LEAD NEWS : SHARE PRICES OF TRAVEL AND TOURISM STOCKS RALLIES SHARPLY AFTER THE UNION  BUDGET  2026-27 ANOUNCEMENT, REFLECTING THE POSITIVE MOOD OF THE INDUSTRY LEADERS

LEAD NEWS : SHARE PRICES OF TRAVEL AND TOURISM STOCKS RALLIES SHARPLY AFTER THE UNION  BUDGET  2026-27 ANOUNCEMENT, REFLECTING THE POSITIVE MOOD OF THE INDUSTRY LEADERS

(Union Budget 2026–27 Delivers Unprecedented Boost to Tourism, Culture and Heritage:  Gajendra Singh Shekhawat)

BY DEBAJYOTI CHAKRABORTY

KOLKATA | 2 FEBRUARY 2026

The share prices of  travel and tourism sector stocks like Ease My Trip, Lemon Tree Hotels, ITC, Yatra Online, EIH, IRCTC, Mahindra Holidays, TBO Tek, BLS International Services etc rallied sharply after the budget announcement of Finance Minister Nirmala Sitaraman, also reflecting the positive mood of the industry leaders.

(Mr. Gajendra Singh Shekawat)

The Union Minister of Tourism and Culture, Mr. Gajendra Singh Shekhawat, has welcomed the Union Budget 2026–27, stating that it provides unprecedented and far-beyond-expectations encouragement to the tourism and culture sectors. In a message shared on social media, the Minister described the Budget as forward-looking and transformative, saying it will accelerate development and firmly position India as a global tourism hub and cultural leader.

He extended heartfelt congratulations to PM , Mr.Narendra Modi for his visionary leadership and expressed gratitude to FM Smt. Nirmala Sitharaman for presenting a Budget that gives an unparalleled boost to heritage, spirituality, skills, and sustainable tourism growth.

The Budget outlines a wide range of initiatives aimed at strengthening tourism infrastructure, preserving cultural heritage, promoting eco-tourism, and enhancing skill development.

Major Announcements:

The Budget proposes the development of thematic tourism trails across India, including:

• Mountain Trails in Himachal Pradesh, Uttarakhand, and Jammu & Kashmir
• Eco & Nature Trails in Araku Valley (Eastern Ghats) and Podhigai Malai (Western Ghats)
• Turtle Trails along key nesting sites in Odisha, Karnataka, and Kerala
• Bird Watching Trails at Pulicat Lake in Andhra Pradesh and Tamil Nadu

A major cultural initiative includes the development of 15 archaeological sites such as Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace into vibrant, experiential destinations blending conservation with visitor engagement.

To strengthen spiritual tourism, a new scheme for Buddhist Circuits in the North-East will be launched, covering Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura. The scheme will include preservation of temples and monasteries, pilgrimage interpretation centres, improved connectivity, and pilgrim amenities.

Skill development receives a significant push with a proposal to provide world-class training to 10,000 tour guides across 20 major destinations through a pilot project in collaboration with the Indian Institutes of Management (IIMs) using both online and offline modes.

In a major education reform, the National Council for Hotel Management will be developed into a National Institute of Hospitality, strengthening professional training and aligning hospitality education with global standards.

To promote India as a medical tourism hub, the Budget proposes support to states for establishing five regional medical tourism hubs.

India will also host the first Global Big Cat Summit, bringing together leaders and ministers from 95 countries, further reinforcing India’s leadership in wildlife conservation and eco-tourism diplomacy.

Additionally, the Budget envisions the creation of five major tourism destinations in the Purvodaya States, supporting balanced regional development.

Shri Shekhawat emphasized that these initiatives will generate employment, promote sustainable practices, strengthen local economies, and deepen global engagement with India’s civilizational heritage.

Key Highlights:

1. Thematic Tourism Trails launched across mountains, coasts, wetlands, and biodiversity zones.
2. 15 Iconic Archaeological Sites to be transformed into experiential heritage destinations.
3. Buddhist Circuit Development in North-East with preservation, connectivity, and pilgrim facilities.
4. 10,000 Tour Guides to Receive IIM-led World-Class Training.
5. National Council for Hotel Management to Become National Institute of Hospitality.
6. Five Regional Medical Tourism Hubs & Global Big Cat Summit to Boost Niche Tourism.

REACTIONS FROM TRAVEL AND TOURISM SECTOR LEADERS:

( Mr. Anil Chadha)

Mr. Anil Chadha, Managing Director, ITC Hotels Limited “The Budget’s renewed focus on tourism is a strong vote of confidence in an industry that creates livelihoods at scale, supporting local entrepreneurs, artisans, and communities across the tourism value chain. The proposed upgradation of National IHMs and the NCHMT (National Council for Hotel Management and Catering Technology), alongside structured guide skilling initiatives, will significantly strengthen service quality and global competitiveness in hospitality. The emphasis on medical tourism further positions India as a trusted destination combining care, capability and hospitality. Equally transformative is the push towards a digital and AI-enabled tourism knowledge framework, which will enhance discoverability, planning and destination management. The Budget’s ‘Growth Connectors’—seven high speed rail corridors will enhance connectivity between western, southern & eastern parts of the country. The focus on adventure tourism including trekking, hiking and wildlife trails along with development of Buddhist circuits across North-East states highlights the importance of responsible, experience-led growth that protects the very destinations travellers seek. Together, these measures present a timely opportunity to build India’s tourism advantage on quality, authenticity and sustainability.”

( Dr. Kaulesh Kumar)

“The Finance Minister has filled the small vessel of tourism with the vast ocean of all-round development. Thank you, Minister, for emphasizing the promotion of domestic, inbound, and outbound tourism, as well as water, air, and land-connected tourism in your budget. Thank you for focusing on the northeastern states and the Buddhist circuit, as well as cultural and spiritual tourism,” said Dr. Kaulesh Kumar General Secretary Association of Buddhist Tour Operators ( ABTO)

“The Budget reinforces the government’s sustained focus on travel and tourism as a long-term growth driver. The rationalisation of TCS on overseas tour packages is a welcome step that addresses upfront liquidity impact on Indian outbound travellers. The government’s infrastructure-led investments have played an important role in supporting the growth of domestic tourism, and it is encouraging to see this momentum being sustained. Continued focus on regional connectivity and destination development, along with an emphasis on skilling and the creation of a national digital repository for destinations, will help improve destination discovery and enhance the overall traveller experience,” said  Mr Rajesh Magow, Chair, FICCI Tourism Committee and Co-Founder and Group CEO, MakeMyTrip.

( Ms. Richa Adhia)

“We appreciate the government’s focus in the Union Budget 2026 on creating dignified livelihood opportunities and nurturing young talent within India’s hospitality sector. Investments in professional guides, world-class hospitality talent hubs, and skill development initiatives will raise service standards and strengthen local employment. Alongside these workforce measures, efforts to reimagine heritage sites, promote digital destinations, expand eco-trails, and develop sustainable adventure and medical tourism are expected to boost visitor engagement and attract global travellers. Together, these initiatives signal a forward-looking and positive Budget for the hospitality industry,” adds Ms. Richa Adhia, managing Durector of Eight Continents Hotels & Resorts, which has massive expansion plans to have 50 hotels by 2030.

( Mr. Ravi Gosain)

“The Union Budget’s clear focus on tourism is timely and encouraging. It rightly recognizes tourism as a major contributor to employment generation, foreign exchange earnings, and inclusive economic growth. We  welcome the emphasis on institution-building through the National Institute of Hospitality and the large-scale skilling of tourist guides, stating that these measures will strengthen professionalism and enhance India’s global tourism competitiveness. The proposed National Destination Digital Knowledge Grid as a forward-looking initiative that will help preserve India’s cultural and heritage assets while benefiting local communities and tourism stakeholders. The industry is particularly encouraged by the focus on eco-tourism, trekking, and wildlife trails, in line with global demand for sustainable and experience-based travel. While the 2% TCS on outbound spending is a positive regulatory step, the industry is disappointed by the absence of a dedicated allocation for overseas tourism promotion, which is crucial for driving inbound tourism in the country,” said Mr. Ravi Gosain, President of Indian Association of Tourism  Operators (IATO).

( Smt. Jyoti Mayal)

“I welcome Budget 2026 and delighted to see that several initiatives we had proposed during our meeting with the Finance Minister have been incorporated. The proposal to set up the first-ever National Institute of Hospitality, which I have been advocating for over time and had discussed with the Finance Minister during budget consultations. This initiative will be transformative for hospitality education and skill development, creating a future-ready workforce for India’s growing tourism and hospitality sector.Reducing TCS to 2% is a welcome, pro-growth move that eases compliance and boosts liquidity, I have been advocating for this since I was the TAAI President & reiterated this in our November meeting with FM, this will make international travel more affordable and bring in ease of doing business is a very positive move, it will boost tourism, encourage global exposure, and benefit both travelers and the travel industry. Coupled with a focus on eco-friendly initiatives and enhanced tourism connectivity, the budget opens new avenues for travel service providers, driving sustainable growth and enriched experiences for travellersFor tourism, the focus on positioning India as a global hub for affordable, high-quality healthcare is visionary. Improved last-mile connectivity to remote destinations will boost tourism, while strengthening spiritual tourism in the North East will attract global pilgrims and foster cultural exchange.The pilot to train 10,000 guides at iconic destinations, supported by IIMs, reflects a strong commitment to grassroots skilling and enhancing visitor experiences.Infrastructure development is another positive step, laying the foundation for improved connectivity, economic growth, and long-term sectoral development,” says Smt. Jyoti Mayal, Travel and Hospitality Skill Council.

( Mr. Zubin Karkaria)

“The General  Budget charts a strong roadmap to Vision 2047, positioning tourism, mobility, and human capital as engines of long-term growth. By recognising tourism as a catalyst for jobs, foreign exchange, and regional development, the government is building a more competitive and resilient travel ecosystem. The emphasis on capacity building is encouraging with measures towards infrastructure development, skill enhancement, and institutional support that will help strengthen service quality, destination readiness, and ease of doing business. Initiatives like the National Institute of Hospitality, upskilling of tourist guides, and the National Destination Digital Knowledge Grid will have an enduring impact in the long-term. Sustainable, heritage, and experiential tourism, along with support for medical tourism hubs, will diversify India’s offerings, while reductions in TCS on overseas tour packages and TDS under the Liberalised Remittance Scheme for education will ease financial pressure on Indian travellers and students, boosting global mobility and connectivity,” says Mr. Zubin Karkaria,  Founder & CEO, VFS Global.