TravTalk India Online Magazine
Tourism industry is keeping its fingers crossed with hopes that the Union Budget 2025 will give some relief in TCS and GST as far as outbound is concerned and help encourage investment within India to bridge the demand-supply gap.
Rajiv Mehra, President, IATO
We expect the Budget to be in sync with the reality of the industry. Our industry should be treated as deemed exporter at par with the IT Industry under export of services. The parameters of ‘export of services’ in section 2(6) of IGST Act, 2017 may be relaxed in the case of tour operators and the services of tour operators earning forex for the country may be accorded with the status of ‘export of services’.
Jyoti Mayal, Chairperson, THSC
Union Budget is the right time for the government to go beyond infrastructure and invest in stakeholders, service providers, skilling, upskilling, and most importantly, the youth of India. The tourism and hospitality sector faces a demand-supply gap in skilled manpower, currently at 60 per cent. With the industry expanding at a rate of 20-25 per cent per year, the shortage of skilled workers is becoming more pronounced.
KB Kachru, President, HAI
Our budget expectations remain consistent with our year-long advocacy. The hospitality and tourism industry deserves recognition as a major employment generator, contributing over 9 per cent to employment and substantially to GDP. To capitalise on its potential, the government must address key issues like granting industry status to this highly capital-intensive sector.
Kanwarjeet Singh Sawhney, General Secretary, ITTA
Our expectation from the Union Budget this year is high. We are hopeful that the government will consider all our long-pending demands and act upon them. We want the government to give financial assistance via subsidised loan rates to encourage small operators, provide tax relief, incentives on foreign exchange, reduced GST for ITTA members on purchase of new EVs.
Sunil Kumar, President, TAAI
The travel and tourism sector faces mounting challenges, with unfulfilled expectations compounded by new obstacles from various verticals, threatening industry sustainability. A key demand is granting the sector industry status, recognising it as a critical revenue generator and a consistent provider of employment. Government should prioritise this high-yield sector, ensuring its significance is reflected in national planning.
Sanjeev Mehra, President, Skål International
The Budget must prioritise investments in tourism infrastructure, including airports, railways, and hospitality facilities in key tourist areas. Subsidies and promotional campaigns can boost domestic tourism, supporting state tourism boards. Simplified tax structures for travel agencies and hospitality businesses, alongside incentives, will promote growth.
Gajesh Girdhar, National Coordinator, NIMA
The government should mandate airlines to provide a minimum 5 per cent commission on publicly listed fares, ensuring fair practices for travel agents. Abolishing TCS and simplifying remittance procedures are critical to reducing operational burdens for industry stakeholders. Additionally, strict vigilance on OTAs is necessary to prevent malpractices.
Hussain Patel, Director, TripJack
The travel and tourism sector hopes the Union Budget will address its pressing challenges and pave the way for sustained growth. Rationalising GST rates for travel agents and enabling input tax credits are essential steps to reduce operational costs and improve market competitiveness. Simplifying compliance processes can further alleviate the administrative burden on businesses.
Dharmendra Singh, Director, Plaisir Hospitality Services & Chairman, Maharashtra Chapter, ADTOI
The Union Budget must extend support to inbound operators with incentives and extensive international marketing to ensure foreign tourists’ inflow into India. It must also encourage registered tour operators and guides by giving them incentives for enhancing guest experience and bringing in ethical trade practices. We hope the Budget continues to subsidise land, with interest free loan and subsidy on hotel projects.
Sameer Karnani, MD, Arunodaya Travels & MC Member, TAAI
Government’s focus is purely on inbound tourism. Our expectation from this Budget and our plea to the government is to relook at the TCS and the GST components and relax the same for the outbound travellers. This will ease the burden on us and help boost the overall tourism business. Also, there is a shortage of hotel rooms in India.
Kartik Gaggar, Founder & CEO, Slo Mo Experiences
Is India becoming a preferred destination? Absolutely! Our country due to its cultural experiences, natural beauty (north) and adrenaline activities, is becoming a highly sought after adventure destination. Just looking at the Instagram content – the Himalayan region has been covered (post pandemic) with a remarkable increase of newer destinations and unexplored places. This includes Ladakh, Uttarakhand and Himachal. Wildlife tourism has also picked up.
Sandeep Arora, Director, Brightsun Travel, India
We are optimistic about the Union Budget 2025. We hope to see a focus on policies that promote infrastructure development, particularly in key tourist destinations, to improve accessibility and enhance visitor experiences. The preservation and promotion of heritage sites is also crucial, as it will help attract more international tourists.
Compiled by Hazel Jain
