The hotel industry in the country has welcomed the emphasis that the government has put on the tourism sector in the Union Budget 2023-24 presented in the Parliament on February 1, 2023. The proposal by the finance minister to put the sector on “mission mode ” to attract more domestic and foreign tourists has been attracted by the stakeholders. At the same time, sidelining the key long pending demands of the industry by the government didn’t go down well with the stakeholders. “In my view, the budget is very promising for our sector this year. Tourism has in some way been given the spotlight that was required for a long time. The focus on ‘Bharat Dekho’ is commendable as this is an initiative that will encourage Indians to explore India and see their own country like never before,” said Chander Baljee, CMD, Royal Orchid Hotels Ltd, adding,
“However, there are several areas, especially in the hospitality industry that have been missed. There are no loans for long terms as well as no industry status which has been our request for years.”
While the push on infrastructure such as 50 additional airports, 50 integrated tourism destinations is a welcome step, Baljee feels that they are long haul in nature and might take 5 to 10 years to complete.
Vineet Verma, director, Brigade Hospitality welcomed the emphasis on tourism infrastructure creation in the Union Budget. “A special mention on Tourism, by the finance minister, has been a most welcome gesture. An acknowledgment that tourism is indeed critical to our economic growth, is encouraging and bodes well for the industry. We welcome the measures announced to further promote tourism and to identify 50 projects for last mile connectivity improvement. The addition of 50 airports, heliports and waterdromes should also benefit the sector. Overall, a satisfactory start but more such initiatives are expected in the days ahead.” Reacting to the Union Budget 2023-24, SP Jain, CMD, Pride Hotels Limited, expressed the hope that the budget will give the much needed impetus to domestic tourism in the country. “The budget specifies that 50 tourist destinations will be selected and developed as a whole package for domestic and international tourism. We welcome this announcement. For domestic tourism “Dekho Apna Desh” has already been promoted very widely now as well as international tourism too will be revived with these initiatives. The tourist infrastructure will also be provided on the border and in North East India which will be highly beneficial for the inflow of tourists.”
Ritesh Agarwal, founder and group CEO, OYO also welcomed the thrust on the infrastructure front, especially in improving the urban infrastructure through an Urban Infrastructure Development Fund (UIDF). “It is heartening to see the extra emphasis given to tourism this year. The FM has identified tourism as one of the key sectors, with huge potential to generate employment for the youth, and reiterated the government’s commitment to promote tourism on ‘mission mode’.”
Agarwal also hailed the move to develop 50 cities across India as a complete package for domestic and international tourism, and developed an app to ensure all the key metrics related to travel and tourism for the said cities are regularly updated. “We also launched the move to incentivize states to set up ‘Unity Malls’ in their most popular tourism destination for promotion of GI, ‘Made in India’ products and handicrafts. Integrated development of theme-based tourism circuits under the ‘Swadesh Darshan Scheme’, with special focus on improving infrastructure and amenities in border villages will provide a much-needed boost to rural and agricultural tourism.”
“The government’s focus on tourism promotion is evident in their opening up opportunities for joint participation of the states and private players in Government programs via the PPP mode. This will be a major driver for growth to tourism across India. Further, the development of 50 new airports and 50 destinations through challenge mode to develop a consolidated package for both domestic and international tourism also augurs well for India’s hospitality industry that has long been grappled with infrastructure bottlenecks,” said Kush Kapoor, CEO, Roseate Hotels & Resorts.
Raoof Dhanani, managing director, Sayaji Hotels, said, “Budget 2023 has been revolutionary in its efforts to give relief to every sector. Opportunity for job creation and entrepreneurship in the tourism sector is the need of the hour. Developing a package for domestic and international tourism out of 50 tourist destinations is a great start. Revival of fifty additional airports, water aerodromes, advanced landing grounds and heliports will help in enhancing regional air connectivity in the country. Along with these measures GST reduction was also expected which unfortunately was missed.”
Priya Thakur, founder, Larisa Hotels & Resorts, also praised the added thrust on tourism infrastructure creation in the Budget. We are very pleased to see that the Union Budget for 2023–2024 includes funding for the development of tourist sites in India for both domestic and foreign visitors. With the promotion of local tourist spots and spaces, it will not only result in the upliftment of these cities but will also provide more jobs and opportunities for the locals all around the year.”
“Finance minister’s decision to take tourism on a mission mode in Budget 2023 with active participation of states, convergence of government programs and public-private partnerships is a great move. An app which will provide a real time information of tourist destinations in addition to aspects such as physical connectivity, virtual connectivity, tourist guides, food streets and tourists’ security will surely enhance the tourist experience. “50 destinations to be developed as a complete tourist package will promote domestic as well as foreign tourism,” said Pushpendra Bansal, COO of Lords Hotels and Resorts.
“The latest budget announcement has come as positive news for the tourism and hospitality industry. The “mission mode” that is set to offer top services in 50 destinations along with the ‘Dekho Apna Desh’ initiative, will boost multiple local economies, thus also creating entrepreneurial opportunities within the industry. We are curious and looking forward to the implementation of these initiatives for the growth of tourism in India,” said Dharamveer Singh Chouhan, co-founder & CEO, Zostel.
Terming the Budget a progressive, growth oriented one, Rajit V Shetty, MD, Ramee Group of Hotels said that the proposals will help the industry bounce back faster from the impact of the global pandemic. “The budget has proposed a reduction in the corporate tax rate for new hotels, restaurants, and tourism-related businesses. This move is expected to encourage investment in the hospitality sector and provide a boost to the industry. The government has also proposed a scheme to provide easy access to credit for small businesses in the hospitality sector, which will help them to cope with the impact of the pandemic.”
“The push from the government for the launch of mission mode in 50 tourist destinations can lead to a boom in business and sales in these regions. This will help the entire sector of ‘Travel Tourism & Hospitality’ survive, revive, and economically support India in its quest to become the world’s largest hub. The ‘Dekho Apna Desh’ scheme is a great initiative to encourage travelers within their own country and will foster domestic tourism,” feels Akaal Singh Manchanda, founder and director of operations, Zuper Hotels & Resorts.