Budget allocated for overseas promotion is insufficient to attract tourists: IATO

Rajiv Mehra, President, IATO showed dismay on the budget allocation of a mere ₹ 3 crores made to the Ministry of Tourism, Government of India for overseas promotion and marketing in the Union Budget announced by the Finance Minister on 1 February 2025. “It is shocking that the budget of ₹ 33 cr has been reduced to ₹ 3 cr. Infact the earlier allocated budget of ₹ 33 cr was also miniscule and not enough for overseas promotions and publicity,” he said.

Mehra said, “It is really surprising that on one side the Government is extolling the contribution of the tourism sector for its contribution in economic growth of the country and employment generation and on other hand the government is just allocating a peanut budget of ₹ 3 crores for promoting the country abroad. As a result, the Ministry of Tourism, would not be able to participate and set up India Pavilion in any of the International Travel and Tourism Marts, nor would the Ministry be able to do any overseas publicity and conduct any overseas road shows. This has been happening post covid every year where the Ministry of Tourism has to approach the Ministry of Finance to get approval/sanction for participation in any overseas travel mart/fair. This has led to reduced participation of tourism stakeholders in such marts leading to poor travel promotion and marketing.  In comparison, countries like Singapore, Malaysia, Thailand, Mauritius etc. set up big Tourism Pavilion in international markets which give them ample opportunities to increase inbound tourism to their respective countries. Our government needs to understand that without showcasing our country’s Tourism products in Global Travel Mart and events it is very difficult to attract tourists and reach the level of pre-covid genuine numbers of foreign tourist arrivals even in the next 10 years.”

“We humbly request the Prime Minister and Finance Minister to support the travel and tourism industry and substantial funds be allocated to the Ministry of Tourism, Government of India for overseas marketing & promotion and also to reinstate Marketing Development Assistance scheme for financial assistance to the tour operators, which has been withdrawn by the Ministry of Tourism, Government of India due to non-availability of funds,” he added.