Sharing his reaction to the Union Budget 2024, Pradeep Shetty, President of FHRAI, says, “The hospitality sector has been pinning high hopes on the Union Budget for 2024- 25 presented today, on the backdrop of the Government of India’s stated vision of Viksit Bharat by 2047 and the critical role tourism industry holds in achieving it. However, there is nothing spectacular in the budget to bring structural changes to address the fundamental challenges it faces in a competitive world order and to accelerate the growth of the sector to be a $ 3 trillion economy by 2047. Some key demands of tourism & hospitality to revitalise the sector such as GST rationalisation, granting of infrastructure status and bringing ease of doing business and policy reforms have not been considered in the budget once again, given the well accepted multiplier effect of tourism on employment and economy. The hospitality sector is disappointed but not dejected as the overall focus on infrastructure development, employment generation and skill development and development of religious tourism centres are the silver linings which will help the sector to tide over some of the critical challenges that it faces today. The focus of Budget 2024 on youth employment, skill development and job creation are welcome initiatives. The industry has been facing a shortage of skilled workforce,especially in the hospitality sector. It is also laudable that the Honourable Finance Minister’s Budget speech highlights the Governments’ commitment to make India a premier global travel destination through targeted investment and strategic initiatives. Development of iconic spiritual sites along with promotion of cruise and beach tourism can be helpful in attracting both domestic and international tourists.”

Commenting on the just-concluded Union Budget 2024, Ajay Prakash, National President, TAFI, says, “As usual, the tourism industry has been left high and dry this year too. Every year, we put forward what we think are absolutely necessary steps if tourism is to realise its full potential. And like every year, it has been ignored. While tourism was mentioned as one of the three important aspects, the only thing that the FM said that the government would do was to develop the temples and the corridors at Rajgir and Bodh Gaya and Gaya, revive the Nalanda university, and there was some concession about for domestic cruises. But that is the sum total of what the Budget has to offer us, so we are very disappointed. While there has been an allocation for new airports and roads, mere infrastructure does not promote tourism. GST and TCS are burning issues and she did not touch it at all. There has to be a better system to address this.”  

The Ministry of Tourism has been encouraging cruise tourism for a while now, and we have seen some developments on that front. But in this Interim Budget, the FM has gone a step further. She said, “There is tremendous potential for cruise tourism in India. To give a fillip to this employment generating industry, I am proposing a simpler tax regime for foreign shipping companies operating domestic cruises in the country.” For domestic tourism, the FM announced projects for better port connectivity and more tourism infrastructure, that will be taken up on islands in India, including of course Lakshadweep! All in all, her Budget highlighted promoting investments into India, including its infrastructure projects. The FM has also proposed to put in place a presumptive taxation regime for cruise ship operations of non-residents. Further, it is proposed to provide exemption for any income of a foreign company from lease rentals of cruise ships, received from a related company which operates such ship or ships in India.

Rules for FDI and Overseas Investments to be simplified to increase FDI inflows and promote use of Indian Rupee as currency for overseas investments, said the FM in her Interim Budget speech. She also said that 1.5 lakh core provision for long-term interest-free loans will be made to support infrastructure investment by state governments. The states will also be incentivised to implement Business Reforms Action Plans and digitalisation to develop tourism. All in all, the Union Budget 2024 was not a total let-down as far as tourism is concerned. Perhaps it has sown the seeds for a better tourism experience in India. But that may be too far into the future. Moreover, there has been no change in taxation, which has disappointed the travel trade no end. Their main gripe was the extremely high GST rates and the procedures, as well as bearing the onus of determining the quantum of TCS.

Sitharaman has raised our hopes when it comes to tourism in India, which bodes well not just for domestic but also inbound tourism, which has been suffering since Covid. Delivering to the states, she highlighted the development of ‘iconic’ tourism centres by the states who will be allowed long-term, interest-free loans for such long-term development. For domestic tourism, the FM announced projects for better port connectivity and more tourism infrastructure, that will be taken up on islands in India, including of course Lakshadweep! All in all, her Budget highlighted promoting investments into India, including its infrastructure projects. In positioning India as a global tourist destination, we’ll also create jobs, stimulate investments and unlock economic opportunities for other sectors. In addition to the measures outlined in the interim budget, I propose the following measures. Vishnupath temple at Gaya and Mahabodhi temple at Bodh Gaya in Bihar are of immense spiritual significance. Comprehensive development of Vishnupath temple corridor and Mahabodhi temple corridor will be supported, modeled on the successful Kashi Vishwana temple corridor to transform them into world-class pilgrim and tourist destinations. Rajgir, Rajgir holds immense religious significance for Hindus, Buddhists and Jains. The 20th Tirthankara Muni Suvaratha temple in the Jain complex, Jain temple complex is ancient. The Sapta Rishi or the seven hot springs form a warm water Brahmkund that is sacred. A comprehensive development initiative for Rajgir will be undertaken. Our government will support the development of Nalanda as a tourist center besides reviving Nalanda University to its glorious stature. Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches make it an ultimate tourism destination. Our government will provide assistance for their development to Odisha …

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.

La Mamounia, the iconic exclusive resort in the heart of Marrakech, Morocco, is now exclusively represented by Indiva Marketing. This partnership marks a milestone as it expands its portfolio to include one of the world’s most prestigious and historically rich hospitality brands. La Mamounia, renowned for its opulent architecture, lush gardens, and unparalleled service, has been a symbol of Moroccan hospitality since its opening in 1923. The resort has consistently been a favourite among discerning travellers, including celebrities, royalty, and dignitaries from around the globe, for a memorable vacation and lavish celebrations. With this new collaboration, Indiva Marketing aims to introduce the unique charm and luxury of La Mamounia to Indian traveler. La Mamounia’s Pierre Jochem, General Manager, expressed his enthusiasm stating, “India is a rapidly growing market with a strong appetite for luxury travel, exclusive hotels, fine food and wine. We are confident that Indiva Marketing’s deep understanding and innovative approach will help us reach new heights in this vibrant region. We look forward to welcoming Indian guests to La Mamounia, to experience the magic of Marrakech like never before.” “We are delighted to represent La Mamounia in India to bring this exceptional resort to the forefront of Indian travellers who seek an unforgettable and enriching travel experience.” said Beate Mauder Kakkar, Managing Director at Indiva Marketing. “La Mamounia is a destination in itself, offering an immersive experience that combines Moroccan tradition with refined luxury. With extensive experience and expertise in the travel and tourism sector, Indiva Marketing is well-positioned to promote La Mamounia’s offerings to the Indian market. The partnership will focus on creating bespoke marketing strategies, enhancing brand awareness, and driving engagement through various channels, including digital marketing, …

Global Destinations, a premier travel representation company, is delighted to announce its appointment as the official sales and marketing arm for WOTF Group in India. This strategic collaboration is aimed at promoting Greece as a top travel destination for Indian tourists.   With its rich history, stunning landscapes, and vibrant culture, Greece has long been a favorite among global travelers. Through this partnership, Global Destinations will leverage its extensive industry expertise and deep market knowledge to showcase the diverse and unique experiences that Greece has to offer to Indian tourists. “We are thrilled to be the chosen partner for WOTF Group in India,” said Pranav Kapadia, Founder and Director of Global Destinations. “Greece is a destination that perfectly aligns with the evolving travel aspirations of Indian tourists, who are increasingly seeking rich architectural and archaeological treasures, pristine natural beauty, and unforgettable memories. Our mission will be to elevate Greece’s presence in the Indian market and inspire more travelers to explore this incredible country.” WOTF Group, a leader in global travel and tourism management, is renowned for its innovative and comprehensive approach to destination marketing. This collaboration will focus on a range of strategic initiatives, including targeted marketing campaigns, trade partnerships, sales missions, and networking with travel agents across India, all designed to highlight Greece’s unique attractions and drive visitor growth from India. About the partnership, Nikolas Kavalieros, Managing Partner at WOTF Group, stated “India is a key market for us, and we believe that Global Destinations, with their proven track record and industry relationships, is the ideal partner to help us achieve our objectives. We are confident that this partnership will significantly boost Greece’s visibility and appeal among Indian travelers.” …

Jurgen Bailom, President and CEO of Cordelia Cruises, shares his comments on what the FM can do to help develop the cruise tourism industry in India. He says, “We at Cordelia Cruises are optimistic about the positive changes it could bring to our industry. The government’s support has been instrumental in fostering growth and development within the cruise sector. We believe that a reduction in the GST rate for cruise ticket sales and onboard services, or the introduction of a tax holiday similar to what was done for the IT industry, would not only make cruising more accessible to a broader audience but also boost the overall travel and tourism sector.” “Continued investment in port infrastructure development is crucial to support the growth of the cruise industry and improve connectivity. We believe these measures will significantly contribute to positioning India as a premier cruising destination, benefiting both the economy and tourism. We are confident that the government’s continued support will drive the industry forward.” “Furthermore, we request that cruise services should not qualify as providers of Overseas Tour Program Packages (OTPP), which mandates the collection of TCS from customers purchasing cruise packages. Unlike airlines, which are exempt from TCS for international flights, adding TCS over and above the 18% GST increases the overall cost of a cruise ticket and is not favourable for passengers. This change will significantly increase bookings and contribute to the growth of the cruise industry in India.”