Budget 2025 is a ‘disappointment’ for inbound tourism

Prateek Hira, President & CEO, Tornos shared his comments on Union Budget 2025.

“The Indian government has unveiled the Union Budget for the fiscal year 2025-2026. Within the positive announcements by the Finance Ministry that include relaxation in visas for some countries, a focus on 50 tourist destinations, an infrastructure push and a few other initiatives, there is also a deep wound that has been inflicted on the tourism industry, particularly the inbound sector. The budget includes only a slight increase of 4 per cent in the allocation for tourism, which is less than India’s inflation rate, but the worst part, which will have a ramification on the already bleeding inbound sector, is that the international marketing budget for tourism has been reduced to ₹30 million, a reduction of 97 per cent of the already minuscule budget that India had for international tourism marketing. Interestingly, ₹30 million is the budget of many mid-size and large companies for their own marketing and promotions. This move of the Indian government is beyond anyone’s understanding and only points to the fact that India does not want inbound tourists or wants to earn foreign exchange through tourism. The move is in stark contrast to what the government of India speaks at different forums regarding making India a global hub and doubling its foreign tourist arrivals. In this budget, there was no mention of the tourism board, which is an incomplete exercise and could have set many issues right. After the closure of international tourism offices and with no proper marketing strategy in place, the tourism board could have been a saviour. The granting of industry status to tourism and incentivising foreign exchange earnings through tourism for inbound operators was also not addressed in this budget. For the inbound tourism industry this budget has nothing to rejoice or to be happy about.”