Monday, February 3, 2025

The Federation of Associations in Indian Tourism and Hospitality (FAITH)welcomes the Union Budget 2025-26, recognizing its progressive approach towards investment-driven, employment-led growth in the tourism sector. The budget outlines key proposals for infrastructure development, inbound tourism, and skill enhancement, creating a strong foundation for sustainable growth.

Rajiv Mehra, General Secretary, FAITH, shared his insights on the budget’s impact:

“The intent in the Union Budget proposals is progressive and in the right direction for Indian tourism, travel, and hospitality. It covers multiple parameters under the  Investment in Tourism for Employment-led Growth theme.

New tourism destinations in India will likely emerge by developing 50 top tourist sites in partnership with states through a challenge mode initiative. Fast-tracking hotel infrastructure in these destinations will further enhance accommodation availability and quality.

Through performance-linked incentives for states to ensure effective destination management, existing tourism destinations will be significantly improved, leading to better infrastructure, visitor experiences, and cleanliness.

Inbound tourism is set to benefit from the e-visa waiver for select tourist groups. The government will significantly boost medical and Buddhist tourism through enhanced support from the ‘Heal in India’ initiative and the expansion of Buddhist circuits.

The UDAN RCS scheme’s extension to 120 destinations, targeting four crore air travelers and including helicopter and hill routes, will stimulate domestic travel across mainstream, remote, and hill destinations, fostering adventure and niche tourism. Additionally, modifications in the shipbuilding sector are expected to promote domestic cruise tourism.

Alternative accommodation will expand with MUDRA loans for homestays, boosting the local tourism economy. Increasing TCS exemption from ₹7 lakh to ₹10 lakh is a positive step, benefiting travel agents and the outbound tourism sector.

 Skilling in hospitality will see significant growth, with enhanced support for hotel management training programs, ensuring a better-equipped workforce for the industry. Furthermore, modifications in the direct tax code will increase disposable income, leading to higher spending on travel, tourism, and hospitality.

Overall, the Union Budget 2025-26 provides a positive framework for multiple pillars of tourism, including domestic, inbound, adventure, cruise, medical, Buddhist tourism, capital spending, and skilling support. FAITH remains committed to collaborating with industry stakeholders and the government to drive sustainable and long-term growth in India’s tourism sector.”

FAITH looks forward to leveraging these policy measures to position India as a premier global travel destination, driving economic growth and employment opportunities in the tourism and hospitality industry.

 



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