The Union budget has shown positive signs for the Hospitality, Travel, and Tourism industries, the Union Finance Minister Nirmala Sitharaman has encouraged the states to set up a ‘Unity Mall’ in the state capital or at an attractive tourist destination in the state for the promotion and sale of ‘One District, One product’ (ODOP) and Geographical Indication (GI) products along with other handicrafts.
While the Minister announced 50 tourist destinations will be selected and developed as a whole package for domestic and international tourism, the overall development with this vision is an impetus to the sector. The FM Sitharaman stated, “Dekho Apna Desh’ initiative was launched by the Prime Minister to the middle class to prefer domestic tourism over international tourism whereas ‘Swadesh Darshan Scheme’ was launched for integrated development of theme-based tourist circuits”. Moving towards, emboldening the active participation of states, convergence of government programmes and public-private partnerships. The future seems bright and an exciting one with 50 additional airports, and helipads to be revived to increase connectivity with the budget of 3,114 crores to the union civil aviation ministry. This will further increase the passenger movement and boast the hotel room inventory across the region which will increase employment opportunities and parallelly uplift the community, promoting sustainable tourism.
Mr. Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Limited
The proposal in the Union Budget 2023, to increase the rate of TCS from 5 to 20 per cent for purchase of overseas tours & overseas remittances other than education will significantly increase the upfront cash outflow for end customers. It will drive more of these customers to use alternate channels that are outside the domestic tax net. We urge the Government to reconsider this.
On the positive side:
- Income tax rebates announced in the budget will result in an increase of disposable incomes which is welcome.
- Tourism promotion being taken up on a “mission mode”- with active participation of states, public-private partnerships and convergence of government programs will drive domestic tourism growth.
- Strong infrastructural focus in the announcement of 50 new airports, heliports, water aerodromes and revival of advanced landing grounds will enhance regional access and connectivity.
- Financial support via loans to be provided to states for developing enhanced road and rail connectivity will help uplift of the domestic tourism sector.
- The selection of 50 destinations to be developed as holistic tourism packages – combined with the focus on local level tourism & the promotion and sale of GI products & handicrafts will give a boost to local arts and artisans.”
Mr. Vishal Suri, Managing Director, SOTC Travel Limited.
The Union Budget 2023-24 presented by Hon’ble Finance Minister provides a positive focus on infrastructural development/investment, digital enhancements, sustainability, agriculture, domestic tourism. We appreciate the Government’s plan of continued focus on domestic tourism, railways, new airports, heliports, water aerodromes that will improve regional connectivity and be one of the key drivers of the domestic tourism sector.
Further the announcement on the launch of an app to enhance domestic tourism experience reiterates our country’s focus on digitization. The ‘Dekho Apna Desh’ initiative focusing on sector specific skilling and entrepreneurship development while the facilitation of tourism infrastructure under the Vibrant Villages Programme, and setting up a ‘Unity Mall’ in state capitals/ popular tourist destinations to promote ‘One District, One product’ for GI products and other handicrafts will strongly support domestic tourism.
The travel & tourism industry supports one in 10 jobs and provides livelihoods for a significant number of people, therefore the Government’s support on prioritizing tourism with active participation from local authorities, sustainable practices and encouraging public-private partnerships is a positive pivot towards revival/road to recovery.
However this Union Budget did not provide the travel & tourism industry the respite we anticipated with respect to rationalization of taxes. Instead the proposals increased TCS on outbound travel and other LRS transactions from 5% to 20% without any threshold exemption. In our view, such high rates of taxation are an added liability to outbound travelers and negatively impacts tour operators recovering from the pandemic. We request the Government to reconsider this proposal.
We also hoped this budget would offer elimination of the 5 crore capping for the SEIS benefit and incentives to Corporates for organizing meetings and conference in India through partial or full tax exemptions.
Mr. Paritosh Ladhani, Joint Managing Director, Sincere Developers, which owns Taj Hotel & Convention Centre Agra.
The Union Budget 2023-2024 presented by the finance minister (Nirmala Sitharaman) highlighted that the Indian economy is on a growth trajectory in spite of the global economic challenges. In her Budget speech, the FM emphasized that the country offers “immense attraction” for both domestic and international tourists. With the government announcing that states will be encouraged to set up a “Unity Mall” in the capital city or most popular tourist destination for the promotion of ‘One District, one product’ theme, such initiatives will help to unleash the potential vested in the tourism sector. I also expect that the change in tax regime announced in the Union Budget will result in more disposable income in the hands of middle-class consumers – which I expect ultimately will spur consumption in activities like travel. Regional connectivity will see a boost with the plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds.
Mr Kush Kapoor, CEO, Roseate Hotels & Resorts
Honourable FMs push for the tourism sector is a great booster for the Indian hospitality industry. While post pandemic there has been a significant increase in domestic tourism’s contribution to luxury hotels, ‘Dekho Apna Desh’ campaign will further add to the momentum. The government’s focus on tourism promotion is evident in their opening up opportunities for joint participation of the states and private players in Government programs via the PPP mode. This will be a major driver for growth to tourism across India. Further, the development of 50 new airports and 50 destinations through challenge mode to develop a consolidated package for both domestic and international tourism also augurs well for India’s hospitality industry that has long grappled with infrastructure bottlenecks.
Mr.Teja Chekuri, Managing Partner at Ironhill India
We were hoping that in this budget, some critical issues such as the introduction of ITC (input tax credit), liquidity focused credit lines and single window clearance for all restaurant licenses will be looked into. It would have helped if the government would, have addressed the issue of unemployment in the hospitality sector and introduced healthy regulations in place to improve the ease of doing business and helped to generate employment in the sector.
Mr. Asif Fazlani, Managing Director, Fazlani Nature’s Nest
The government’s focus on tourism in the budget by giving it a top priority is commendable. The allocation of resources highlights the importance placed on boosting employment through the tourism sector. The budget demonstrates the government’s commitment to the holistic development of the industry. The plan to develop 50 tourist destinations for both domestic and international tourists will revolutionize the tourism industry in India.
Mr. Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts.
The Union Budget 2023-2024 presented by the Finance Minister (Nirmala Sitharaman) is a growth-oriented one aimed to help India weather the current global economic challenges. With the FM announcing plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds, it will boost regional connectivity. Moreover, the announcement to develop 50 destinations for domestic and international tourists will also help to draw attention to the country’s tourism and hospitality sectors. The Finance Minister said that these tourist destinations will be selected through challenge mode. The impetus on Dekho Apna Desh will provide a further boost to the growth of domestic tourism in the country. The FM also highlighted that states will be encouraged to set up a “Unity Mall” in the capital city or most popular tourist destination for the promotion of the ‘One District, One product’ theme. Such initiatives will also help unleash the potential taped in the tourism sector.
Mr Vineet Verma, Director, Brigade Hospitality
A special mention on Tourism, by the Hon’ble FM, has been a most welcome gesture. An acknowledgment that Tourism is indeed critical to our economic growth, is encouraging and bodes well for the industry. We welcome the measures announced to further promote tourism and to identify 50 projects for last mile connectivity improvement. The addition of 50 airports, heliports and waterdromes should also benefit the sector. Overall, a satisfactory start but more such initiatives are expected in the days ahead.
