Industry leaders are presenting a unified front ahead of the Union Budget, with core demands centred on rationalising the GST structure, obtaining industry status, and securing increased funding for global marketing.
TT Bureau
The travel and tourism industry has high expectations from this year’s Union Budget. The industry leaders share a vision for the sector, hoping for a favourable budget. Ravi Gosain, President, IATO, dreams of a global ‘Brand India’ campaign, rationalised GST, and improved air connectivity. “Inbound tourism needs focused budgetary support in 2026. IATO expects the government to prioritise international marketing of Brand India, especially in long-haul and emerging source markets, with an adequately funded global promotion campaign. Setting up of ‘India Tourism Promotion Board’ dedicated to promoting India will be a great step in this direction. We also look forward to rationalisation of GST on tourism services, extension of e-visa facilities to more countries, and incentives for airlines to improve international air connectivity to tier II and tier III destinations,” he said, adding that strengthening infrastructure, safety, and ease of travel will be critical if India is to achieve its inbound tourism targets and compete effectively with global destinations.”
Sunil Kumar, President, TAAI, said, “The industry’s foremost expectation is the long-pending grant of industry status, which is critical for supporting a rapidly expanding ecosystem of stakeholders. A comprehensive review of GST is equally essential, with a reduction from 18 per cent to 12 per cent to prevent business leakages overseas and strengthen domestic sales,” Kumar said.
“The current TCS mechanism also needs clearer definition, as agencies merely collect it on behalf of customers and face undue compliance risks. Additionally, government allocation for tourism must increase manifold, with a sharp focus on inbound promotion. Aggressive global marketing, stronger public–private partnerships, and sustained overseas campaigns are vital to unlock India’s vast inbound tourism potential,” he added. Sanjeev Mehra, President, Skål International India, said, “I believe, tourism must be recognised as a strategic economic pillar. Rationalised GST for hotels, uniform taxation, industry status, and a long-term vision for tourism infrastructure will bring much-needed stability. Improved air connectivity, focused promotion of destinations like Rajasthan, Kerala, and the Northeast, and introducing GST/VAT refunds for global travellers can boost inbound tourism and employment.”
Infrastructure status to hotels apart from rationalised taxes, is what every hotelier dreams of. KB Kachru, President, HAI, said, “We urge policymakers to prioritise sector-specific reforms to unlock the hospitality industry’s full potential. Hotels are powerful job creators across all skill levels, with strong participation from women and especially-abled persons, and are vital in achieving the India Vision 2047 of Atmanirbhar, Viksit Bharat. As service exporters, hotels contribute significantly to GDP, foreign exchange earnings, and India’s global soft power. We recommend granting infrastructure status to hotels, rationalising direct and indirect taxes, addressing GST anomalies, enabling higher depreciation for hotel buildings, simplifying licensing through single-window clearances, incentivising sustainability, improving connectivity, and investing in skilling to build a future-ready ecosystem.”
Even though outbound tourism has been great for operators, Himanshu Patil, President OTOAI and Director, Kesari Tours, underlined practical challenges. “A key concern is TCS on overseas packages. Since this tax is collected upfront, it puts pressure on working capital for operators. What the industry is looking for is fairness. If Indian tour operators are expected to follow GST rules, TCS provisions and audits, then overseas platforms catering to Indian customers should be held to similar standards.”
Policies that are complementary
Not just for hospitality, the industry also seeks industry status for tourism. Abbas Moiz, President, TAFI, said, “It is imperative for the travel industry to be granted official industry status. Although the Finance Ministry has not formally solicited recommendations for the upcoming Budget from TAFI. FAITH, with TAFI as a member, has submitted a comprehensive paper detailing budgetary suggestions for the travel industry. TAFI advocates for unambiguous and transparent budget proposals.”
Bobby KS Sawhney, Secretary, Indian Tourist Transporters Association (ITTA), rallies for tourism infrastructure. “Key concerns include rationalising speed governor norms for tourist vehicles, which currently restrict efficiency. We also urge improved loan accessibility, reinstatement of subsidised interest rates, and practical financing solutions for imported tourist vehicles,” he said, adding that the government should accelerate development of existing and new tourist destinations, enhance road and air connectivity in tier II and III cities, and offer tax incentives to reduce costs.
Lower GST on MICE
Nitin Mittal, National Coordinator, NIMA, hopes the Union Budget will address a critical area for MICE, which is GST rationalisation through lower or uniform rates on event services, venue rentals, and bundled hospitality offerings. “This is key to reduce costs and enhance India’s competitiveness against destinations like Singapore and Dubai. The sector also seeks ease-of-doing-business reforms,” Mittal added. Ved Khanna, President, ADTOI, said, “Our expectation is a rationalisation of taxation to support the vision of Viksit Bharat and a $3 trillion tourism economy. We strongly advocate a ‘one nation, one tax’ approach for tourism services, beginning with a single GST slab. This will simplify compliance, reduce cascading effects, and ease the burden on small and largely unorganised players. Additionally, an LTC 2.0 incentive for travel to lesser-known destinations can drive regional development.”
