Tag Archives: Budget

Finance Minister Nirmala Sitharaman stated that aviation sector has been galvanized in the past ten years. Number of airports have doubled to 149. “Roll out of air connectivity to tier-two and tier-three cities under UDAN scheme has been widespread. Five hundred and seventeen new routes are carrying 1.3 crore passengers. Indian carriers have pro-actively placed orders for over 1000 new aircrafts. Expansion of existing airports and development of new airports will continue expeditiously,” she added. This development will result into better connectivity, and more flight routes, which will eventually escalate the aviation industry and will significantly increase the number of tourist arrivals.

Finance Minister Nirmala Sitharaman has announced in the Interim Budget 2024-25 that 40,000 rail bogies will be converted to Vande Bharat standard. The budget also includes the extension of key rail infrastructure projects, such as Metro Rail and Namo Bharat, to additional cities. This will strengthen the connectivity between various tourist destinations resulting in the escalation of the tourism industry.

Nirmala Sitharaman, Union Finance Minister, in her budget speech has said, “To address the emerging fervor for domestic tourism, projects for Port connectivity, tourism infrastructure and amenities will be taken up on our islands including Lakshadweep. This will help in generating employment.”

Announcing the Interim Budget 2024-25, Nrmala Sitharaman, Finance Minister of India, said, ” There will be comprehensive development of tourist centers. The success of organizing G20 meetings in 60 places presented diversity of India to Global audience. Our economic strength has made the country and attractive destination for business and Conference tourism. Our middle class also now aspires to travel and explore tourism including spiritual tourism has tremendous opportunities for local people. States will be encouraged to take up comprehensive development of iconic tourist centers branding and marketing them at global scale. A framework for rating of the centers based on quality of facilities and services will be established long-term interest free loans will be provided to States for financing such development.”

Union Finance Minister Nirmala Sitharaman while presenting the first paperless Budget of the country focused on building infrastructure but unfortunately had no mention on tourism and hospitality industry apart from introducing Vista Dome coaches on tourist routes. The tourism budget too has been reduced by almost 18 per cent, from Rs 2,499.33 crore in 2020 to Rs 2,032.04 crore in 2021. Apart from proposing tax exemption for aircraft leasing companies and plans to monetise AAI airports in tier-II and tier-III cities, the aviation industry too didn’t receive any relief. The FM announced Rs 1.10 lakh crore for outlay of Railways and capital expenditure along with a National Railway Plan for 2030. Additionally, more economic corridors are being planned to boost road infrastructure and tax holiday for startups has been extended by one year. The FM also announced tax exemption for LTC

PP Khanna, President, ADTOI, said they had been looking forward to some GST relief in the Budget. “There has been no relief in GST in the Union Budget 2018-19, we had been looking forward to it. However, the budget offers some SOPs to tourism sector by announcing 10 prominent tourist sites to be developed into iconic ones and enhancing visitor experience in 110 Adarsh monuments under the ASI, with railways to have Wi-Fi and CCTV cameras on all trains and stations. Enhancement of sea plane activities and boosting aviation sector with the present 124 airports, the government plans to take this up five times to accommodate one billion trips per year. Focus on infrastructure, education, healthcare, creation of jobs has been highlighted in the budget, which is a good move.”

The Hotel and Restaurant Association of Western India (HRAWI) certified 13 hotels in Maharashtra under new norms which are more contemporary and global in standards as compared to existing ratings. As per the new norms, hotel properties will be classified, rated or graded under six categories listed as Budget, Classic, Premium, Luxury, Deluxe Luxury and Primo Luxury, and will be uniform for both domestic and foreign tourists. “The objective behind developing the IHQS is to educate our members on modern quality standards as well as reduce the burden of the Ministry of Tourism (MoT). The Government can now focus on improving and promoting tourism, while, we from the industry, are doing our bit to support the initiative,” says Dilip Datwani, President, HRAWI. The Shalimar Hotel, The Fern Residency, Golden Swan Beach Resort, The Emerald, Peninsula Grand Hotel, Sun-N-Sand Hotel, Holiday Inn Mumbai international Airport, Waterstones Hotel, T24 Residency, Hotel Transit, Hotel Meluha, Renaissance Mumbai Hotel and Convention Centre and Hyatt Place are among the first hotels to have been audited as per the new classification standards and have been officially certified as of October 25, 2017.

Guldeep Singh Sahni, President, OTOAI, says, “We were very disappointed with the budget, especially when the government has been talking about tourism being a major pillar of growth. I don’t understand how it cannot be important when budget is concerned, except for the fact that the passports can now be applied in the GPOs.” He took a poignant view on the taxation. “While this is a good move on one side, on the other hand taxing outbound tourism would make us less competitive than people sitting overseas. This will kill the industry, which is making 20 million people travelling outside India, which is not using infrastructure available across the country and still generating revenue,” he adds.

Sarab Jit Singh, Vice-Chairman, FAITH, appreciated the Finance Minister for taking cognizance of FAITH’s recommendations. “The positive in today’s budget is acceptance and announcement by the Finance Minister of creating five special tourism zones, which was FAITH’s recommendation. Secondly, the announcement for Incredible India branding to be relaunched internationally and 35 per cent increase for its allocation is also a positive from our perspective,” he says. He goes on to explain the flip side. “The negative point according to me is the fact that the government is saying that exports are going down. However, tourism is the only industry which can now bring foreign exchange and generate employment, and the only incentives we were getting from were from the Ministry of Commerce, whose total allocation in the budget has now been reduced. Thus, it is a counterproductive feature. If the government wants to increase imports and wants growth, they cannot have lesser allocation for commerce ministry.” He contemplates on the status of tourism industry post this budget and says, “Tourism in the country is not growing for many years. We have lost for decades together; we have lost marketplace completely internationally; as well as we have lost to competing countries. Until the government moves all the aspects together with full force, we will not have results. I agree that the Prime Minister should talk to the industry directly.”

Albert Tjoeng, Assistant Director, Corporate Communications, Asia Pacific at International Air Transport Association (IATA),  takes heart from the Union Budget. “The Finance bill 2017 has added new provisions for the future introduction of submission of PNR data by airlines to the Indian Customs, he says. He adds that IATA hopes that the established global standards for transmission of PNRGOV data would be adhered to. “We would also urge that stakeholder consultations precede the development of any regulations detailing the form and data elements for this information,” he concludes.