The 2024 Union Budget of India has laid down significant frameworks aimed at bolstering the travel and tourism sector, emphasising fostering economic growth, creating employment opportunities, and enhancing infrastructure. This comprehensive approach highlights the government’s dedication to elevating India’s status as a global tourism destination while ensuring sustainable development.
Quote by Travel Agents Association of India (TAAI)
The Finance Minister’s Budget speech ignored the Travel Trade in India, disappointing the Travel Agents Association of India (TAAI). Despite its economic growth and employment role, the sector was underfunded and overlooked. While the budget highlighted infrastructure for a few religious sites, it missed opportunities to upgrade existing popular locations and improve connectivity. TAAI welcomes the TDS reduction for e-commerce and simpler tax regimes for foreign shipping but is concerned about the lack of action on reducing Aviation Turbine Fuel (ATF) costs, rationalizing GST rates, and abolishing TCS on outbound travel. The absence of robust domestic tourism campaigns is also a missed opportunity.
Quote by Pradeep Shetty, President of FHRAI & Hotel And Restaurant Association (Western India) – HRAWI
Although the budget falls short of transformative changes in tourism and hospitality, its focus on infrastructure, rural development, and skill enhancement is commendable. The commitment to iconic cultural sites and diverse tourism forms is promising. The hospitality sector finds hope in infrastructure development, job creation, and religious tourism centres, which address critical challenges. Developing spiritual landmarks and promoting Odisha’s tourism, alongside infrastructure investments, will boost domestic travel. The budget’s emphasis on youth employment and skill development is crucial for the hospitality industry’s workforce needs. The government’s vision to make India a global travel destination through strategic investments is laudable.
Quote by Kapil Raizada, Co-founder, IntrCity SmartBus
We are excited about the continued budgetary focus on road and travel infrastructure, which opens huge potential for new regions and improves the inter-city bus transport experience. The Rs 11.11 lakh crore allocation for capital expenditure will significantly enhance road infrastructure and inter-city bus networks. The Rs 26,000 crore investment in Bihar’s road projects, including new expressways, offers significant expansion opportunities, enhancing connectivity and travel options. The ‘Purvodaya’ initiative for eastern states presents a golden opportunity for the bus sector, boosting demand for reliable services. These investments will support India’s economic growth, offering efficient and affordable transportation for travellers and tourists alike.
Quote by Chirag Agrawal, Co-Founder, TravClan
The Finance Minister’s proposals to develop tourism corridors at Vishnupad Temple, Mahabodhi Temple, and Nalanda as tourist hubs mark a significant step in enhancing India’s tourism infrastructure. These initiatives promise to stimulate local economies and attract more visitors, benefiting the travel and tourism sector. At TravClan, we emphasize integrating advanced technology for better visitor management and seamless travel solutions to maximize these developments. While the focus on Odisha’s tourism is commendable, a comprehensive strategy leveraging technology for modern travel agents and domestic tourism efficiency would be even more beneficial. Overall, the budget shows great promise and innovative solutions could drive sustainable growth in the industry.
Quote by Mr Rikant Pittie, Co-Founder, EaseMyTrip
“The government’s attempt to position India as the global tourist destination is evident in the Union Budget 2024-25. Demonstrating efforts to promote religious tourism and domestic tourism infrastructure. With a special focus on Bihar, Nalanda, and Odisha, the government plans to develop iconic religious sites to support its infrastructure and transform them into world-class pilgrim and tourist destinations. We are optimistic that this will enhance the overall experience of the tourists visiting these religious sites and will uplift state tourism.
Additionally, the government has also shown interest in simplifying taxation in the cruise business by proposing presumptive taxation for cruise ship operations in India. This initiative aims to encourage foreign cruise owners to operate in India, thereby providing a significant boost to cruise tourism in the country.
Quote by Aloke Bajpai, Chairman, Managing Director & Group CEO, Ixigo
The government’s policy initiatives to enhance spiritual tourism are a positive step toward growing domestic tourism and making India a global travel destination. Last year, demand for spiritual tourism surged by 40-50% for places like Varanasi, Ayodhya, and Tirupati. The PRASAD Scheme significantly transformed Varanasi, attracting 100 million visitors to Kashi Vishwanath Dham. We anticipate similar boosts for Bihar and Odisha with new spiritual tourism corridors at Vishnupad Temple and Mahabodhi Temple, as well as initiatives for Rajgir, Nalanda, and Odisha. These developments will benefit our large next billion user base, which relies on buses and trains to reach these destinations.
Quote by Sandeep Arora, Director of Brightsun Travel, India
We welcome the 2024 budget, especially the focus on boosting spiritual tourism which not only honours the country’s rich cultural heritage but also opens up new avenues for travel and tourism. The special focus on Bihar and Odisha will see extensive development and promotion of religious and historical sites such as Bodh Gaya, Rajgir and Nalanda. Odisha also has great potential as a destination for religious and beach tourism. The new initiatives to improve infrastructure and connectivity in these offbeat destinations will attract both domestic and international tourists, offering a much-needed boost to the local economy.
Quote by Mr. Jatinder Paul Singh, CEO & Co-Founder, Viacation Tourism
We warmly welcome the 2024 Union Budget’s visionary approach to enhancing India’s tourism sector. FM Sitharaman’s commitment to developing Nalanda, the Nalanda-Rajgir corridor, Vishnupad, and Mahabodhi Temple Corridors promises to elevate these sites to world-class pilgrim destinations. The focus on transforming Rajgir into a comprehensive development hub and supporting Odisha’s tourism infrastructure reflects a broader strategy to showcase India’s rich cultural heritage and diverse attractions. These initiatives aim to position India as a global tourist destination, create significant job opportunities, and stimulate investments across various sectors, driving economic growth and enhancing India’s global tourism profile.
Quote by Rajit Rathor, Chief Financial Officer, Star Air
We applaud the Union Budget 2024 for its focus on bolstering the aviation industry with infrastructure improvements and tax breaks. These measures will enhance operations, reduce turnaround times, and improve the passenger experience. Although the UDAN allocation was reduced, it balances budget constraints while enhancing regional connectivity. Investments in new airports in Bihar and better regulatory frameworks demonstrate a commitment to expanding air travel and regional development. Simpler regulations will improve efficiency, safety, and innovation. We are also pleased with the proposed incentives for MRO activities, addressing past challenges and providing essential support for the sector’s growth.
Quote by Chhavi Chadha, Founder, Bespoke Tailormade Experiences
The latest budget announcement will bring a significant boost to tourism in India. The development of the Vishnupad and Mahabodhi temple corridors will transform these sites into world-class pilgrim and tourist destinations. Comprehensive initiatives in Rajgir and Nalanda will attract history and culture enthusiasts from all over the world. Additionally, the focus on Odisha underscores the government’s commitment to enhancing India’s diverse tourism offerings, making it an even more compelling destination for global travellers.
Quote by Mr. Manoj Bhat, MD & CEO, Mahindra Holidays and Resorts India Ltd
The budget is focused on fiscal prudence, stimulating investments, providing employment, and encouraging growth in the economy. The emphasis on improved connectivity and infrastructure will greatly benefit the domestic tourism sector. The spotlight on developing religious tourism will further boost the local economy by providing investment and employment.
Quote by Mr Kush Kapoor, CEO, Roseate Hotels & Resorts
Though Budget 2024 did not provide direct tax rebates for the hospitality sector, it offers significant indirect benefits. The Finance Minister’s new centrally-sponsored scheme to skill 20 lakh youth over five years and the revised Model Skill Loan scheme, funded through CSR, will attract skilled manpower. The government’s initiatives, including a ₹5000 incentive for interns, will ease operational expenses. This year has already exceeded budget expectations, marking historic industry performance. We remain hopeful for further support, but these measures have been positively received. Enhancing community education and basic skill training will double family incomes and provide a skilled workforce, benefiting the hospitality sector immensely.
Quote by Mr.Animesh Kumar, Head of Commercials at ibis & ibis Styles India
It’s encouraging to see the Finance Minister emphasize tourism’s role in driving the economy and boosting employment and GDP. The focus on developing tourism corridors at Vishnupad Temple and Mahabodhi Temple modelled on the Kashi Vishwanath Temple initiative, will significantly enhance tourism growth. Support for transforming Nalanda into a major tourist destination is also noteworthy. The Rs 11.11 lakh crore allocation for capital expenditure underscores a strong commitment to infrastructure development. However, more lenient tax policies and a substantial budget for improving hotel standards are needed to fully harness the hospitality sector’s potential. We hope for future support, including infrastructure status for the hospitality and tourism sectors.
Quote by Sanjay Sethi, CEO and Managing Director, Chalet Hotels Limited
The Hon’ble Finance Minister presented an inclusive budget with a keen eye on enhancing employment, upliftment of the rural economy and key infrastructure initiatives. At the same time, infrastructure status for tourism and hospitality is a missed opportunity. We were hopeful, as this would have enhanced investments in the industry, leading to greater employment generation and adding to the exchequer’s forex earnings.
Quote by Aditya Sanghi, CEO & Co-Founder, Hotelogix
The 2024 budget introduces impactful initiatives for the tourism sector, poised to enhance India’s global appeal as a tourist destination significantly. The government’s decision to promote Nalanda and Orissa, along with the focus on religious tourism, reflects a strategic and holistic approach that will drive economic growth and showcase India’s rich heritage.
Quote by Mr. Akash Bhatia, CEO, of Eco Hotels and Resorts Limited
The recent budget plan highlights a game-changing vision for India’s tourism industry. Building up the Vishnupad and Mahabodhi Temple corridors, along with the extensive development of Rajgir and re-establishing the Nalanda University, will elevate India’s cultural and historical charm. We’re delighted about the assistance in making Odisha an ultimate top spot for tourists. As one of the key players in the hotel business, we aim to ensure that our services will be exceptional enough to match these improvements and give guests amazing experiences that draw attention to India’s deep roots and lively culture.
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