New Delhi: Hospitality industry on Wednesday welcomed Finance Minister Nirmala Sitharaman’s announcement to promote tourism on mission mode but were left disappointed with the lack of direct benefits for the sector, including granting of its long pending request for infrastructure status, in the Budget 2023-24.
The Budget has recognised and highlighted the importance of the sector by announcing the selection and development of 50 tourist destinations which will add more value to India as a destination for both domestic and international traveller, they said.
“We are also enthused by the continued focus on developing infrastructure – railways, transport, airports, heliports, water aerodromes – all of which will improve connectivity that is directly linked to the growth of tourism and hospitality,” Hotel Association of India Secretary General, MP Bezbaruah said in a statement.
He, however, said the industry body was “looking forward to some direct benefits like infrastructure status, subsidised rates of utilities, property tax and availability of softer finance options, rationalisation of taxes for hotels”, in the Budget but these have not been addressed.
Similarly, Federation of Hotel & Restaurant Associations of India (FHRAI) Secretary General Jaison Chacko said, “The hospitality industry’s long pending requests for infrastructure status, uniform GST, and placing tourism on the concurrent list of the constitution have not been met but the new announcements are positive signs of the government’s intent about working on them in the near future.” He said it is encouraging to note that the Union Budget has recognised the immense potential of the tourism sector in the country to be tapped and the announcement of the finance minister that promotion of tourism will be taken up on mission mode, with active participation of states, convergence of government programmes and public-private partnerships is “an extremely crucial announcement and the industry believes that this will benefit the sector in the long term”.
MakeMyTrip Co-Founder and Group CEO, Rajesh Magow also noted that initiatives like the revival of 50 airports, the building of 50 new destinations, and high budgetary outlays on railways, roads, and highways will help long-term growth for the domestic travel and tourism industry.
“However, one budget proposal that will negatively impact the industry is the move to increase the TCS mandate from 5 per cent to 20 per cent on overseas tour packages. This will not only increase the upfront cash outflow for customers but will also give an unfair advantage to foreign-based online travel booking platforms over India-based travel agents and tour operators,” he said.
Pride Hotels Ltd Chairman and Managing Director SP Jain said the announcement to develop tourist places jointly by public and private partnerships would give a much-needed boost to the domestic tourism segment.
OYO Founder & Group CEO Ritesh Agarwal said it is heartening to see the extra emphasis given to tourism this year.
“The FM has identified tourism as one of the key sectors, with huge potential to generate employment for the youth, and reiterated government’s commitment to promote tourism on ‘mission mode’,” he said while also welcoming the move to develop 50 cities across India as a complete package for domestic and international tourism.
Belair Travel Director Michael Jain said the announcement made by the finance minister to develop 50 destinations for domestic and international tourists will also help to boost the growth of tourism and hospitality segments.
In her Budget speech, Sitharaman said India offers immense attraction for domestic as well as foreign tourists and there is a large potential to be tapped in tourism.
“The sector holds huge opportunities for jobs and entrepreneurship for youth in particular. Promotion of tourism will be taken up on mission mode, with active participation of states, convergence of government programmes and public-private partnerships,” she said.
PTI

Press Trust of India