The Budget 2025-26 recognises and highlights the importance of tourism and hospitality as an engine of job creation and promoter of inclusive growth. An infusion of Rs 20,000 crore to increase tourism-led employment will help several states that house top tourist locations build infrastructure and boost connectivity. However, the onus has been put on states to acquire land to build hotels and other required facilities.

The top 50 tourist destination sites in the country will be developed in partnership with states through a challenge mode. The key takeaway for us is that Hotels in those destinations will be included in the infrastructure harmonised master list (HML). HAI looks forward to knowing details like the identified 50 destinations, etc.

There is a continued focus on connectivity, ease of travel, and spiritual tourism. In addition to projecting India as the birthplace of Lord Ram through the Ramayana circuit, the development and promotion of the Buddhist circuit will also be a priority. The objective would be to increase South East Asian tourist footfall by including visa fee waivers. The Medical tourism segment, or Heal in India, is another segment that will receive attention.

The Udan scheme will be extended to connect 120 more destinations, further promoting regional connectivity.

The state of Bihar, with its Buddhist sites, has been identified as a potential site for improving and expanding the existing Patna airport and providing financial support for a greenfield airport project.

The partnership with states in tourism development, with performance-linked incentives, MUDRA loans, and intensive skill development for youth, will further strengthen tourism.

The budget clearly overrode the achievement of Vikas Bharat through the three Ds: Democracy, Demography, and Demand. We hope that a part of the additional disposal income in people’s hands through the relief on income tax will be directed towards hotel accommodation to push demand.

The Hotel Association of India has been actively advocating for government-private sector partnerships. It remains committed to collaborating with authorities to ensure the sustainable development of Indian hospitality, even in the most remote areas.

Our Hon’ble PM, the industry’s best ambassador, has identified tourism as a key pillar of the economy.

Even today, while commenting on the budget, the prime minister spoke about tourism, saying the sector has significant potential. “Hotels will be built at 50 important tourist stations,” he said. He added that including hotels under infrastructure would strengthen tourism and support the hospitality sector, which employs a large workforce.

However, the key industry demand that all hotel projects, irrespective of location and star categorisation, be accorded the status of infrastructure needs clarity and execution. The asks for ease of doing business, rationalisation of taxes, and support in reducing the high and largely fixed costs of hotel operations also require attention.

With its vast potential to generate employment across skill levels, including opportunities for women and differently-abled individuals, the hospitality sector can play a crucial role in realising the “Viksit Bharat “Vision.

The timing, extent, and quantum of support from the government at all levels will determine whether the sector’s true and full potential is unleashed. Achieving our targets for 2047 would be clearly dependent on the execution of the intent!