IATO is distressed to learn that mere Rs. 3 Crore has been assigned for overseas promotion in the Budget. Mr. Rajiv Mehra, President – Indian Association of Tour Operators (IATO) is deeply dismayed on the Budget allocation of a mere Rs. 3 crores made to the Ministry of Tourism, Government of India for overseas promotion and marketing in the Union Budget announced by the Hon’ble Finance Minister on 1st February 2025. It is shocking that the budget of Rs 33 cr has been reduced to Rs 3 cr. Infact the earlier allocated budget of Rs. 33 cr was also miniscule and not enough for overseas promotions and publicity.
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 Rs. 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 to attract tourists and reach the level of pre-covid genuine numbers of foreign tourist arrivals even in the next 10 years.
Mr. Mehra adds, “We humbly request the Hon’ble Prime Minister and Hon’ble Finance Minister to support the travel and tourism industry and substantial funds be allocated to the Ministry of Tourism, Government of India for overseas marketing & promotion and also to reinstate Marketing Development Assistance scheme for financial assistance to the tour operators, which has been withdrawn by the Ministry of Tourism, Government of India due to non-availability of funds”.
