By Chanchal Mukherjee
New Delhi: Experts from the tourism industry are hopeful that the Centre will provide some relief to them in the Union Budget, which will be presented on February 1. Easy E-visa facility, GST relaxation, Ease of doing business in the hospitality sector, and classification of hotels under the harmonised master list for infrastructure are some demands that the industry wants to be addressed.
The Federation of Hotel & Restaurant Associations of India recently sent recommendations to the tourism ministry for Union Budget 2025-26.
"In the suggestion, infrastructure status should be granted for hotels across all categories and convention centres built at a project cost of Rs 10 crore and above to give a fillip to the budget segment in the hotel industry, and Infrastructure status should be awarded irrespective of the city’s population," FH&RA said.
"It clears that amendment is required of the current nomenclature of Tourism Infrastructure in the Harmonised master list of infrastructure sub-sectors. In 2013, the Department of Economic Affairs granted infrastructure status to the hotel and hospitality sector. However, this benefit was only available for hotels projects worth Rs 200 crore (excluding land cost), convention centres with project costs of Rs 300 crore or limited to 3 star & higher category classified hotels located outside cities with a population of more than 1 million people," it added.
Another expert Rakesh Roy told ETV, "We expect GST relaxation and one nation one GST slab from the upcoming budget which will help the industry to grow. Currently, tourists have to pay 12 per cent GST below Rs 7499 room charge, however, above Rs 7500, they have to pay 18 per cent GST which puts extra burden on them."
India's tourism industry is emerging as a global favourite as a key driver of economic growth, the tourism sector not only promotes development but also improves the quality of life by creating various job opportunities.
With government initiatives like the 2047 vision targeting 100 million inbound tourists by 2047, World Travel & Tourism Council (WTTC) projects the sector’s GDP contribution to hit Rs 21.15 TN in 2024 and potentially Rs 43.25TN by 2034, supporting nearly 63 million jobs, the Tourism Ministry earlier informed.
The Centre promotes tourism as a vehicle for social inclusion, employment and economic progress. Committed efforts are being made to transform India into a desirable tourist destination, and the tourism sector is becoming a key driver to making India a developed country by 2047, the ministry said.
Tourism expert Rajiv Mehra told ETV Bharat, "If possible, the government should rationalise the hotel and flight rates in the upcoming budget which will help to increase tourist footfall in India."
Foreign Tourist:
As per ministry information, in 2023, India recorded 9.24 million foreign tourist arrivals (FTAs), a growth of 43.5 per cent compared to 6.44 million in 2022. FTAs during January-June 2024 were 47,78,374 (Provisional).
Domestic Tourism:
Domestic tourism plays a crucial role in the overall growth of India's tourism sector. The Centre has taken various initiatives to promote domestic tourism, such as Dekho Apna Desh, PRASHAD, Vibrant Village Programme, SWADESH 2.0, and Regional Connectivity Scheme – Udaan, it said.
Promote tourism:
Tourism in India has grown remarkably over the past two decades, with government initiatives, infrastructure development, and global branding contributing to this success, as per government information.
