Interim Budget Expectations: From the snow-capped peaks of Kashmir to the sun-kissed beaches of Kanyakumari and from the eastern frontiers in Kibithu to the western shores of Guhar Moti, India's diverse landscape has woven itself into the travel diaries of globetrotters. Renowned for its rich culture, wellness and healing, adventure, and heritage, India has emerged as a global tourism hub. In 2022, the contribution of the travel and tourism industry to India’s economy stood at INR 15.7 trillion. As per a recent IBEF report, the tourism sector is projected to contribute US$ 250 billion to the country’s GDP by 2030, generating employment for 137 million individuals.
The Union Budget 2023 aptly acknowledged the potential of the travel and tourism sector. Initiatives like developing 220 airports by 2025, allocating INR 2.4 lakh crore for Indian Railways’ capital expenditure, and enhancing coastal shipping using India's eastern and western sea lines have infused optimism into the tourism landscape. Initiatives such as Swadesh Darshan 2.0, Dekho Apna Desh, and Vibrant Village Programme aim not just to attract NRI tourists but also to inspire domestic travel, pr ..
Tourism is one of India's largest employment sectors, with a remarkable 44% year-on-year increase in talent demand. This unique sector offers income generation to diverse entrepreneurs, from a Kirana store owner in Munnar to a Harvard-educated homestay operator in Shimla. A not-so-well-known yet striking statistic is that one out of every 13 Indians works in the travel and tourism sector, underscoring its critical role in the nation's employment landscape.
Yet, India still ranks 22nd in the global rankings of the most visited countries in the world. This presents an opportunity to elevate our status by overcoming existing challenges.
India's diverse destinations offer everything from serene village escapes to bustling metropolitan experiences, adventurous ski slopes, and deep-sea diving. However, we must identify and address potential growth impediments to scale new heights.
India's hospitality sector, with a total of only 160,000 branded hotel rooms in the organized sector, trails significantly behind its Asian counterparts. This figure is markedly lower compared to China, which boasts nine times more hotel supply. Furthermore, Singapore's branded hotel supply surpasses the combined total of India's three most developed hotel markets—Delhi, Mumbai, and Bengaluru. This disparity underscores a significant opportunity for growth and development in India's hospitality ..
The absence of GST credit for hotel construction in India presents a significant hurdle in the growth of the nation's hospitality sector. Rationalizing GST rates and allowing for GST credit could lead to more affordable hotel stays. Such a move by the Hon'ble Finance Minister would not only make accommodations more accessible to tourists but also encourage further investment in the sector and increase India’s organised hotel supply. Lower hotel rates could trigger a surge in both domestic and in ..
A low single % of Indians have ever travelled by air – we need to make it more accessible. Aviation Turbine Fuel (ATF) accounts for a significant portion of the airline's operational costs. While the central government has encouraged state governments to reduce VAT on ATF, the Honorable Finance Minister can consider a broader policy framework that indirectly affects the cost of ATF, like central excise duties and customs duties. The reduction in ATF could catalyze a domino effect, increasing air ..
Learning from our Asian neighbours, implementing visa-free entry for tourists from India’s top fifteen feeder markets can help substantially increase foreign tourist arrivals. This initiative will not only put India on a competitive footing in the global tourism market but also foster a reciprocal environment. Increased foreign tourist arrivals would benefit the entire tourism value chain, from hotels and restaurants to travel agencies and cultural sites, leading to job creation and community de ..
The resurgence in travel and its impact on our natural habitat has been quite visible this year. Addressing the challenge of overcrowding in popular destinations requires innovative and sustainable solutions, and the Hon'ble Finance Minister could encourage corporations to invest their CSR funds in developing and improving tourist destinations. This approach can lead to developing new attractions and upgrading existing ones while offering tax benefits to the corporations involved. A weighted ded ..
Source Name: Economic Times