BY DEBAJYOTI CHAKRABORTY
NEW DELHI, 1 FEBRUARY 2025:
“We are glad to learn that the Union Budget 2025-26 presents a promising outlook for the hospitality space. The government’s focus on providing infrastructure status to hotels in select tourist destinations will undoubtedly ease access to financial resources and enable much-needed development in key regions. Additionally, the introduction of initiatives like the promotion of medical tourism and the provision of Mudra loans for homestays will create avenues for rural tourism within the hospitality sector. This budget aligns well with the industry’s need for support in expanding its reach, fostering local businesses, and driving sustainable growth in 50 select destinations. With these measures, we look forward to seeing a more vibrant hospitality ecosystem that will benefit both businesses and the communities they serve,” said Mr.Rajesh Ghanshani, Director of Partnerships, STAAH.
Mr. Sandeep Arora, Director of Brightsun Travel, India said, “The Union Budget 2025-26 lays a strong foundation for India’s travel and tourism sector, with a clear focus on infrastructure, heritage tourism, and fiscal relief. Investments in new airport developments, high-speed rail, and last-mile connectivity will significantly enhance accessibility, particularly to emerging destinations. The increased budget for heritage conservation aligns well with the growing global demand for cultural tourism, making India more competitive on the world stage.
Additionally, the revision in income tax slabs, raising exemptions to ₹12 lakh, could boost domestic travel demand as discretionary spending rises. However, the industry still awaits key structural reforms, such as granting infrastructure status to hospitality, GST rationalization, and simplified licensing processes—measures that could drive long-term growth and investment. While this budget is a step in the right direction, India’s tourism potential remains vast. To truly unlock it, we need continued policy focus on sustainability, digital transformation, and ease of doing business in the sector. We look forward to collaborative efforts between the government and industry stakeholders to position India as a global tourism powerhouse.”
Mr. K Syama Raju, President of FHRAI said, “I am happy to see the Union Budget 2025 focus on growing India’s tourism sector. The plan to develop the top 50 tourism destinations in partnership with state governments is a major initiative. This collaboration will not only improve infrastructure but also help spread tourism across the country, attracting more visitors and benefiting local communities. Additionally, the inclusion of hotels in these destinations in the harmonious master list is a significant move. This aligns with our long-standing request for granting of Infrastructure Status to the hospitality industry. This will facilitate access to cheaper, long-term financing, enabling hotels in these newly developed destinations to upgrade their facilities and offer world-class services, further boosting the sector. The focus on medical and wellness tourism through the ‘Heal-in-India’ initiative in the Union Budget 2025 is a forward-thinking move that will strengthen India’s position as a global leader in healthcare. India has already earned a reputation for providing world-class medical treatments at a fraction of the cost found in developed countries. By promoting ‘Heal-in-India,’ the government aims to further capitalize on this strength, attracting international patients seeking affordable, high-quality healthcare services. This initiative will not only boost medical and wellness tourism but will also create a platform for India’s healthcare industry to expand its global footprint. With the support of the government, healthcare facilities across the country will be encouraged to offer specialized treatments and services, making India an attractive destination for patients from both developed and developing nations.”
“The introduction of visa fee waivers and e-visa options for certain tourist groups will make India an even more attractive destination. Simplifying the visa process will encourage more international visitors, boosting tourism and further contributing to the economy.
The government’s focus on promoting religious tourism is also noteworthy. India’s rich spiritual and cultural heritage is a major draw for both domestic and international tourists, and the efforts to enhance infrastructure at key religious sites will create more organized, accessible, and enjoyable experiences for pilgrims and travelers alike. This will help further establish India as a leading destination for religious tourism, driving both tourism revenue and cultural exchange.
The modified UDAN scheme, aimed at enhancing regional connectivity to 120 new destinations and carrying an additional 4 crore passengers over the next 10 years, is another important initiative. This will make travel more accessible to a larger number of people, driving tourism to both popular and emerging destinations and improving economic opportunities for local communities.
The introduction of Mudra loans for homestay businesses is another positive step. It will give local entrepreneurs the chance to start and grow small tourism businesses, especially in lesser-known areas. This will help create more jobs and encourage tourism in these regions.
The National Geospatial Mission to improve mapping and spatial data will aid in better planning and development of tourism infrastructure. Overall, these measures show that the government is committed to making India a top global tourism destination and creating new opportunities for growth, jobs, and innovation in the sector,” he added.
Pranav Dangi, Founder and CEO, The Hosteller said, “The Union Budget 2025 presents a robust vision for India’s tourism sector. The emphasis on infrastructure development, support for homestays through Mudra loans, and the inclusion of hotels in the harmonized scheme will strengthen the industry’s foundation. Additionally, developing 50 tourist destinations will definitely enhance India’s position as a global travel hub. Being in the travel and hospitality space for more than a decade, I see these initiatives as the required push for accessibility, affordability, and innovation in travel setting the stage for India to emerge as a top global destination.”
Mr Ritwik Khare, Founder and CEO, ELIVAAS said, “The Union Budget 2025 provides a significant boost to tourism and hospitality, with plans for the development of 50 top destinations and enhanced infrastructure. This presents exciting opportunities for us to redefine luxury villa experiences, not only in popular tourist hotspots but also in offbeat and emerging destinations across India and the world. The government’s focus on improving connectivity through the Udaan scheme and easing visa facilitation will help elevate India’s position as a top global travel destination, ensuring seamless travel experiences for high-end tourists. The Budget’s emphasis on supporting startups through simplified regulations and increased access to funding will further enable our growth. As a startup in the luxury hospitality sector, these initiatives will strengthen our ability to innovate and offer exceptional vacation rentals in both renowned and hidden gems. We support the government’s push for local employment and the development of hyper-local tourism to tap into the rich diversity of India, boosting local economies while offering travelers unique cultural experiences. We welcome these initiatives and look forward to curating exceptional stays that align with India’s growing appeal on the global tourism map.”
Mr. Pardeep Kumar Siwach, DGM- Mayfair Spring Valley Resort said,
“The government’s renewed focus on infrastructure, connectivity, and spiritual tourism aligns with our commitment to providing world-class hospitality in one of India’s most scenic and culturally significant locations—Northeast’s Assam. The emphasis on developing top destinations and the inclusion of hotels in the harmonized infrastructure list will further strengthen the hospitality sector. Additionally, the promotion of medical tourism and the ‘Heal in India’ initiative will position India as a global wellness hub, attracting travelers seeking rejuvenation and holistic healing. We are excited about the potential tourism growth, especially with the focus on seamless travel experiences, destination-led employment generation, and a growing interest in wellness retreats and medical tourism.”
Mr. Kaulesh Kumar, General Secretary of Association of Buddhist Tour Operators -ABTO and Member – National Tourism Advisory Council -NTAC, Ministry of Tourism, Government of India said, “I welcome the budget of the honorable Finance Minister, She has emphasized on the development of the Buddhist sector and has worked to attract the countries of the whole of Asia towards religious or spiritual tourism in India and neighboring countries.”

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