Wednesday began with eagerness and anticipation for the Union Budget 2023! Finance Minister Nirmala Sitharaman on Wednesday announced various changes to the income tax regime, and emphasized on agriculture and tourism projects, the adoption of a new agriculture accelerator fund and the promotion of tourism in ‘Mission Mode’
The Tourism Industry will experience a boost in overall market growth as FM Nirmala Sitharaman, announce substantial aid to the Industry by diverting the focus to relevant aspects of tourism. After the sharp hit of the COVID pandemic, the Industry was in dire need of a miracle to accelerate the ins and outs of travellers. The bread and butter of many people depend on the Tourism Industry creating the Tourism sector to be one of the major areas that contribute to the economy of India. The surging rates for flights and hotels do no good to the Industry, which creates a void for the Indian Tourism market to compete with other countries and is unable to attract tourists
“The country offers an immense attraction for domestic as well as foreign tourists. There is a large potential to be tapped into tourism. The sector holds huge opportunities for jobs and entrepreneurship for youth in particular,” said FM Nirmala Sitharaman.
The government has been working towards creating a better space for the Tourism Industry post-pandemic and has already launched schemes like Swadesh Darshan and Dekho Apna Desh.
Sustainability being the core motive these days, the States and cities will be encouraged to undertake urban planning reforms and actions to transform our cities into ‘sustainable cities of tomorrow’. This will entail the efficient use of land resources, adequate resources for urban infrastructure, transit-oriented development, enhanced availability and affordability of urban land, and opportunities for all.
The Idea of selecting 50 destinations and putting them into mission mode sounds like a plan the Tourism Industry will benefit from greatly. The emphasis on replenishing cities by creating a replacement for old polluting vehicles will create an environmental fix.
The initiative to set up a tourism border for villages will benefit the Indian Tourism market to keep track of the tourist influx. The idea of setting up Unity Malls in every state will act as a prominent centre, this will create a space to boost tourist spots, monuments, and other areas. GI products and handicrafts of each state will see the light of the day as one district product will be the helping tool to boost local artisans.
Further to the announcement of the Union Budget, the following are the reactions from Industry leaders –
by Mr Rajiv Mehra, President, Indian Association of Tour Operators
“Hon’ble Finance Minister mentioned Public Private Partnership in tourism to be taken up in earnest; 50 additional Airports / Heli ports to be developed to encourage Last Mile Connectivity; Rs 79000 Crores for 100 last mile Railway Projects; To give a boost to Dekho Aapna Desh and Swadesh Darshan Scheme; Tourism Infrastructure facility to be developed in villages, especially in the border areas; and One District One Product will be in focus, which is very encouraging”
by Mr Kush Kapoor, CEO, of Roseate Hotels & Resorts:
“Honourable FMs push for the tourism sector is a great booster for the Indian hospitality industry. While post-pandemic there has been a significant increase in domestic tourism’s contribution to luxury hotels, the ‘Dekho Apna Desh’ campaign will further add to the momentum. The government’s focus on tourism promotion is evident in their opening up opportunities for joint participation of the states and private players in Government programs via the PPP mode. This will be a major driver for the growth of tourism across India. Further, the development of 50 new airports and 50 destinations through challenge mode to develop a consolidated package for both domestic and international tourism also augurs well for India’s hospitality industry that has long grappled with infrastructure bottlenecks.”
by Mr Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts
“The Union Budget 2023-2024 presented by the Finance Minister (Nirmala Sitharaman) is a growth-oriented one aimed to help India weather the current global economic challenges. With the FM announcing plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds, it will boost regional connectivity. Moreover, the announcement to develop 50 destinations for domestic and international tourists will also help to draw attention to the country’s tourism and hospitality sectors. The Finance Minister said that these tourist destinations will be selected through challenge mode. The impetus on Dekho Apna Desh will provide a further boost to the growth of domestic tourism in the country. The FM also highlighted that states will be encouraged to set up a “Unity Mall” in the capital city or most popular tourist destination for the promotion of the ‘One District, One product’ theme. Such initiatives will also help unleash the potential taped in the tourism sector.”
by Mr Jurgen Bailom, President and CEO of Waterways Leisure Pvt Ltd
“The budget mentions that there is a larger potential to be tapped into tourism and I personally believe that this is true to add to it the tourism industry is growing and experimenting more than ever. Not only does tourism help the economy but also, this sector holds opportunities for jobs and entrepreneurship. As mentioned in the budget, the states and government will actively participate in promotions for tourism in India, I think it’s a great initiative to elevate the sector and travel culture. It is a huge step that for the first time in the Union Budget, tourism is the key focus policy area. The tourism and Hospitality sectors have a huge potential to cater to the country’s diverse nature and culture, and we Cordelia Cruises are happy to be catering to just that. We do have big plans for the year, starting with Sri Lanka sails from June 2023.”
by Michael Jain, Director, Belair Travel – The Global Travel Company
“The Union Budget 2023-2024 presented by the Finance Minister (Nirmala Sitharaman) is a growth-oriented one and highlighted that the Indian economy is moving ahead in spite of the global economic challenges. The change in the individual tax regime with those with incomes up to Rs. 7 Lakh will now pay no tax is a good move to boost middle-class spending. I hope the income tax exemption announced will help spur consumption in activities like travel. With the government announcing that states will be encouraged to set up a “Unity Mall” in the capital city or most popular tourist destination for the promotion of the ‘One District, One product’ theme, such initiatives will help to unleash the potential vested in the tourism sector. The announcement made by FM to develop 50 destinations for domestic and international tourists will also help to boost the growth of tourism and hospitality segments. Regional connectivity is key for helping India to showcase its diverse tourism experiences. With the government’s plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds, regional connectivity will improve strongly.”
by Mr Sandeep Arora, Director of Brightsun Travel India
“Indian economy is expected to increase by 7% in the year 2023 and tourism is one of the major areas that contribute to it. Development of tourist infrastructure is the need of the hour so the announcement that 50 tourist destinations will be developed for domestic and international tourism is a positive step. Plus, the border village tourism initiative will bring tourists to these far corners helping the local communities earn livelihood and prosper. This year’s budget also saw the highest-ever capital outlay of 2.5 crores for the railways which may provide the push needed for the growth of domestic tourism in the country. Air travel is also expected to rise. Specific focus is needed for the tourism industry to rebound back to pre-pandemic levels and we hope that these initiatives will provide much awaited-relief to the Indian tourism sector.”
The overall budget announcement has created a conundrum for people to allocate their funds in different directions. There is a lookout for the next leg of the budget to ensure the smooth sailing of the economic growth of the country.
