TTT NEWS NETWORK
NEW DELHI, 23 JULY 2024:
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 revitalise the sector such as GST rationalisation, 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.
Mr. Pradeep Shetty, President of Federation of Hotel and Restaurants Association of India (FHRAI) said, “Although the budget falls short of our expectations for transformative changes in the tourism and hospitality sectors, we acknowledge its positive focus on infrastructure, rural development, and skill enhancement. These initiatives are crucial for overcoming current challenges and fostering growth. The commitment to develop iconic cultural sites and promote diverse forms of tourism is commendable and holds promise for attracting a broader range of domestic and international visitors”.
The hospitality sector is disappointed but not dejected as the overall focus on infrastructure 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.
Investments in infrastructure and specific funding for rural development are set to boost domestic travel in India. With more roads, better transportation, and improved facilities in rural areas, Indians are increasingly eager to explore destinations within their own country. Domestic travel has been on the rise, driven by a growing interest in discovering new places and experiences locally. These initiatives not only support existing tourism destinations but also encourage the creation of new attractions and facilities across India. This focus on enhancing infrastructure and rural development is expected to fuel further growth in domestic tourism, catering to the rising demand among Indians to explore the diverse landscapes and cultural richness of their homeland.
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 Honourable 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.
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