The Union Budget 2023-24 highlighted tourism as one of the major sectors contributing to the overall economy of the country.
Finance Minister Nirmala Sitharaman Said that there are huge opportunities for jobs and entrepreneurship in this sector especially for the youth and said that work will be done on mission mode to promote tourism with active participation of states, convergence of government programs and public-private partnership.
Out of total Rs. 2400 crores allocated to the Ministry of Tourism, a major part of the outlay amounting to Rs. An amount of Rs 1742 crore has been allocated for the development of tourism infrastructure. 242 crores for promotion and branding.
Outlay of Rs. Rs 1412 crore has been allocated for Swadesh Darshan Yojana, the flagship scheme of the Ministry of Tourism.
The ministry has earmarked an allocation of Rs. Under this year’s budget allocation, Rs 229 crore for tourism infrastructure, publicity of North Eastern states.
Experts believe that the focus on tourism is a big plus for the hospitality and travel industries as these are very well interlinked with each other.
The thrust on infrastructure in aviation, railways, waterways and roads will also help in increasing travel and tourism within and outside India. In addition, 50 tourist destinations being developed are expected to attract more foreign tourists to the country.
OYO Founder and Group CEO Ritesh Agarwal said, “The 33 per cent increase in capital investment in infrastructure and Urban Infrastructure Development Fund (UIDF) will have a multiplier effect. Announcing a capital outlay of Rs 2.40 lakh crore for the railway sector, The addition of 50 airports, heliports, water aerodromes and advanced landing grounds will accelerate the overall infrastructure, thereby improving connectivity across the country and boosting domestic travel and tourism.”
Nishant Pitti, CEO & Co-Founder, EaseMyTrip, said, “The launch of ‘Unity Mall’ is another step towards promoting theme-based tourist circuits and locally manufactured goods by the states, resulting in revival of the tourism industry. Many facilities will be provided simultaneously. Employment generation and entrepreneurship opportunities. In addition, the launch of new income tax slab People will have new and better opportunities to travel and discover the rich diversity of India.”
Notably, the government has identified tourism as one of the key sectors with great potential to generate employment for the youth, and reiterated the government’s commitment to promote tourism on a ‘mission mode’.
“We welcome the move to develop 50 cities India To develop an app as a complete package for domestic and international tourism, and to regularly update all key metrics related to travel and tourism for the said cities. We also appreciate the move to encourage States to set up ‘Unity Mall’ in their most popular tourist destination to promote GI, ‘Made in India’ products and handicrafts.”
MakeMyTrip co-founder and group CEO Rajesh Mago also highlighted that the budget has several welcome initiatives such as revival of 50 airports, creation of 50 new destinations and higher budgetary outlay on railways, roads and highways, which will help Will do Long term growth for the domestic travel and tourism industry.
However, Mago also underlined that “the budget proposal that will negatively impact the industry is the move to increase the TCS mandate on foreign tour packages from 5% to 20%. This will not only increase the upfront cash outflow for customers, Rather, foreign-based online travel booking platforms would also get an unfair advantage over India-based travel agents and tour operators.
Sabina Chopra, Co-Founder and COO, Corporate Travel and Head Industry Relations, Yatra Online, underlined that the travel and tourism sector has suffered a lot during the pandemic, hence the industry is looking forward to more relief from the government for faster revival. having had.
“An increase in the price of ATF by 4% will increase the burden on airlines, which in turn will affect the end consumer. However, on the bright side, the announcement of the highest ever railway outlay of Rs 2.4 lakh crore will help in promoting affordable regional connectivity and logistics of freight. The development of 50 new airports, helipads and upgraded landing grounds to improve regional air connectivity will give a tremendous boost to niche sectors such as religious, spiritual and wellness tourism by easing the movement of passengers.”
Alok Bajpai, Co-Founder and Group CEO, ixigo, highlighted that while the travel industry has made a spectacular comeback in 2022, the next target should be to focus on encouraging foreign tourist inflows and rapid revival of international travel.
“Setting up ‘Unity Malls’ in state capitals and popular tourist destinations will mark tourist spots, monuments and places for visitors which will further boost the sector. Development of 50 new airports will improve regional air connectivity and tier Travelers from Tier 2 and Tier 3 cities will be benefited, where air travel and first-time travelers have seen a significant increase in demand following the relaxation of travel restrictions.”
Bajpai also highlighted that while these initiatives will benefit domestic travel in the long run, overseas holidays may become costlier for Indian travelers as TCS for foreign tour packages to increase from 5% to 20% Will go
Bajpai said the higher cost for Indian travelers due to the tax hike could impact the demand for international travel which was slowly picking up.
Experts in the hospitality sector had expected some relief in the budget.
Chander Balaji, Chairman and Managing Director, Royal Orchid & Regenta Hotels, said, “Tourism has been given some kind of prominence which is long overdue. The focus on ‘Bharat Dekho’ is commendable as it is an initiative that will inspire Indians to discover India and see their country like never before.”
“However, there are several sectors, especially the hospitality industry that have missed out. There is no loan for a long time and also no industry status, which has been our request for years,” said Balaji.
“Though tourism has been recognized as one of the drivers of the economy, the suggested 50 additional airports will definitely help the industry but will take 3-5 years to build. Also about the 50 tourist destinations selected That is what can be said. It will take a very long time to complete, maybe even five to 10 years,” Balji highlighted.
Rajesh Ghanshani, Director Business Development, Indian Subcontinent, STAAH said that with the country’s sheer size and diverse offerings, the travel sector is poised for growth.
Integration of technology, such as a centralized travel app, is expected to bring greater efficiency and convenience for both passengers and businesses. This can not only increase domestic travel but also attract foreign tourists to experience India’s rich cultural offerings.
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