connectivity to tourist destinations is a strategic initiative that will greatly benefit the tourism sector. It has the potential to boost both domestic and international tourism, while also driving economic development. The emphasis on medical and wellness tourism through the Heal-in-India initiative is a progressive step that will strengthen India’s position as a global leader in healthcare. We believe these implementations will play a pivotal role in the overall economic development.”
Ms. Sonal Sahoo, Director and Co-founder of Lyfe Hotels and Resorts Bhubaneswar:
“The 2025 Union Budget has a few prominent provisions for boosting the tourism and hospitality sector. The plan to develop 50 new tourism destinations in collaboration with state governments is very exciting. This will help attract hoteliers to invest and open more destinations for the travelers. Additionally, the budget also has a modified UDAN scheme which can further enhance connectivity to the destinations. It also highlights the making of streamlined e-visa and visa free access for select travel group which will help in driving international footfall. The strategic focus on promoting medical and spiritual tourism through the “Heal in India” initiative is also a great initiative. The total budget allocation for tourism has increased significantly to ₹2,541 crore from ₹850 crore, which is very encouraging.”
Prateek Hira (President & CEO Tornos):
The Indian government has unveiled the Union Budget for the fiscal year 2025-2026. Within the positive announcements by the Finance Ministry that include relaxation in visas for some countries, a focus on 50 tourist destinations, an infrastructure push and a few other initiatives, there is also a deep wound that has been inflicted on the tourism industry, particularly the inbound sector. The budget includes only a slight increase of 4% in the allocation for tourism, which is less than India’s inflation rate, but the worst part, which will have a ramification on the already bleeding inbound sector, is that the international marketing budget for tourism has been reduced to Rs.30 million, a reduction of 97% of the already minuscule budget that India had for international tourism marketing. Interestingly, Rs.30 million is the budget of many mid-size and large companies for their own marketing and promotions. This move of the Indian government is beyond anyone’s understanding and only points to the fact that India does not want inbound tourists or wants to earn foreign exchange through tourism. The move is in stark contrast to what the government of India speaks at different forums regarding making India a global hub and doubling its foreign tourist arrivals. In this budget, there was no mention of the tourism board, which is an incomplete exercise and could have set many issues right. After the closure of international tourism offices and with no proper marketing strategy in place, the tourism board could have been a savior. The granting of industry status to tourism and incentivising foreign exchange earnings through tourism for inbound operators was also not addressed in this budget. For the inbound tourism industry this budget has nothing to rejoice or to be happy about.
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