
Tourism Herald compiles here the industry’s reaction on Union Budget 2024-25
Finance Minister Nirmala Sitharaman said that government’s initiatives to promote tourism will promote investment and economic opportunities for other sectors. “Tourism has always been a part of our civilisation. Our efforts to position India as a global destination will also create jobs and unlock opportunities in other sectors. I propose Vishnupath temple at Gaya, and Mahabodhi temple in Bodhgaya are of immense spiritual importance. We will develop corridors there on the model of the successful Kashi Vishwanath corridor to make them a world-class tourist destination. A comprehensive development initiative for Rajgir and Nalanda, in Bihar will be pursued. We will support tourism in Odisha that has scenic beauty, temples, craftsmanship, natural landscapes, wildlife sanctuaries and pristine beaches,” said Sitharaman in her speech.
K.B. Kachru, Chairman Emeritus and Principal Advisor, Radisson Hotel Group South Asia & President – HAI
“Continued focus on infrastructural development, fiscal prudence, and consolidation. Tourism continues to be accepted as an engine of growth for the economy. Emphasis on spiritual tourism, however, no policy changes to expedite growth.
Tourism and hospitality play a crucial role in the growth of the Indian economy. The continued focus on government spending on infrastructure development augurs well for the sector. Improved infrastructure would translate into better connectivity, which will be beneficial to the promotion of tourism. The development of the eastern region, temple corridors in Gaya and Bodhgaya, and identification of Nalanda as a key tourism site continue to demonstrate the government’s intent to utilize the potential of tourism. Regrettably, however there has been no policy announcement to facilitate the development of hotels and promotion of inbound tourism. The announcement of GST simplification, and comprehensive review of the Income Tax Act provides some hope for the sector that has been seeking rationalization of taxes. The benefits to individuals on taxation will augment the spending power. The focus on skilling and incentivizing employers for creating jobs are other positives that will benefit all sectors.
Although not directly linked to this budget, the industry would continue its ask for granting of infrastructure status for the hospitality sector and industry-related benefits by all state governments.”
Rajesh Magow, Co-Founder & Group CEO, MakeMyTrip
“The government’s continued emphasis on infrastructure development is commendable. Enhanced road infrastructure will bolster the travel and tourism sector. We also welcome the initiatives to develop iconic spiritual and cultural sites into world class tourist hotspots.
The decision to reduce the TDS rate on e-commerce operators to 0.1% is a welcome move. Furthermore, the provision of credit for TCS against income tax under ‘Income from Salaries’ is logical and will provide much desired relief to taxpayers who travel internationally.”
Madhavan Menon, Executive Chairman, Thomas Cook (India) Limited (Thomas Cook, SOTC, Sterling Holidays and TCI)
“This year’s Union Budget has opened new doors to development, specifically for domestic and inbound tourism. With the focus on special development funds/ programs for the socio-cultural-religious potential of iconic temple corridors including Gaya’s Vishnupad & Mahabodhi temples into world-class pilgrim and tourist destinations (to be modelled on the success of the Kashi Vishwanath temple corridor), the Government of India’s intent is encouraging. Additionally, the comprehensive development of the Rajgir Jain Temple site; rejuvenation of the historical gem of Nalanda & Nalanda University into a major religious-tourist centre, would have a multi-pronged impact. While positioning India as a vibrant global tourism destination, it will also accelerate job creation and economic opportunities for allied sectors.
The Budget also appreciated the underleveraged potential of Odisha’s tourism industry by supporting the state’s rich heritage-history, spirituality, craftsmanship and natural beauty.
Recognizing the high potential domestic cruise segment, the Union Budget announcement proposed a simpler tax regime to support/incentivize foreign cruise companies operating in India’s waters.
We’re optimistic about the significant allocation of INR 11.11 lakh crore (constituting 3.4% of India’s GDP) towards infrastructure development. The development of road, rail, air, and waterways will ensure a boost to access/connectivity and affordability, and force multiplier benefits for tourism and allied sectors.
When introduced, TCS was considered disadvantageous to salaried employees as their cash flows were negatively impacted. Post the Budget announcement, salaried employees can now avail of immediate credit of TCS paid on account of their foreign travel – against TDS on salary, enhancing the purchasing power of Indian consumers.
The discontinued SEIS scheme should have been reinstated, as this is meaningful towards encouraging inbound tourism, foreign exchange receipts and a force multiplier for employment generation.
We are disappointed to note that key pillars in India’s Tourism agenda – Aviation & Hospitality were not mentioned as part of the Budget and both standardisation of GST rates on hotel tariffs to 12% and the reduction of ATF remained unaddressed.”
Nikhil Sharma, Managing Director and Area Senior Vice President- South Asia, Radisson Hotel Group
“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.”
Anil Parashar, Chair – Tourism & Hospitality Committee, PHDCCI
“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.”
Shikhar Aggarwal, JMD, BLS International
“We commend the government’s visionary Budget 2024 announcement, particularly its focus on enhancing tourism infrastructure at Vishnupad Temple, Mahabodhi Temple, and Nalanda in Bihar, following the successful Kashi Vishwanath Temple model. The additional support for Odisha’s tourism development underscores a strong commitment to leveraging India’s rich cultural heritage for economic growth.
These strategic investments are set to elevate Nalanda, Gaya, and Odisha, positioning them as central to India’s tourism renaissance. By encouraging travelers to visit these historic and spiritual sites, we’re not just celebrating our cultural legacy—we’re also stimulating local economies and creating numerous job opportunities.
At BLS International, we are excited to support and contribute to this transformative journey. We believe these reforms will unlock the full potential of India’s cultural gems, inviting the world to rediscover and forge lasting connections with our storied past and vibrant present. As a leading provider of visa services, we are fully prepared to facilitate seamless travel experiences for tourists worldwide, fostering global connections and bolstering India’s economic growth.
We wholeheartedly support these initiatives and are unwavering in our commitment to playing a pivotal role in welcoming the world to explore India’s unparalleled heritage and beauty.”
Manoj Bhat, MD & CEO, Mahindra Holidays and Resorts India
“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.”
Chirag Agrawal, Co-Founder, TravClan
“The Finance Minister’s proposals to develop tourism corridors at Vishnupad Temple and Mahabodhi Temple, along with support for Nalanda as a tourist hub, represent a positive leap towards enhancing India’s tourism infrastructure. These initiatives could stimulate local economies and attract more visitors, promising substantial growth for the travel and tourism sector.
At TravClan, we believe that integrating these developments with advanced technology is crucial. Incorporating digital tools for better visitor management and promoting seamless travel solutions could significantly enhance their impact.
While the focus on Odisha’s tourism is commendable, a more comprehensive strategy that leverages technology to address the needs of modern travel agents and improve domestic tourism efficiency would be even more beneficial. The economic policy framework for next-generation reforms is a step in the right direction, but practical implementations will be key to fully realising these goals.
Overall, the budget shows great promise for the tourism sector, and adopting innovative solutions could amplify benefits and drive sustainable growth in the industry.”
Rajan Sehgal, Co-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.”
Aditya Sanghi, CEO & Co-Founder, Hotelogix
“The 2024 budget introduces impactful initiatives for the tourism sector, poised to enhance India’s global appeal as a tourist destination significantly. The government’s decision to promote Nalanda and Orissa, along with the focus on religious tourism, reflects a strategic and holistic approach that will drive economic growth and showcase India’s rich heritage.”
Kapil Raizada, Co-founder, IntrCity SmartBus
“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 travelers, 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. Overall, these infrastructure investments will enable bus services to play a crucial role in India’s economic growth, providing efficient, comfortable, and affordable transportation options for both regular travelers and tourists alike.”
Aloke Bajpai, Chairman, MD & Group CEO, Ixigo
“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.”