Hope, Caution And Alarm For The Travel Industry

The Union Budget 2023-24 was presented by Union Finance Minister Nirmala Sitharaman on February 1, 2023. Expectations ran high, as every industry and its verticals have their own wishlist and pain areas which they look forward to being addressed. The travel, tourism and hospitality industry has its own long pending list of unaddressed issues for which constant representations have been made over the years. As usual, they remained unaddressed even in this budget. What was presented was a progressive, growth-oriented agenda for tourism at a macro level. However, the issues relating to the immediate survival and global competitiveness of the industry remained unaddressed. To add insult to injury, a massive hike in the TCS regime was proposed.

- Gurjit Singh Ahuja

Finally, "T" for Tourism did find a mention in the Budget 2023-24 presented by the Finance Minister. The government's enthusiasm towards the development of the tourism footprint, infrastructure, and encouragement towards "Dekho Apna Desh" and "Swadesh Darshan" came across very clearly with its announcements of multiple schemes encouraging domestic tourism. All this in the backdrop of the government shutting down the overseas India Tourism offices that were responsible for promoting inbound travel into India from the overseas markets sent out mixed signals, akin to a race driver pushing the accelerator with the 'handUnion brakes' pulled.

• 50 destinations to be developed with a focus on local-level tourism and promotion of Gl products and handicrafts to boost local arts and artisans.

• Infrastructural focus announcing 50 new airports, heliports, water aerodromes, and revival of advanced landing grounds to enhance regional access and connectivity, also generating direct and indirect job opportunities.

• Enhanced budgetary outlays for railways, roads, and highways to help long-term growth of the domestic travel and tourism industry.

• Income tax rebates to taxpayers to result in an increase in disposable incomes thus indirectly encouraging travel.

The Industry Industry associations were disappointed as the Union Budget failed to provide the travel and tourism industry with the anticipated respite on rationalisation of GST. Also, the issue of TCS, exemption of GST on foreign exchange earnings, and refund of tax on shopping under the Tax Refund to Tourist (TRT) Scheme found no mention.