Tag Archives: Union Budget 2025

Dr. Subhash Goyal, Chairman Aviation & Tourism Committee of Indian Chamber of Commerce (ICC) is also a veteran in the tourism industry thanked the Hon’ble Finance Minister for acknowledging the tourism sector’s significant contribution to the nation’s economic growth and job creation. He also thanked the Minister for the initiative to develop 50 tourist destinations in collaboration with state governments, with the focus on enhancing India’s global image as a premier travel destination. The effort will be on improving the infrastructure development and accessibility to the monuments and sites to attract more tourist visitors. At the same time, Dr. Goyal also expressed his disappointment on the Budget passed by the Hon’ble Finance Minister as the allocation of only Rs. 3 crores given to the Ministry of Tourism is shocking. Earlier the allocation was Rs.400 Crore when we had a very successful Incredible India campaign, which was drastically reduced to Rs.33 crores and now to Rs.3 crore is absolutely meaningless. By this publicity to the global consumer for tourism has come to an end and the little efforts will be made on a B2B level through trade fairs will also be further curtailed apart from the fact that the consumer’s demand for India has gone down. The image of India will take a hit when we will not be able to participate in any international trade fairs; and small countries like Srilanka, Maldives, Malaysia, Thailand and Vietnam will have huge pavilions to attract international tourists. Dr. Goyal said, the greatest need of this country is employment generation and poverty eradication. With the coming of AI (Artificial Intelligence) lot of jobs will be drastically cut and reduced, not only in the manufacturing …

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 …

‘’The Union Budget 2025 marks a significant step in supporting the sustained growth of India’s aviation sector. We commend the government’s commitment to infrastructure which will make air travel more accessible, thereby boosting tourism and the economy on the whole. Aligned with the vision of Viksit Bharat 2047, this focus on aviation strengthens India’s position as a global hub, ensuring greater mobility for all and contributing to a more connected, inclusive nation. As India’s fastest-growing airline, we applaud the government’s continued efforts to fuel the sector’s growth and make air travel accessible to a greater number of Indians.’’

Dr Sanjay Sethi, Managing Director & Chief Executive Officer, Chalet Hotels shared his perspective on the Union Budget 2025, “The Union Budget 2025 has outlined a set of impactful initiatives that will play a pivotal role in boosting India’s tourism sector, underscoring the government’s dedication to advancing the travel and hospitality industry. Key measures, including visa-free access for specific foreign groups, simplified e-visa procedures, and the expansion of the UDAN scheme to 120 new destinations, will greatly improve connectivity and ease of travel, benefiting both domestic and international tourists.” He added, “The planned development of 50 key tourist destinations in collaboration with state governments is a game-changer, ensuring better infrastructure, improved connectivity, and world-class amenities. This will not only elevate India’s global tourism competitiveness but also encourage private sector investment in the hospitality ecosystem.” “The government’s focus on medical tourism is another welcome move that positions India as a leading global hub for high-quality healthcare and wellness services, driving demand for hospitality and allied sectors. More Importantly, putting extra disposable income in the hands of the consumer will boost overall consumption, as well as help in accelerating domestic tourism and increase demand for hotels and travel services. With tourism playing a critical role for employment generation and economic contribution, these measures will act as strong enablers for sustained growth,” Sethi further commented.

Reacting to the Budget-2025, Sunil Kumar, President, TAAI, said, “The Indian government’s recent budget reflects a strong commitment to boosting tourism. With initiatives like visa waivers to attract international tourists and upgrading 50 major tourist sites in collaboration with states, the focus is on positioning India as a top global destination. These measures, including investments in infrastructure and connectivity, are designed to enhance India’s tourism appeal. Visa waivers, in particular, will ease travel hurdles, inviting more foreign tourists and driving revenue.” He added that the government also emphasises medical tourism, recognising India’s world-class healthcare facilities. Through partnerships with the private sector, medical tourism is poised for growth. Furthermore, the Udaan scheme’s expansion to 120 destinations will facilitate travel, while Mudra loans for homestays will support affordable accommodation options.

Commenting on the Union Budget 2025, Kanwarjit Singh Sawhney, Hon. Secretary, ITTA said, “The tourism sector is benefiting from initiatives like the UDAN regional connectivity scheme, which could make flying more affordable for the middle class. The reduction or waiver of e-visas for special groups, likely to include Buddhist tourists, is a positive step. India is being recognised as a hub for medical, spiritual, and niche tourism, with a focus on lesser-known destinations beyond the popular Delhi-Agra-Jaipur triangle. While the government’s efforts are commendable, there is a call for improvements in GST and TDS policies, particularly the introduction of a unified GST where input credit can be claimed. Additionally, regulations on luxury vehicles and speed limits for tourism transport need revision.”

Jyoti Mayal, Chairperson, THSC shared her opinion on the Union Budget 2025 saying, “The government sometimes forgets the service providers and travel agents. However, the budget focuses strongly on infrastructure, including the UDAN scheme, which will add 120 new routes to the existing 619, boosting footfalls. There are plans for more helipads in hill areas and new green and brown airports. The addition of 50 tourist sites will promote sustainable tourism. E-visas, particularly for medical and adventure tourism, are another positive development. Skilling initiatives, including the establishment of five National Centers of Excellence, are also encouraging. However, the tourism sector requires more support, especially in marketing and international promotion.”

Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts shared his views on the Union Budget 2025 saying, “The Union Budget’s strategic emphasis on tourism is a welcome move that will significantly boost India’s hospitality industry. The development of 50 key destinations under challenge mode, along with streamlined e-visas and visa-free access for select tourist groups, will drive international footfall and enhance India’s global appeal. The government’s initiative to include new hotels coming up in 50 key destinations in the infrastructure harmonised list (HML) for projects where land will be provided by the state governments is a welcome step. This will help hospitality investors to avail infrastructure lending at easier terms with enhanced limits and offer access to larger amounts of funds as External Commercial Borrowings (ECBs). The government’s plan to introduce a modified UDAN scheme for strengthening connectivity to additional 120 destinations and supporting helipads development in northeastern region will help to connect potential tourist destinations in the region. Particularly, the focus on the Buddhist Circuit presents immense opportunities for hospitality expansion. With greater infrastructure and promotion around these culturally significant sites, we see strong potential to develop quality accommodations and travel experiences in these regions, catering to both domestic and international travellers. Additionally, skill development initiatives through IHMs and financial support for homestays via Mudra loans will strengthen the sector, ensuring high-quality service and deeper community involvement in tourism growth. Cygnett Hotels is keen to align with these initiatives, expanding our footprint in high-growth destinations and playing a pivotal role in India’s tourism success story.”

Reacting to the Union Budget, Pieter Elbers, CEO, IndiGo, said, “The Union Budget 2025 has outlined various great initiatives to further develop a future-ready travel ecosystem, with emphasis on people and infrastructure, and aviation as a key enabler. Investment in developing world-class airports, enhancing regional connectivity, capacity upgrades, procedures, regulatory framework and streamlined visa facilities, will all play critical role in bringing this vision of developing India into a global aviation hub to life. By strengthening both domestic and international connectivity, we are fueling economic progress, bridging communities, and reinforcing aviation’s role as a catalyst for national growth and collectively building India as a leading global economic powerhouse.”

Hailing Union Budget 2025, Hussain Patel, Director, TripJack, said, “The Union Budget 2025 reaffirms the government’s strategic vision to position India as a world-class tourism destination while driving employment-led growth. The initiative to develop 50 top tourist destinations in partnership with states, backed by improved infrastructure and inclusion of hotels in the infrastructure HML framework, will significantly enhance the country’s hospitality ecosystem. The emphasis on skill development through Institutes of Hospitality Management, easier access to MUDRA loans for homestays, and enhanced connectivity to tourist sites will empower local communities and entrepreneurs, creating sustainable employment opportunities.” He added, “Performance-linked incentives for states to strengthen destination management—covering aspects such as tourist amenities, cleanliness, and marketing—will ensure a superior travel experience for visitors. The continued focus on spiritual and religious tourism, particularly destinations associated with Lord Buddha’s life and legacy, aligns with India’s rich cultural and heritage-driven tourism potential. Simplified e-visa procedures and visa-fee waivers for select tourist groups will also make India more accessible to global travellers, reinforcing its position as a vibrant and diverse tourism hub.”