As Union Budget 2025 approaches, it has sparked waves of anticipation across the travel and tourism sector. Industry experts' pre-budget wishlists are also ready. While some expect better infrastructure, others express the desire for employment stability. In addition, many are expecting sustainable tourism practices and technological advancements.
Mallika Sheth, Co-Founder, of TealFeel, sharing the pre-budget wishlist quoted, “Everyone is talking about an expectation of the government to emphasize quality and innovation in manufacturing to be a better alternative to China. The same focus can be extended to small travel businesses across semi-urban and rural places. By encouraging the development of small businesses in these areas, the government is creating employment stability in a segment of society with income volatility. By giving tax holidays to small businesses and hotels to come up in smaller places, the government will encourage the resurrection of heritage routes and structures and shine a spotlight on parts of our country that didn’t see tourism before. With a parallel investment in infrastructure, development of airports, and road networks, the government will ensure a long-term tourism vision for the country.”
Further, stressing the need for better and improved infrastructure, Aditya Chamaria, Managing Director, Damodar Ropeway Infra Limited, stated, “Specifically, there are expectations for solid policies aimed at improving and expanding ropeway infrastructure. This would not only attract tourists but also enhance connectivity in difficult terrains and contribute to local employment generation.
To promote ropeway projects, the government is expected to provide tax exemptions, easy loan schemes, and encouragement for public-private partnerships (PPP model). Special funding is needed to expand the ropeway network in tourism hotspots like the Himalayan region, Uttarakhand, Himachal Pradesh, and the Northeast.”
Speaking on similar lines, Ramalingam S, President of Cox & Kings said, “As we look forward to the Union Budget 2025, the tourism sector is set for remarkable growth, thanks to infrastructure improvements that will make India more connected and accessible. The government's commitment to modernizing railways and enhancing regional connectivity is crucial for boosting both domestic and international travel.”
He added, “At Cox & Kings, we are particularly optimistic about budget initiatives that emphasize sustainable tourism practices, encourage domestic travel, and utilize technology to improve the overall experience for travelers. Additionally, with the increase in global wealth, India has a unique chance to position itself as a luxury travel destination, appealing to high-net-worth individuals in search of distinctive, curated experiences.”
He concluded his wishlist by saying, “We also expect policies that will further integrate India into the global tourism landscape, making it a more appealing destination for international visitors while preserving its rich cultural heritage. Ultimately, the upcoming budget has the potential to create a lasting impact and unlock the true potential of India's tourism industry.”
Last but not least, a balanced TCS structure is something that tops the wishlist of Varun Sarda, CEO, of Velocity Travel. He said, “We are hopeful that the upcoming budget will introduce essential reforms to bolster India’s travel sector. The existing TCS on international travel puts Indian agencies at a disadvantage, driving customers to foreign platforms and leading to capital outflow. A more balanced TCS structure would create a fairer environment and ease compliance.”
“Furthermore, India needs to enhance inbound tourism by dedicating more resources to global marketing, streamlining visa processes, and investing in infrastructure. Finally, promoting digital transformation through tax incentives for travel technology adoption and simplifying outbound remittance processes will strengthen the industry's competitiveness. For India to establish itself as a global travel hub, equitable taxation and increased investments in tourism are crucial,” he concluded.
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