Tourism and Hospitality Industry’s Union Budget 2024 Expectations

Col. Manbeer Choudhary, CMD, Jewel Classic Hotels Pvt. Ltd.:

Mr Kush Kappor, CEO , Roseate Hotels & Resorts:

“The forthcoming budget offers a vital chance for the hospitality sector as we believe this is the Golden period for Indian Tourism Industry in case we are able to make the Best use of this opportunity. We request the government to announce industry status for hotels and lower the GST rate from 18% to 12%, bringing it in line with international standards for the tourism industry. This combined advantage will stimulate investments, enhance tourism, and generate job opportunities. The much needed industry status will enable much easier access to cheaper loans for expansion and development. There should be a provision for single window clearance for approvals, a long standing demand from the hotel industry. Government can also lease old properties such as Havelis and hotels for long term, to benefit tourism industry through Public Private Partnership (PPP) model.  Given the industry’s substantial contribution to India’s GDP and foreign exchange earnings, we believe these steps will drive economic growth and position India as a more competitive tourism destination.”

Shikhar Aggarwal, JMD, BLS International:

“As we approach the forthcoming budget, we at BLS International eagerly anticipate policies that will invigorate the travel and tourism sector, a cornerstone of global economic recovery. The past few years have underscored the sector’s resilience and adaptability, and we are optimistic about its potential. Yet, we firmly believe that strategic government support is crucial to fully harnessing this potential.

We hope to see increased investment in infrastructure that enhances connectivity and accessibility, especially in emerging travel destinations. Fostering public-private partnerships can significantly boost tourist inflows, creating a ripple effect of economic benefits. However, we stress the urgent need for fiscal incentives for sustainable tourism initiatives to encourage environmentally responsible practices and align growth with ecological stewardship.

Moreover, the travel and tourism industry thrives on innovation. Thus, incentives for digital transformation, including advancements in travel technology and digital marketing, can position our nation as a leader in smart tourism. We also advocate for measures that support the workforce, such as skill development programs and employment benefits, ensuring the industry remains robust and competitive.

A forward-thinking budget that prioritising these aspects will rejuvenate the travel and tourism sector and contribute substantially to our economic resurgence and global standing.”

 

Ankit Kumar, CEO, Skye Air:

“The drone industry is experiencing significant growth, driven by advancements in technology and increasing applications across various sectors. In 2023, the global drone market was valued at approximately USD 23.2 billion and is projected to reach USD 133.6 billion by 2033, growing at a compound annual growth rate (CAGR) of 13.4%. Drones are revolutionizing industries such as agriculture, logistics, e-commerce, and healthcare.

In anticipation of the new Indian budget, it is expected to build on these foundations by providing targeted financial incentives and support for research and development in drone technology. This will not only boost manufacturing but also foster the development of new applications across various sectors such as agriculture, healthcare, and logistics. The key sectors like drone delivery and air taxi services are poised for substantial growth. The budget should prioritize establishing robust regulatory frameworks to ensure safe and efficient operations, alongside incentives for technological advancements and infrastructure development. Furthermore, integrating drone delivery and air taxi services within existing urban planning and transport systems will be vital for creating seamless, sustainable mobility solutions. Overall, a focused and supportive budget can catalyse the rapid expansion and integration of these innovative sectors into mainstream logistics and urban mobility networks. The budget’s focus on training and upskilling youth in drone technology, AI  further underscores the government’s commitment to nurturing a skilled workforce that can drive future innovations. Additionally, the government’s efforts to create a favourable business environment through tax incentives, streamlined customs procedures, and support for startups are likely to attract more investment into the sector. This holistic approach aims to make India a global hub for drones by 2030, leveraging the country’s strengths in innovation and engineering.”

 

“Promotion of domestic tourism: Initiatives like “Swadesh Darshan” and infrastructure development at tourist destinations can increase domestic tourism, potentially impacting the sector by Rs. 10,000-15,000 crores. This could lead to significant job creation in hotels, restaurants, transportation and other tourism-related services.