BY DEBAJYOTI CHAKRABORTY
KOLKATA| NEW DELHI | MUMBAI, 23 JULY 2024:
Mr. Madhavan Menon, Executive Chairman, Thomas Cook (India) Limited (Thomas Cook, SOTC, Sterling Holidays and TCI):
“This year’s Union Budget has opened new doors to development, specifically for domestic and inbound tourism. With the focus on special development funds/ programs for the socio-cultural-religious potential of iconic temple corridors including Gaya’s Vishnupad & Mahabodhi temples into world-class pilgrim and tourist destinations (to be modelled on the success of the Kashi Vishwanath temple corridor), the Government of India’s intent is encouraging. Additionally, the comprehensive development of the Rajgir Jain Temple site; rejuvenation of the historical gem of Nalanda & Nalanda University into a major religious-tourist centre, would have a multi-pronged impact. While positioning India as a vibrant global tourism destination, it will also accelerate job creation and economic opportunities for allied sectors. The Budget also appreciated the underleveraged potential of Odisha’s tourism industry by supporting the state’s rich heritage-history, spirituality, craftsmanship and natural beauty.
Recognizing the high potential domestic cruise segment, the Union Budget announcement proposed a simpler tax regime to support/incentivize foreign cruise companies operating in India’s waters. We’re optimistic about the significant allocation of INR 11.11 lakh crore (constituting 3.4% of India’s GDP) towards infrastructure development. The development of road, rail, air, and waterways will ensure a boost to access/connectivity and affordability, and force multiplier benefits for tourism and allied sectors. When introduced, TCS was considered disadvantageous to salaried employees as their cash flows were negatively impacted. Post the Budget announcement, salaried employees can now avail of immediate credit of TCS paid on account of their foreign travel – against TDS on salary, enhancing the purchasing power of Indian consumers. The discontinued SEIS scheme should have been reinstated, as this is meaningful towards encouraging inbound tourism, foreign exchange receipts and a force multiplier for employment generation. We are disappointed to note that key pillars in India’s Tourism agenda – Aviation & Hospitality were not mentioned as part of the Budget and both standardisation of GST rates on hotel tariffs to 12% and the reduction of ATF remained unaddressed.”
Davinder Juj, General Manager Eros Hotel New Delhi:
“We welcome the provisions presented in Union Budget 2024 by Finance Minister Nirmala Sitharaman, particularly the initiative to transform several iconic locations into world-class tourist destinations. This strategic move aims to attract businesses, support entrepreneurship, and create job opportunities for local communities. We also commend the government’s dedication to positioning India as a top global travel destination through targeted investments and strategic efforts. The development of prominent spiritual and cultural sites, along with the nation’s natural and scenic attractions, will attract both domestic and international tourists, bolstering the growth of the hospitality and travel sector.”
Pradeep Shetty,
President,
The Federation of Hotel & Restaurant Associations of India:
“The hospitality sector has been pinning high hopes on the Union Budget for 2024- 25 presented by Smt. Nirmala Sitharaman today, on the backdrop of the Government of India’s stated vision of Viksit Bharat by 2047 and the critical role tourism industry holds in achieving it. However, there is nothing spectacular in the budget to bring structural changes to address the fundamental challenges it faces in a competitive world order and to accelerate the growth of the sector to be a $ 3 trillion economy by 2047.Some key demands of tourism & hospitality to revitalize the sector such as GST rationalization, granting of infrastructure status and bringing ease of doing business and policy reforms have not been considered in the budget once again, given the well accepted multiplier effect of tourism on employment and economy.
The hospitality sector is disappointed but not dejected as the overall focus on infra structure development, employment generation and skill development and development of religious tourism centres are the silver linings which will help the sector to tide over some of the critical challenges that it faces today.The government’s proactive perspective on enhancing tourism, particularly through the development of spiritual and cultural landmarks like the Vishnupath temple in Gaya and Mahabodhi temple in Bodhgaya is a commendable move that promises substantial economic and social benefits. Furthermore, the development plans for Rajgir and Nalanda represent a significant investment in promoting India’s ancient historical and educational legacy. The government’s commitment to supporting tourism in Odisha will not only highlight Odisha’s unique attractions but also encourages sustainable practices that preserve the state’s ecological balance and cultural heritage.
The focus of Budget 2024 on youth employment, skill development and job creation are welcome initiatives. The industry has been facing a shortage of skilled workforce, especially in the hospitality sector.
It is also laudable that the Finance Minister’s Budget speech highlights the Governments’ commitment to make India a premier global travel destination through targeted investment and strategic initiatives. Development of iconic spiritual sites along with promotion of cruise and beach tourism can be helpful in attracting both domestic and international tourists.”
Post-budget quote for the D2C, Travel & lifestyle sector:
By Naina Parekh, Founder, EUME – A premium luggage travel brand:
“The Union Budget 2024-2025 brings several transformative changes for the growing D2C sector. The reduction of the TDS rate for e-commerce operators from 1 percent to 0.1 percent likely to ease their financial burdens for e-commerce businesses, allowing them to concentrate more on scaling their operations and driving innovation. The proposed removal of angel tax is expected to be a game-changer for startups. This move could simplify the fundraising process and reduce the tax-related challenges faced by new ventures, fostering a more supportive environment for entrepreneurial growth.
Furthermore, the new eco policy framework has put spotlight on the development of tourism and regional growth in states like Bihar and Odisha. These states are projected to emerge as significant growth hubs, and this focused attention could stimulate local economies and open up new markets for D2C brands.”
Mr.Animesh Kumar, Head of Commercials at ibis & ibis Styles India:
“It is highly encouraging to see that the Hon’ble Finance Minister has underscored the vital role of tourism in driving our economy and boosting employment and GDP. The enhanced focus on developing tourism corridors at Vishnupad Temple and Mahabodhi Temple, modeled after the successful Kashi Vishwanath Temple initiative, will significantly contribute to tourism growth during the Amrit Kal. Additionally, the government’s support for transforming Nalanda in Bihar into a major tourist destination is a noteworthy step forward. Finance Minister Sitharaman’s announcement of an economic policy framework aimed at ushering in next-generation reforms to drive economic growth further underscores this commitment. The Union Budget’s robust allocation of Rs 11.11 lakh crore for capital expenditure also highlights a strong commitment to infrastructure development.
However, to fully harness the potential of the hospitality sector and further enhance tourism, it was crucial for the government to consider more lenient tax policies and allocate a substantial budget to elevate hotel standards. We are optimistic that future support from the Government will include granting infrastructure status to the hospitality and tourism sectors, which will help us achieve long-awaited progress and drive sustained growth”.
Mr. Jatinder Paul Singh, CEO & Co – Founder of Viacation Tourism:
” We warmly welcome the 2024 Union Budget, which underscores a visionary approach to enhancing India’s tourism sector. FM Sitharaman’s commitment to developing Nalanda and the Nalanda-Rajgir corridor as premier tourist destinations is a significant step in reviving and promoting our rich cultural heritage. The proposed comprehensive development of the Vishnupad and Mahabodhi Temple Corridors, modeled on the successful Kashi Vishwanath Temple Corridor, promises to elevate these spiritual sites to world-class pilgrim destinations.The focus on transforming Rajgir into a comprehensive development hub highlights the government’s dedication to preserving and showcasing our historical and religious landmarks. Additionally, the support for Odisha’s tourism infrastructure reflects a broader strategy to leverage India’s diverse attractions, from its scenic landscapes to its vibrant cultural and historical sites. These initiatives not only aim to position India as a global tourist destination but also to create significant job opportunities and stimulate investments across various sectors. We applaud this forward-thinking approach, which will undoubtedly enhance India’s global tourism profile and drive economic growth.”
Sandeep Arora, Director of Brightsun Travel, India:
“We welcome the 2024 budget, especially the focus on boosting spiritual tourism which not only honours the country’s rich cultural heritage but also opens up new avenues for travel and tourism. The special focus on Bihar and Odisha will see extensive development and promotion of religious and historical sites such as Bodh Gaya, Rajgir and Nalanda. Odisha also has a great potential as a destination for religious and beach tourism. The new initiatives to improve infrastructure and connectivity in these offbeat destinations will attract both domestic and international tourists, offering a much-needed boost to the local economy.”
Chhavi Chadha, Founder, Bespoke Tailormade Experiences:
“The latest budget announcement will bring a significant boost for tourism in India. The development of the Vishnupad and Mahabodhi temple corridors will transform these sites into world-class pilgrim and tourist destinations. Comprehensive initiatives in Rajgir and Nalanda will attract history and culture enthusiasts from all over the world. Additionally, the focus on Odisha underscores the government’s commitment to enhancing India’s diverse tourism offerings, making it an even more compelling destination for global travelers.”
Chaitanya Tendolkar, Director of Westbay Resort & Spa:
“The reduction of personal income tax increases the personal wealth of individuals for investment and discretionary spending. This will surely give a boost to the tourism industry. The budget also promises a simplification in GST which might further be beneficial for the hospitality industry. But there was no direct benefit to Konkan tourism in the given budget.”
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