India’s Finance Minister, Nirmala Sitharaman presented the interim budget 2024 on February 1. Even though, the budget didn’t touch upon key expectations of the tourism and hospitality industry like long pending industry status, announcements like allocation of interest-free loans for creating iconic tourist destinations and plans to launch projects for port connectivity, tourism infrastructure, and amenities on Indian islands including Lakshadweep have received a positive response.
“The allocation of interest-free loans to state governments for the creation of iconic tourist destinations is a noteworthy step. The expansion of airports and the PM Gati Shakti program are pivotal in enhancing connectivity to previously unexplored regional gems. These initiatives will take domestic discovery to farther reaches of the country, thereby empowering local entrepreneurs and creating employment opportunities,” said Rajesh Magow, Co-founder & Group CEO, MakeMyTrip.
“For the hotel industry, the announcement to create iconic tourist destinations holds immense promise, turning these tourist centers into magnets for MICE activities. Strategically located and well-equipped, these centers can become hubs for national and international gatherings, boosting demand for accommodation, meeting spaces, and related services. The ripple effect is undeniable, with hotel occupancy rates set to surge as these centers become focal points for corporate events,” said Kush Kapoor, CEO, Roseate Hotels & Resorts.
Naveen Nahar, Partner, Travelz Factorry noted that the laudable commitment to boost domestic and inbound tourism through island projects and Metro Rail expansion is noteworthy.
“F M Sitharaman’s foresight promises a golden era of unprecedented development in our nation over the next 5 years. Furthermore, by prioritizing the empowerment of youth and enhancing digital, social, and physical infrastructure, the government is actively encouraging the younger generation to play a pivotal role in the country’s growth and contribute significantly to the G D P,” added Nahar.
Pradeep Shetty, President of The Federation of Hotel & Restaurant Associations of India (F H R A I) also lauded the government’s vision in developing tourism projects in islands like Lakshadweep, expecting it to transform these destinations into major attractions for travellers.
“The enhanced focus of the Government for promotion of MICE, religious tourism, iconic tourism centres and domestic tourism will lay the foundation of tourism development in the ‘Amrit Kal’ and equip the sector to achieve the ambitious target of welcoming 100 million tourists by 2047,” added Shetty.
The Indian government in the past too has taken a number of initiatives like ‘Dekho Apna Desh’ to promote the domestic tourism sector. The industry expressed happiness that domestic tourism market once again found mention in the FM’s speech.
“The focus on domestic travel is not just a mere tactic; it serves to instill a sense of pride and knowledge in Indians about their own heritage while also jumpstarting socio-economic progress, especially in smaller cities. Through the promotion of inclusive development, these endeavors strive to empower local communities,” said Manish Rathi, co-founder and CEO, IntrCity SmartBus.
Manoj Sihag & Rahul Uppal, Directors, Echor Hotels & Resorts said, “We celebrate the government’s commendable increase in capex for road infrastructure, there’s a missed chance in the new budget to merge GST categories. Despite this, the enhanced connectivity will positively impact local tourism, cutting travel time from major cities like Delhi to scenic destinations like Himachal and Kashmir through improved tunnels and roads.”
The industry is expecting that the government will look into their demands when the full budget will be presented later this year.
“The projects to enhance connectivity in the country through the development of airports, railways metro lines, ports in our unexplored island including Lakshadweep, and tourism infrastructure, will enhance demand and generate employment. This is not just a boost for tourism, it’s an investment in India’s potential. We are optimistic about additional futuristic support from the Government in granting infrastructure status to hospitality and tourism, which will help us achieve a long-awaited status. We foresee that this will have a multiplier impact and drive significant investment from the private sector,” said K.B. Kachru, Chairman Emeritus & Principal Advisor, Radisson Hotel Group, South Asia.
However, the Travel Agents Association of India (TAAI) expressed disappointment, noting the lack of immediate relief for travel agents and tour operators, especially regarding issues like the TCS levy on overseas tour packages. They also highlighted the absence of measures to protect against airline bankruptcies.
“TAAI being the nodal and premier body feels that although being an interim budget pending challenges and concerns from over two years could have been addressed by the FM, especially on the TCS levy on Overseas Tour Programme Package, which is impacting business of travel agents operating in India making them non-competitive and impacting the liquidity of the consumers,” read a press release issued on the behalf of the association.
Rajiv Mehra, President, Aayato said, “Though we welcome the increase in budgetary allocation to 2,000 cr from last financial year ‘s 1600 crore and mention of branding in the budget speech of the FM, we must remember that unless we dont do roadshows overseas, Familiarization trips and publicity campaigns abroad till then we would not be able to draw tourist to our country.
Every country in our neighbourhood is courting Indian tourists but our effort towards drawing tourists from abroad is zilch. We have to understand that we need to compete but the urgency and the importance this matter should receive is still missing’
Rajit Mehta, MD & CEO, Antara Senior Care, a part of Max hospital group praised the government initiatives in health care. He said, “At Antara Senior Care, we are excited to witness a new era of progress in the Indian healthcare sector with the boost that the Union Budget 2024 provides. We applaud the Hon. Finance Minister’s announcement to set up more medical colleges, utilising India’s existing hospital infrastructure under various departments. This will also pave the path for delivering more effective and holistic geriatric care enabling the senior population to live with dignity and respect. This is a strong step in the right direction and by fostering greater collaboration between policymakers, industry stakeholders we can all better address the evolving health and lifecare needs of our seniors.”
“Antara Senior Care applauds the government’s healthcare initiatives in the Union Budget 2024, particularly the extension of the Ayushman Bharat scheme for aasha and Aanganwadi workers, and the plan to increase the number of medical colleges in the country in a resource-effective manner. This is a great step to ensure universal access to and improve the quality of healthcare for all. We are excited to continue contributing to the healthcare infrastructure by expanding our senior care services across the country and working in collaboration with policymakers,” Ishaan Khanna, CEO, Antara Assisted Care Services added
