As the nation eagerly awaits the presentation of Budget 2024, the travel and hospitality industry in India is abuzz with expectations, hoping for strategic measures to uplift the sector battered by the challenges of the ongoing pandemic. Industry leaders and experts have articulated a collective wishlist, emphasizing the need for a comprehensive approach to promote domestic tourism, attract investments, and enhance infrastructure.
Infrastructure Focus:
Leaders in the industry have stressed the importance of robust infrastructure development across India. They highlight the significance of establishing new airports, expanding rail, road, and waterways, and focusing on high-growth areas such as religious circuits and lesser-explored destinations. Urgent calls have been made to expedite initiatives enhancing connectivity to remote yet promising tourism destinations within the country.
Tax Reforms and Incentives:
Experts advocate for tax reforms to level the playing field for the industry. Suggestions include consolidating tax rates on outbound tours, removing deterrents to technology through revised levies on automated bookings, and incentivizing sustainable travel practices. The industry anticipates a reduction in income tax levels, exemptions for Leave Travel Allowance (LTA), and standardization of taxes for foreign travel packages within the Indian context.
Technology Adoption and Skill Development:
Acknowledging the role of technology in enhancing traveler experience, leaders call for continued government investment in technological advancements. Initiatives like improving digital travel experiences have been commended, and there’s consensus on the importance of skill development tailored to India’s unique needs in the hospitality and tourism sector.
Support for Pandemic-Hit Sectors:
Sectors severely impacted by the pandemic, like restaurants, outline key areas of focus. They highlight the need for the restoration of GST Input Tax Credit, reinstatement of specific schemes, and the establishment of dedicated ministries. The industry calls for measures such as reducing taxes on eco-friendly materials, rationalizing licenses and NOCs, and implementing targeted subsidy schemes for small and medium-sized enterprises (SMEs).
Promotion of Domestic Tourism:
Emphasis has been placed on promoting domestic tourism. Recommendations include initiatives like ‘Swadesh Darshan,’ infrastructure development, simplified visa processes, targeted marketing campaigns for foreign tourists visiting India, and support for SMEs in the hospitality sector through financial assistance and skill development programs tailored to the Indian context.
As Indian Finance Minister Nirmala Sitharaman prepares to present the Interim Budget on February 1, the travel and hospitality industry stands united in anticipation, hoping for a budget that will not only address the immediate challenges but also set the stage for a resilient and thriving future for the sector in the diverse and culturally rich landscape of India.
