Category Archives: MOT

Pradeep Shetty, President, HRAWI, said that he was happy with Maharashtra’s Tourism Policy 2024, adding, “The annual financial allocation of INR 1,666 Cr for incentives and operational support underscores the Government’s commitment to enhancing tourism and hospitality infrastructure. This progressive framework, aimed at positioning Maharashtra as a global tourist destination, is a game-changer for our industry.”

With the aim of Viksit Bharat by 2047, the Interim Budget 2024 yet again showcased a lofty imagery of the ‘new and improved’ India. However, it does fleetingly mention tourism and its development – directly and indirectly. To build a foundation for future development, the FM underlined its Startup Credit Guarantee Schemes that will encourage new businesses in various sectors including, hopefully, tourism. She mentioned that the country ‘is capable of creating more opportunities’ which cannot be further from the truth. Sitharaman added that the focus will be on ffostering and sustaining growth to create great opportunities for all and to fulfil aspirations. She said that the MSME will be an important element of this policy. Coming to aviation, she said that it has been ‘galvanized in the past 10 years’ with number of airports doubled, expansion of the UDAN scheme, 517 new routes carrying 1.3 crore passengers, and the expansion of existing and new airports that will continue, she committed. Mentioning the success of G20 meets that took place across India, she said the country has made itself an attractive destination for MICE. ‘The corporates want to explore India and religious tourism offers great opportunities.

A lot is riding on Finance Minister Nirmala Sitharaman’s 7th Union Budget presentation, to be aired today. This makes her the first FM to present seven Union Budgets in a row! This Budget is an important one for ‘Amrit Kaal’ and will decide the direction for India’s economy for the next five years. It has the potential to build a strong foundation of our dream of Viksit Bharat, the Prime Minister has said. As the industry braces itself for it, it does so with cautious hope – afraid of being let down yet again due to the absence of any mention of tourism, yet hopeful that perhaps this could be the moment when the sector begins to appear in the FM’s horizon. Watch this space for more updates and industry reactions on the Budget.

Sharing some of the pain points that he seeks clarity and consideration on from the FM , in the upcoming budget, Mahendra Vakharia, Executive Committee Member / Immediate Past President – OTOAI & MD, Pathfinders Holidays, shares the below: Make the GST application and adjustment of Credit rule simpler for services rendered to client based in different state, service purchased from different state and invoiced from different state…. Allow adjustment of input credit of GST for International Holidays Reduce the percentage of TCS and Simplify the application of TCS on Foreign tour packages if you are unable to completely abolish TCS on International Packages – especially when booked from a tour operator / travel agent as it is not creating a level playing field for the Travel Agent charging TCS against  a Foreign registered online portal which is allowed to process bookings without charging TCS. This is totally and completely demoralising in defeating the rule of “Make in India” and favouring the foreign operators instead of the local travel agents. Interpretation of TCS rule is also very complicated and should be made very simple – both for the client and the travel agent thereby reducing the liability of the Travel Agent for non compliance due to ambiguity of the law and its implementation In fact from the day one when TCS was introduced the request from Industry was to abolish this TCS rule for International Tour Packages. This rule is not giving the local travel agent who is generating employment, paying income tax, paying GST,  a level playing field in comparision to the online Foreign Travel Portal who is not paying income tax, not generating employment, not paying GST and taking …

Jaiveer Singh, Minister of Tourism & Culture, UP, said, “Uttar Pradesh has an immense potential for tourism, particularly spiritual tourism. Our government’s zero-tolerance policy towards crime has improved the law and order situation of the state that led to the surge of 48 crore footfalls in UP in 2022 and 2023, a number double the population of the state.”

Speaking at the ‘Bodhi Yatra’ conclave, V Vidyavathi, Secretary, MOT, GoI, said, “Govt of India in collaboration with the Govt. of Uttar Pradesh aims to not only create a memorable experience for the Buddhist pilgrims but also ensure the development and better employment opportunities for the local communities. We are also keen to enhance the infrastructure and amenities of Buddhist Museums in the state as they are a living source of history.”

Suman Billa, Additional Secretary, Tourism, has said that TCS is a fair point raised by outbound sector, because people who are doing business in India are getting disincentivised and who travel abroad can make the payment and obviate the entire necessity of paying the tax. “We will be taking it up with the Ministry of Finance,” he added.

OTOAI had a follow-up meeting with Suman Billa, Addl. Secretary, Tourism after heads of travel trade associations met new Union Minister of Tourism. “We have been assured that the ministry will take our issues. We will meet again to discuss how outbound tourism is benefiting inbound tourism,” said Riaz Munshi, President, OTOAI.

Speaking about the suggestions HAI proposed to the MOT, KB Kachru, Chairman Emeritus & Principal Advisor, South Asia, Radisson Hotel Group (RHG), and President, HAI, said, “Government has to tweak some of the policies, particularly to give infrastructure status to the tourism sector, and for talent development.”

Recognising the crucial role played by qualified tourist guides in adventure tourism in India, the Ministry of Tourism has stated that it will prioritise the enhancing of training and certification of these guides, through nationally accepted certification process. It encourages individuals to upgrade their skills through its Incredible India Tourist Guide (Adventure) certification programme conducted by the Indian Institute of Travel & Tourism Management (IITTM).