Union Budget 2023 Impact on Hospitality and Travel & Tourism Industries

Hospitality and Travel & Tourism industries are closely linked and among the major industries contributing to the economic development of the country. Hospitality industry, which is one of the foremost providers for skilled and semi skilled jobs in the country was, over the last few years, due to the pandemic, adversely affected. Many F&B outlets, even hotels had to be shut and a few of them still remain so, in spite of the industry slowly returning back to normal. Due to the industry still being under stress, it was looking up to the Finance Minister announcing some concessions in the budget. The FM has, to some degree, come up with some measures which are welcome by the hospitality industry. Ashok Malkani examines the concessions that the industry has hailed.

Hospitality and travel and tourism industries have contributed to the not only the economic growth of the country but also to the rise in GDP Gross domestic product). Both the sectors underwent a difficult time during the pandemic. According to the UNWTO United Nations’ World Tourism Organisation), COVID-19 pushed back international tourism by almost 30 years. However, slowly and steadily, both sectors have recovered. Today, he hospitality sector accounts for more that 8% of the country’s work force.

According World Travel Tourism Council's WTTC’s) latest Economic Impact Report EIR) he sector's contribution to the nation’s economy is believed to have been about Rs 5.9 trillion S 215 billion) in 2022, 1% above 2019 levels. The forecast also reveals the sector is expected to create over 24 million jobs over the next decade, averaging more han 2.4 million new jobs every year. The hospitality industry is one of the foremost providers of skilled and semi-skilled jobs in the country, claims Ruchyeta Bhatia, Co-Founder of Brewworks Pvt. Ltd. The Food Beverage industry accounts for about 3% of India’s GDP and almost two-third of the overall retail market in India, discloses Nesco Foods’ Vice President, Bhushan Anant Jalgaonkar.

Under India’s G20 Presidency, the Indian ourism sector will contribute S 65 billion orex to GDP and generate 140 million jobs. The Ministry of Tourism will be organizing he country’s first Global Tourism Summit in New Delhi from April 10-12, 2023, where all G-20 member countries will be invited to participate.