Presenting the Union Budget 2025, Finance Minister Nirmala Sitharaman proposed a simpler tax regime for foreign shipping companies operating domestic cruises in India, aiming to boost cruise tourism. She highlighted plans for ownership, leasing, and flagging reforms to enhance the domestic shipping industry’s share and create more jobs.

Commenting on the Union Budget, KB Kachru, President, HAI, stated, “There is a continued focus on infrastructural development, fiscal prudence and consolidation whereas tourism continues to be accepted as an engine of growth for the economy. The emphasis has been given to spiritual tourism, however, there is no mention of any policy changes to expedite the growth.” He further said, “Tourism and hospitality play a crucial role in the growth of the Indian economy. The continued focus on government spending on infrastructure development augurs well for the sector. Improved infrastructure would translate into better connectivity which will be beneficial to the promotion of tourism. The development of the eastern region especially Odisha, temple corridors in Gaya and  Bodhgaya, Rajgir and the identification of Nalanda as a key tourism site continue to demonstrate the government’s intent to utilize the potential of tourism. Regrettably, however, there has been no policy announcement to facilitate the development of hotels and promotion of inbound tourism. The announcement of GST simplification, comprehensive review of the income tax Act provides some hope for the sector that has been seeking rationalisation of taxes. The benefits to individuals on taxation will augment the spending power. The focus on skilling and incentivising employers for creating jobs are other positives that will benefit all sectors.” Although not directly linked to this budget, the industry would continue pursuing its ask for grant of infrastructure status for the hospitality sector and industry-related benefits by all state governments, Kachru added.

Giving his reaction to the Union Budget announced today, PP Khanna, President, ADTOI, said, “The budget was expected to be a comprehensive roadmap for the next five years but appears to lack substantial long-term strategies. Specific sectors, such as tourism, received attention, but the initiatives may seem insufficient in scope.” Commenting further, he said, “The government has implemented GST, which has reduced the compliance burden on trade and industry by unifying the highly fragmented indirect tax regime in India. The tax base of GST has more than doubled, and the average monthly gross GST collection has almost doubled to ₹1.66 lakh crore. On the other hand, no specific information on TCS in the tourism industry is available. The tourism industry has been impacted by the introduction of GST and TCS, with some tour operators and travel agencies facing challenges in complying with the new tax regime. However, the government has taken steps to simplify the tax process and reduce the compliance burden on businesses. The general sentiment is that the budget does not fully meet the high expectations set by previous promises.”

Reacting to the Union Budget which has been announced today, Gajesh Girdhar, National Coordinator, NIMA, said, “We welcome some of the initiatives proposed in the Union Budget such as the government’s continuous focus on the development of domestic and inbound tourism, encouragement to the Indian cruise tourism industry by offering a simpler tax regime for foreign shipping companies looking to operate and lease the vessels in Indian waters. This is a significant move not only for domestic tourists but also to attract foreign tourists, who always look for new cruise destinations.” Giving a further boost to religious tourism, the Finance Minister has emphasised developing new destinations in Gaya and Bodh Gaya. However, there is no mention of any specific concession on GST and TCS for Indian Outbound Travellers to the dismay of the Tour Operator Fraternity, Girdhar further said.

Expressing her views on the Union Budget 2024-2025 presented by Union Finance Minister, Nirmala Sitharaman today, Jyoti Mayal, President, Travel Agents Association of India and Vice Chairperson, FAITH, said, “The budget for tourism is a huge letdown. Out of 28 states and 8 Union Territories, the FM focuses on the infrastructure development of a couple of states, which is quite disappointing. However, the promotion of a religious corridor in these states is appreciated. The only word of inclusion is the reduction of TDS for all e-commerce companies and a simpler tax regime for foreign shipping companies’ operations in the domestic market for cruise tourism.” She added that the focus on skilling is appreciable but where will the jobs be created in the tourism sector unless the employer can absorb more and pay the skilled youth?

High taxes in the transport sector have hit Himachal Pradesh tourism hard. The state government levied a tax ranging from ₹500 to ₹1,400 per day on tourist vehicles entering the state. Protesting the higher taxes, the tour operators of Gujarat boycotted the state and diverted tourists to the adjoining states, which led to a 25% dip in tourism. 

In a significant development, Madhya Pradesh achieved record-breaking tourist footfall in 2023, attracting 112.1 million visitors, three times more than the 34.1 million footfalls recorded in 2022. This remarkable achievement underscores the state’s growing appeal as a multifaceted destination offering a wide array of immersive experiences year-round. 

In a strong message to the world at the 46th Session of the World Heritage Committee, Narendra Modi, Prime Minister, India, said, “It is India’s clarion call to the world to come together to promote each other’s heritage and amplify the spirit of human welfare, encourage tourism and create more job opportunities. There was a time when heritage was ignored in the pursuit of development, but today, India’s vision is development as well as heritage – ‘Vikas bhi, Virasat bhi’.”

Switzerland Tourism invites the Indian outbound travel trade to attend an exclusive webinar on Schilthorn, a mountain which offers stunning views of the surrounding Alpine landscape, including the Eiger, Mönch and Jungfrau. Attend all webinars for a chance to win a trip to Switzerland in 2025! For more information, write to jaspreet.kaur@ddppl.com or 9650196532.

Espire Hospitality Group, one of the fastest-growing hospitality groups in India, is excited to announce the signing of an iconic hotel in the historic city of Ayodhya. Set to open in Q4, 2024, this wide-spread property will feature 150 keys, with a mixed inventory of 50 keys offering the distinctive experience of the luxury boutique resort brand ZANA Luxury Resorts and the remaining 100 keys offering a premium experience of the mid-segment Country Inn Hotels and Resorts brand. This strategically located hotel will offer characterful stay experience in an expansive property that showcases the mood of the sacred destination. The hotel also provides easy access to notable landmarks such as Ram Janmabhoomi, Hanuman Garhi Temple, and Kanak Bhawan. Guests will have a choice of a delectable buffet or à la carte dining at the multi-cuisine restaurant, ensuring a delightful culinary experience for all. For a holistic experience, the hotel will feature a range of facilities designed for both relaxation and entertainment. These include a kid’s play area ‘Toddle Wobble’, a Gaming Arena, and a versatile event space spanning 3,000 sq. ft., perfect for hosting various events and gatherings. With a mix of two different hotel brands, guests can expect distinctive luxury, inspiring experiences, and personalized service at ZANA. On the other hand, the guests looking for a more economical choice can expect a delightful Country Inn experience, renowned for offering comfort, family-friendly stays and heartfelt hospitality. Akhil Arora, Chief Executive Officer and Managing Director, Espire Hospitality Group said, “We are thrilled to bring our two brands, ‘ZANA Luxury Resorts’ and ‘Country Inn Hotels and Resorts’, to the city of epic Ramyana, Ayodhya.” This signing marks a significant milestone for us …