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Pradeep Shetty
President of FHRAI
The hospitality sector has been pinning high hopes on the Union Budget for 2024- 25 presented by Smt. Nirmala Sitharaman today, on the backdrop of the Government of India’s stated vision of Viksit Bharat by 2047 and the critical role tourism industry holds in achieving it. However, there is nothing spectacular in the budget to bring structural changes to address the fundamental challenges it faces in a competitive world order and to accelerate the growth of the sector to be a $ 3 trillion economy by 2047.
Some key demands of tourism & hospitality to revitalise the sector such as GST rationalisation, granting of infrastructure status and bringing ease of doing business and policy reforms have not been considered in the budget once again, given the well accepted multiplier effect of tourism on employment and economy. The hospitality sector is disappointed but not dejected as the overall focus on infrastructure development, employment generation and skill development and development of religious tourism centres are the silver linings which will help the sector to tide over some of the critical challenges that it faces today. The focus of Budget 2024 on youth employment, skill development and job creation are welcome initiatives. The industry has been facing a shortage of skilled workforce,especially in the hospitality sector.
It is also laudable that the Honourable Finance Minister’s Budget speech highlights the Governments’ commitment to make India a premier global travel destination through targeted investment and strategic initiatives. Development of iconic spiritual sites along with promotion of cruise and beach tourism can be helpful in attracting both domestic and international tourists.
Shrikant Goenka
Chairman, Indian Association of Amusement Parks and Industries (IAAPI)
INDIA TO BECOME GLOBAL TOURISM DESTINATION
The Hon’ble Finance Minister of India in her annual budget presentation on 23rd July 2024 announced that the Government of India is working towards many development projects to make India the global Tourism destination shortly. This will give a tremendous boost to the tourism sector and attractions Industry in India.
The budget provides for good investments for development of Rajgir, Nalanda, Vishnupad & Mahabodhi temple and various sculptural marvels of India and these will make wonderful corridors to attract huge investments to create opportunity for religious & mythological theme parks & attractions. It will help in building the tourism ecosystem around these circuits, thereby generating large direct and indirect employment and overall social infrastructural development.
Positioning India as a global tourist destination will also stimulate domestic & global investments and unlock economic opportunities for the entire leisure & entertainment sectors.
Jurgen Bailom
President and CEO of Cordelia Cruises
“We welcome the government’s recognition of the tremendous potential for cruise tourism in India and the introduction of a simpler tax regime for foreign shipping companies operating domestic cruises. These measures, along with the presumptive taxation regime for cruise ship operations by non-residents, are likely to boost infrastructure development and create employment opportunities.
We also hope that future policies will extend benefits to homegrown companies like ours, which are driving this industry’s growth. It is crucial that incentives and support are provided to domestic operators to ensure a level playing field and stimulate further growth within the industry. Furthermore, we seek clarity regarding the TCS mandate on cruise services. We believe that exempting cruise services from the TCS mandate would make cruising more cost-effective, boost bookings, and ultimately benefit the industry and our economy.”
Nikhil Sharma
Managing Director and Area Senior Vice President- South Asia, Radisson Hotel Group
“We welcome the Union Budget 2024-2025 which focuses on positioning India as a global tourism hub through progressive initiatives. The surge in spiritual tourism has been recognized, and we are excited to see the sector receiving much-needed support in this year’s budget. The development of road connectivity projects, with a special emphasis on spiritual and cultural corridors, underscores the Government of India’s commitment to fueling the growth of the country’s rich cultural and spiritual network of tourism. At Radisson Hotel Group, we have always focused on Tier II and III cities, leveraging a first-mover advantage with 50% of our portfolio in these regions. Our strategic commitment to these destinations aligns with the government’s vision, allowing us to meet the increasing demand for spiritual experiences and further strengthen our presence across India. We are optimistic that this development will not only propel the domestic tourism sector but will also provide an opportunity for foreign tourists to further explore the rich culture of India.” – Nikhil Sharma, Managing Director and Area Senior Vice President- South Asia, Radisson Hotel Group
Raoof Dhanani
Managing Director, Sayaji Hotels Ltd.
“The 2024 Union Budget presents a transformative opportunity for the travel and tourism industry, underscoring the government’s commitment to enhancing infrastructure and promoting sustainable growth. The proposed infrastructure status for hotels is a crucial step toward increasing the supply of branded accommodations, which is essential for attracting both domestic and international tourists. Additionally, the rationalization of Goods and Services Tax (GST) and modifications to the Leave Travel Allowance (LTA) will further stimulate domestic travel, encouraging more Indians to explore diverse destinations across the country.
With initiatives like ‘Swadesh Darshan’ aimed at developing iconic tourist sites, we anticipate a significant boost in domestic tourism, potentially generating an economic impact of Rs 10,000-15,000 crore. This budget not only aims to create jobs in hotels, restaurants, and transportation but also emphasizes the importance of promoting lesser-known destinations to alleviate pressure on popular sites. As we look ahead, the travel industry is optimistic that these strategic measures will position India as a premier global travel destination, fostering resilience and growth in the sector.”
Rajesh Magow
Co-Founder & Group CEO, MakeMyTrip
“The government’s continued emphasis on infrastructure development is commendable. Enhanced road infrastructure will bolster the travel and tourism sector. We also welcome the initiatives to develop iconic spiritual and cultural sites into world class tourist hotspots.
The decision to reduce the TDS rate on e-commerce operators to 0.1% is a welcome move. Furthermore, the provision of credit for TCS against income tax under ‘Income from Salaries’ is logical and will provide much desired relief to taxpayers who travel internationally.”
Kush Kapoor
CEO , Roseate Hotels & Resorts
“Though Budget 2024 did not provide direct tax rebates for the hospitality sector, it offers significant indirect benefits. The Finance Minister’s announcement of a new centrally-sponsored scheme for skilling 20 lakh youth over the next five years is a vital step. The revision of the Model Skill Loan scheme and the introduction of a new internship program, funded through CSR, will greatly assist in attracting skilled manpower, which our industry desperately needs.
The government’s upskilling initiatives, including the ₹5000 incentive for interns, are commendable and will ease operational expenses. This financial year has already exceeded our budget expectations, marking a historic performance for the industry. We remain hopeful for further support, but these budget measures have been positively received. Enhancing community education and basic skill training will not only double family incomes but also provide a more enthusiastic and skilled workforce, benefiting the hospitality sector immensely.
Vishal Kamat
Executive Director of Kamat Hotels India Limited (KHIL) and Chairman CII Maharashtra State
“The 2024 budget is notably employment-oriented, addressing the needs of various workforce segments, from those starting from scratch to those in mid and lower-level positions. The adjustments in income tax will provide additional income, bridging the gap between employers and employees’ capabilities, which will significantly benefit the workforce.
The emphasis on temple tourism in the budget is commendable. We have witnessed the grassroots impact of such initiatives, benefiting everyone from tea vendors to local grocers when we recently opened our first Ira by Orchid Hotels in Ayodhya. Expanding these efforts to other sacred sites like Kashi Vishwanath and Ayodhya can help uplift entire communities, ensuring that every individual in these holy regions reaps the benefits.
The announcements for MSMEs are also expected to positively impact the overall industry. This budget is a significant step towards fostering employment and economic growth, and we are eager to explore its full implications.”
Abhishek Sinha
Co-founder, GoodDot
The budget is a progressive one with a focus on agriculture, employment & skilling, manufacturing and services, and infrastructure amongst others. The above focus will help improve the standard of living of the masses and also help in faster and inclusive development and the country.
The allocation of 2.66 lakh crore for rural development and rural infrastructure will positively impact the lives of millions of rural population. This will also help in arresting the growth rate of rural-to-urban migration. 2 lakh crore has been allocated to employ over 4.1 crore youth over the next 5 years. This is a much-needed step for India to gain from its demographic dividend.
The abolishment of the Angel Tax on all classes of investors in startups is a welcome step and will incentivise investors to fund the Indian startup ecosystem, which stands to gain significantly in the days ahead. Of course, a special package for the plant-based industry would have been welcome considering the critical advantages the space offers in the field of health, agricultural exports and sustainability.
Overall the focus of the budget on promoting the economy in all sectors with a focus on Agriculture and manufacturing is a welcome step to democratise prosperity in India.
Tushar Parihar
Founder, Kaner Bagh – A Heritage Boutique Hotel
The Union Budget 2024 shows a strong commitment to improving the hospitality and tourism industry. The increased allocation towards infrastructure development, particularly in enhancing connectivity and improving tourist destinations, is a significant step forward. These measures will not only boost domestic and international tourism but will also foster economic growth and create employment opportunities. I am optimistic that these initiatives will accelerate the recovery of the hospitality and tourism industry and support long-term growth.
Pulkit Arora
Director, CYK Hospitalities
Finance Minister Nirmala Sitharaman’s budget is a game changer for the tourism sector. India aims to establish itself as a world-class tourist destination, focusing on places that are of immense spiritual importance, which includes Vishnupath temple at Gaya, and Mahabodhi temple in Bodhgaya, and comprehensive development of the Kashi Vishwanath corridor, and the Brahmkunda of Rajgir and Nalanda, in Bihar.
The Indian Food and Beverage industry rises significantly each year. As India aims to promote world-class tourism experience, this would also benefit the F&B industry. The inflow of tourists – international or domestic would like experience the taste of the local food, which will eventually bring up the demand for local food vendors as well as reputed food brands. This would significantly result in economic and social growth. Also, there will be an increase in local employment opportunities to run successful food businesses and manage tourists in these cities.
Ankur Maheshwary
Founder, Masti Zone
Today’s budget presented by Finance Minister Nirmala Sitharaman introduces a new income tax regime with revised slabs, offering relief to taxpayers and boosting disposable incomes. The capital expenditure outlay is increased by 11.1% to ₹11.11 lakh crore, focusing on infrastructure improvements like converting 40,000 rail bogies to Vande Bharat coaches and expanding key rail corridors. The budget also includes the withdrawal of outstanding direct tax demands up to ₹25,000, benefiting around one crore taxpayers. The exemption limit on capital gains is raised to ₹1.25 lakh per fiscal year, and customs duties on gold, silver, and platinum are reduced. These changes, along with stability in tax rates and increased infrastructure investment, are set to boost the amusement and tourism sectors. However, additional support for digital infrastructure and targeted subsidies could further accelerate growth and innovation. Overall, this budget lays a strong foundation for sustained economic growth.
Jugul Thachery
Founder & CEO, HOGR
“The Union budget introduces promising measures for the startup ecosystem, including the removal of the angel tax, which had earlier posed challenges for emerging businesses. As an early-stage startup founder, this change can be transformative by enabling angel investments, enhancing capacities to innovate, attract talent, and scale our vision, fostering a vibrant startup ecosystem where bold ideas can flourish and contribute to the economy.
The government has taken another impactful step to strengthen data governance through the Digital India Mission, which emphasizes the collection, processing, and management of data leveraging advanced technology tools. This strategy promises to benefit many industries and open new avenues for data management. By leveraging these technologies, the food discovery segment for instance, has already witnessed significant traction, particularly in personalizing experiences using data. We are now confident that we will see greater impact in the near future.Overall, we anticipate that these measures will create a more supportive environment for startups and contribute to a dynamic and thriving business landscape.”
Manish Aggarwal
Director, Bikano, Bikanervala Foods Pvt Ltd
“I am heartened by the Union Budget 2024’s comprehensive approach towards agriculture and rural development. The allocation of INR 1.52 lakh crore for agriculture and allied sectors, alongside the release of 109 high-yielding and climate-resilient crop varieties, marks a significant advancement. This initiative will undoubtedly enhance supply chain efficiencies and reduce agricultural wastage, which are critical for our sector. The plan to initiate 1 crore farmers into natural farming with support for certification and branding is another commendable step. Moreover, the comprehensive review of the agricultural research setup promises to increase productivity and develop climate-resilient varieties, overseen by domain experts to ensure relevance and effectiveness. The substantial provision of INR 2.66 lakh crore for rural development and the Rs 26,000-crore boost to road connectivity projects are also welcome moves. These efforts will greatly improve market access and distribution networks, facilitating better reach for FMCG products in rural areas.
However, we had hoped for more aggressive measures in terms of income tax reforms and increased grants to spur consumer spending and innovation. While the focus on rural infrastructure and agriculture is crucial, additional support through enhanced Employment Linked Incentives (ELI) and Production Linked Incentive (PLI) schemes was necessary to further bolster India’s manufacturing sector. Continued emphasis on these areas would have provided a more holistic boost to the FMCG industry.”
Teja Chekuri
Managing Director Ironhill India
Budget 2024 was quite mixed. While it does provide a promising outlook in terms of tax reforms, infrastructure development, skill development in youth as well as a aim on reducing the overall fiscal deficit, there seems to be considerable uncertainty in implementation while sector-specific considerations, especially for the hospitality sector remain.
While hopeful about the positive impact of some of the reforms, it is imperative that we wait till we have measurable results to assess the impact it has/ will have on the businesses in the near future.
SP Jain
Chairman and Founder, Pride Hotels Group:
“We warmly welcome the budget announced today by Finance Minister Nirmala Sitharaman. The government’s focus on the tourism industry, especially the development initiatives for Jharkhand, Odisha, and the North East, is commendable. The special emphasis on Rajgir and Nalanda will undoubtedly enhance religious and cultural tourism, creating new opportunities for growth and community engagement.
In 2023, India’s tourism sector attracted over 9 million foreign tourists, marking a remarkable growth rate of over 40% year-on-year. The budget’s commitment to enhancing spiritual tourism, particularly through the development of significant sites like Bodh Gaya and the Vishnupada Temple, is a strategic move that promises substantial economic benefits for the regions involved.
However, we had hoped that the Honorable Minister would grant infrastructure status to the hospitality industry. As a highly capital-intensive sector, our industry requires significant investments, and the initial 3-4 years often yield no profits due to high-interest loans from banks. Granting infrastructure status would enable us to access loans at lower interest rates, facilitating the development of more hotels and improving the quality of facilities offered. This is essential to attract both Indian and international tourists and to support the overall development of our industry,” said Mr. SP Jain, Chairman and Founder, Pride Hotels Group.
Manoj Bhat,
MD & CEO, Mahindra Holidays and Resorts India Ltd
“The budget is focused on fiscal prudence, stimulating investments, providing employment, and encouraging growth in the economy. The emphasis on improved connectivity and infrastructure will greatly benefit the domestic tourism sector. The spotlight on developing religious tourism, will further boost the local economy by providing investment and employment.”
Aditya Sanghi
CEO & Co-Founder, Hotelogix-
“The 2024 budget introduces impactful initiatives for the tourism sector, poised to enhance India’s global appeal as a tourist destination significantly. The government’s decision to promote Nalanda and Orissa, along with the focus on religious tourism, reflects a strategic and holistic approach that will drive economic growth and showcase India’s rich heritage.”
Chirag Agrawal
Co-Founder, TravClan
“The Finance Minister’s proposals to develop tourism corridors at Vishnupad Temple and Mahabodhi Temple, along with support for Nalanda as a tourist hub, represent a positive leap towards enhancing India’s tourism infrastructure. These initiatives could stimulate local economies and attract more visitors, promising substantial growth for the travel and tourism sector. At TravClan, we believe that integrating these developments with advanced technology is crucial. Incorporating digital tools for better visitor management and promoting seamless travel solutions could significantly enhance their impact. While the focus on Odisha’s tourism is commendable, a more comprehensive strategy that leverages technology to address the needs of modern travel agents and improve domestic tourism efficiency would be even more beneficial. The economic policy framework for next-generation reforms is a step in the right direction, but practical implementations will be key to fully realising these goals. Overall, the budget shows great promise for the tourism sector, and adopting innovative solutions could amplify benefits and drive sustainable growth in the industry.”
Shivani Sharma
Chefprenuer, Founder – Gourmestan
Globally, the rising cost of food ingredients has strained the F&B industry. The distribution of 109 new high-yielding and climate-resilient varieties of 32 field and cultivation crops to farmers can help to contain this uptick, and the cost benefit can be passed on to consumers. The government has also proposed to initiate one crore farmers into natural farming, supported by certification and branding – this makes organic food more accessible, while being able to buy from certified brands enhances consumer trust. The income tax benefits under the new regime could afford more disposable income for consumers, indirectly translating into improved F&B spends.
Pradeep Bakshi,
MD & CEO, Voltas Limited
“The Union Budget 2024 reflects a forward-thinking approach that will significantly benefit the consumer durables industry and bolster our efforts towards sustainable development. The full exemption of customs duties on 25 critical minerals, including lithium, copper, cobalt, and rare earth elements, is a substantial boost for sectors reliant on these materials, such as high-tech electronics and renewable energy. This policy will not only enhance the availability of these essential resources but also stimulate domestic processing and refining capacities, driving innovation and reducing costs.
Furthermore, the emphasis on energy transition, including the expansion of exempted capital goods for solar panel manufacturing, aligns well with Voltas’ commitment to sustainability. While the non-extension of exemptions for certain solar components reflects a move towards encouraging domestic manufacturing, it also underscores the need for continued investment in domestic production capabilities.
The budget’s focus on substantial investment in manufacturing, presents a promising outlook for the industry. Voltas is optimistic about the positive impact of these policies on the electronics sector and looks forward to contributing to these ambitious goals.”
Mehul Sharma
Founder & CEO, Signum Hotels & Resorts
“The recent budget has left the hospitality industry untouched, despite calls for rationalization of taxes and clarity on regulatory matters. Specifically, the industry had hoped for relief on GST rates and property taxes, but these were not addressed. The increase in the allocation for Mudra loans to ₹3.54 lakh crore is a welcome move for MSMEs, including smaller hotels, which can benefit from easier access to credit. Additionally, while the removal of the angel tax provides some relief to startups, the hospitality sector saw no concrete measures directly targeting its recovery. The government’s focus on job creation and internships, expected to generate 10 million jobs, indirectly benefits the industry. Given that the hospitality sector contributed $194 billion to the economy in 2019 and employed 39 million people, more direct support would have accelerated its recovery.”
Yezdi Irani
Owner at BaaMee Mumbai
“The travel and hospitality industry is disappointed with Budget 2024 as it failed to grant infrastructure status, increase marketing budgets for inbound tourism, and reduce GST rates, leaving key demands unmet and potential growth stunted”
Aloke Bajpai
Chairman, Managing Director & Group CEO, Ixigo
“The government’s policy initiatives to enhance spiritual tourism are a welcome move towards growing domestic tourism as well as making India a global travel destination. We saw a 40-50% increase in demand for spiritual tourism last year, for destinations like Varanasi, Ayodhya, and Tirupati. The government’s PRASAD Scheme has led to a remarkable transformation in Varanasi’s tourism sector, attracting an unprecedented 100 million visitors to Kashi Vishwanath Dham after the corridor project completion.
We expect a similar boost in tourism to Bihar and Odisha with spiritual tourism corridors coming up for Vishnupad Temple and Mahabodhi Temple at Bodh Gaya, along with comprehensive initiatives for Rajgir, Nalanda, and Odisha. We expect this to benefit our large next billion user (NBU) base which predominantly relies on buses and trains to access these spiritual towns, and where our market share continues to improve across modes of transport.”
Rahul Singh
Founder & CEO of THE BEER CAFÉ®
According to Rahul Singh, Founder of THE BEER CAFÉ, “The restaurant sector contributes 2% to India’s GDP, directly employs 8.5 million people, and significantly contributes to various central and state taxes.
On the GST front, we have been proposing two options for GST slabs: a 12% GST rate with Input Tax Credit and the current 5% GST rate without Input Tax Credit, applicable to all restaurants. Allowing ITC will enable restaurants to pass on the benefit to customers.
Implementing a simplified and standardized license and permit policy nationwide will give businesses the necessary impetus to plan expansion across regions, creating employment opportunities and other positive economic effects.
Regrettably, our previous requests and recommendations have not been adequately addressed. We hope that the focus on infrastructure development, skill enhancement, and employment generation at the macro level will eventually benefit our sector.
Puneet Sharma
Founder of Zoop
“The new budget’s emphasis on spiritual tourism will boost Zoop’s online food-in-train service by enhancing customer traction. And the TDS reduction from 1% to 0.1% will benefit Zoop and our food outlets by freeing up working capital, allowing us to serve more domestic and international consumers and deliver superior, convenient services.”
Udit Bagga
CEO of Bagga Link Group and Founder and MD of Zylo and Zylo by Kakapo- The Upscale Restaurants
The government is realising the opportunities in F&B and the tourism sector. The food industry is the heart for the growth of any city because anyone needs 3 meals a day and If someone is traveling they explore new food. So, with this budget, we are looking for more opportunities to grow as tourist hubs and market areas.
One good thing is that the government has changed the tax slabs so that there is more disposable income for salaried people and individuals so there will be a higher spending on consumption. This should benefit our restaurants. We have been waiting a long waiting to get tax inputs on GST, currently, we are on the lowest slab which is good but we don’t get the tax inputs so whatever GST we pay is actually an additional cost to us. I feel that the government will review this soon and give us tax inputs and credits.
The Government has kept us steady and they have a neutral view on the Auto Industry. Many incentive schemes should benefit the industry as a whole.
Satish Bhatia
Co – founder & CEO ,The Malabar Coast
“We are thrilled with the Union Budget’s focus on driving economic growth, consumer spending, and tourism development, which will have a positive impact on the FnB industry. At Malabar Coast Restaurant, we expect increased footfalls, sales, and online ordering growth, driven by initiatives like digital payments, GST rate reduction, and skilling programs. We look forward to expanding our customer base, enhancing customer experience, and showcasing our culinary offerings to a wider audience, particularly in the mid-to-premium dining segment. Overall, we are optimistic about the future prospects for Malabar Coast Restaurant and the industry as a whole.”
Rishi Chona
Director, Prince Cuisines, Cream Centre
The budget announced today brings a fresh wave of optimism for the hospitality and F&B industry. The government’s commitment to improving infrastructure and fostering innovation is a welcome change. At Cream Centre, we believe these initiatives will empower us to refine our offerings and elevate the overall dining experience for our guests. The focus on local sourcing is particularly encouraging, as it aligns with our mission to deliver quality food while supporting local communities.
Alisha Chona Shah
Founder & CEO, Ice Cream Works
As the founder of Ice Cream Works, I am thrilled with the budget announced today. The emphasis on supporting the food and beverage sector through improved infrastructure and digital initiatives is a promising move. These measures will help us innovate and elevate our culinary offerings, ensuring we continue to delight our customers with unique and high-quality ice cream experiences. The budget’s focus on sustainability and local sourcing also aligns perfectly with our commitment to using fresh, locally-sourced ingredients. We are excited about the future and the growth opportunities this budget presents for the entire F&B industry.
Shamitav Jana
CEO & Founder of Sapphero Hotels & Resorts
“The increase in spiritual tourism has been acknowledged, and I am delighted to see the sector receiving much-needed support in this year’s budget. The emphasis on this segment has inspired us to target additional spiritual destinations in the near future”.
Sapphero Resort, situated in the renowned spiritual town of Shirdi, provides a variety of amenities, including banquet halls, a lawn, elegantly furnished rooms, and a restaurant.
He also mentioned, “Once again, the budget has overlooked key demands from the tourism and hospitality sector, such as granting infrastructure status, reducing the GST rate for travel and hospitality, etc. These measures are essential for revitalizing the sector”.
Pushpendra Bansal
COO, Lords Hotels and Resorts
“The Union Budget 2024-2025 has established a robust framework for economic growth in India, with significant positive implications for the hospitality industry. The government’s focus on infrastructure development, digital connectivity, and MSME support will greatly benefit our sector. Increased funding for tourism infrastructure, especially in emerging destinations, aligns with our goal of promoting regional tourism and providing unique guest experiences.
We applaud the initiatives for skill development and job creation, which will help bridge the talent gap in hospitality and ensure a steady influx of skilled professionals. The budget’s emphasis on sustainability and green energy complements our commitment to eco-friendly practices across our properties.
Furthermore, simplifying tax regulations and offering financial incentives to businesses will stimulate investment and growth in the hospitality industry. We are optimistic that these measures will not only boost our sector but also contribute to the nation’s overall economic prosperity.
Lords Hotels and Resorts is dedicated to supporting these government initiatives and playing a key role in advancing India’s tourism and hospitality landscape. We are eager to leverage the opportunities presented by this budget to enhance our services, expand our reach, and deliver exceptional experiences to our guests.”
Rama Mahendru
Country General Manager- India, Intrepid Travel
“India’s rich cultural heritage positions tourism as a cornerstone of economic development. Government efforts to make it a global destination will create jobs across sectors. The focus on promoting spiritual tourism in Bihar and Odisha, with landmarks like the Vishnupath Temple and Mahabodhi Temple, follows the successful Kashi Vishwanath corridor model. These projects aim to enhance the customer experience and generate economic benefits.
Beyond these iconic sites, and comprehensive development plans for the Buddhist sector, Odisha’s scenic beauty, temples, and natural landscapes will also receive a boost. These strategic initiatives target not only attracting foreign travelers but also creating jobs and promoting sustainable growth in the travel industry. Investing in these cultural and historical treasures paves the way for a brighter tourism future for India.”
Harkaran Singh Sethi
General Manager of Radisson Blu Mumbai International Airport
We appreciate the focus of Indian Union Budget 2024 on boosting tourism infrastructure, promoting sustainable practices, and supporting small and medium-sized enterprises. Investments in skill development and digital initiatives are promising for the hospitality industry. We look forward to leveraging these opportunities for our hotel’s growth and development.
Davinder Juj
General Manager Eros Hotel New Delhi
We welcome the provisions presented in Union Budget 2024 by Finance Minister Nirmala Sitharaman, particularly the initiative to transform several iconic locations into world-class tourist destinations. This strategic move aims to attract businesses, support entrepreneurship, and create job opportunities for local communities. We also commend the government’s dedication to positioning India as a top global travel destination through targeted investments and strategic efforts. The development of prominent spiritual and cultural sites, along with the nation’s natural and scenic attractions, will attract both domestic and international tourists, bolstering the growth of the hospitality and travel sector.
Ashley James
GM of Angsana Oasis Spa & Resort
“The Union Budget 2024’s focus on spiritual tourism is a commendable step towards enriching our connection with India’s diverse cultural heritage. The tax exemptions for incomes below ₹7.5 lakhs and the robust support for startups and youth training are heartening developments, promoting economic inclusivity and job creation. However, the hospitality sector still has not been given the industry status that it deserves.
While the budget drives women and youth empowerment, integral sectors like hospitality need enhanced support to truly achieve a ‘Viksit Bharat’. We remain optimistic that future budgets will address these gaps.”
Santanu Malla
Unit Finance Controller, Sayaji Pune
“As Sayaji Hotels continues to innovate in hospitality, we view the Union Budget 2024 positively for its emphasis on infrastructure and tourism. These investments will undoubtedly elevate guest experiences and drive the industry towards new heights of excellence.”
Clemente Ferreira
Director Of Finance, Radisson Blu, Hinjewadi, Pune
India has witnessed a remarkable development in the tourism and hospitality sectors in the post-COVID-19 era. According to the Economic Survey 2023-24, India earned foreign exchange receipts worth ₹2.3 lakh crore through tourism, ranking 39th in the World Economic Forum’s Travel and Tourism Development Index (TTDI) 2024. However as an Hotelier i would like have expressed disappointment over the lack of sector-specific incentives in the budget. Hospitality sector should have been recognized for its “Potential to creating significant amount of employment, investments, and foreign exchange earnings for the country” by Not covering the overall tourism infrastructure is a missed opportunity.
K M Bansal
Director of Finance, Sheraton Grand Palace Indore
The Sheraton Grand Palace Indore appreciates the 2024 Union Budget’s emphasis on infrastructure and tourism. These initiatives are expected to invigorate the hospitality sector, allowing hotels to provide superior guest experiences and drive economic growth
“The hospitality sector was hopeful for a more robust budget that could further propel our industry’s growth. While the emphasis on job creation through skill development is a positive step towards creating employment opportunities, we were looking forward to the recognition of our sector as an industry, given its significant contribution to the nation’s GDP. Additionally, a rationalization of GST for room rate parity would have provided much-needed stability. We remain optimistic that the government will address these key concerns in the future and create an even more conducive environment for the hospitality sector to flourish.”
Prakash Shankar, General Manager at Lyfe Hotels, Bhubaneswar
“Reflecting on the recently announced Union Budget, we would like to commend the Government and our Honourable Finance Minister Smt. Nirmala Sitharaman, for looking to establish economic measures that will drive India towards a better economic future. The EPF support for new hires will go a long way in significantly bolstering levels of employment in the country. This is crucial in developing a stable, secure and robust workforce which will be beneficial to all industries including the food services sector. The reduction in income tax slabs is a commendable move, empowering individuals with greater savings and disposable income, thus driving higher consumption levels, an essential catalyst for sustained economic momentum.”
He further added, “The emphasis on boosting tourism is a strategic step towards revitalizing the sector, promising a resurgence in hospitality industries. Also, support given to the MSMEs in the form of Mudra loan limit increase needs to be applauded. It is unfortunate that MSMEs in the food service sector will miss out due to the fact that the Food Services sector has not been recognised as an industry yet. The recent Economic Survey has laid focus on the creation of 8 million jobs each year till 2036. The food services sector is ideally positioned to drive this goal since it employs people with all education and skill levels. The current direct employment by the industry of 8.5 million people is slated to grow by more than 20% to 10.5 million in the next four years. However, lack of GST Input Tax Credit for the industry is slowing down the growth and job opportunities of this otherwise vibrant sector.”
Kabir Suri, President, National Restaurant Association of India
Continued focus on infrastructural development, fiscal prudence, and consolidation. Tourism continues to be accepted as an engine of growth for the economy. Emphasis on spiritual tourism, however, no policy changes to expedite growth.
Tourism and hospitality play a crucial role in the growth of the Indian economy. The continued focus on government spending on infrastructure development augurs well for the sector. Improved infrastructure would translate into better connectivity, which will be beneficial to the promotion of tourism. The development of the eastern region, temple corridors in Gaya and Bodhgaya, and identification of Nalanda as a key tourism site continue to demonstrate the government’s intent to utilize the potential of tourism. Regrettably, however there has been no policy announcement to facilitate the development of hotels and promotion of inbound tourism. The announcement of GST simplification, and comprehensive review of the Income Tax Act provides some hope for the sector that has been seeking rationalization of taxes. The benefits to individuals on taxation will augment the spending power. The focus on skilling and incentivizing employers for creating jobs are other positives that will benefit all sectors.
Although not directly linked to this budget, the industry would continue its ask for granting of infrastructure status for the hospitality sector and industry-related benefits by all state governments.
K.B. Kachru, Chairman Emeritus and Principal Advisor, Radisson Hotel Group South Asia & President – HAI
“It is highly encouraging to see that the Hon’ble Finance Minister has underscored the vital role of tourism in driving our economy and boosting employment and GDP. The enhanced focus on developing tourism corridors at Vishnupad Temple and Mahabodhi Temple, modeled after the successful Kashi Vishwanath Temple initiative, will significantly contribute to tourism growth during the Amrit Kal. Additionally, the government’s support for transforming Nalanda in Bihar into a major tourist destination is a noteworthy step forward. Finance Minister Sitharaman’s announcement of an economic policy framework aimed at ushering in next-generation reforms to drive economic growth further underscores this commitment. The Union Budget’s robust allocation of Rs 11.11 lakh crore for capital expenditure also highlights a strong commitment to infrastructure development.
However, to fully harness the potential of the hospitality sector and further enhance tourism, it was crucial for the government to consider more lenient tax policies and allocate a substantial budget to elevate hotel standards. We are optimistic that future support from the Government will include granting infrastructure status to the hospitality and tourism sectors, which will help us achieve long-awaited progress and drive sustained growth”.
Animesh Kumar, Head of Commercials at ibis & ibis Styles India
“The Hon’ble Finance Minister presented an inclusive budget with a keen eye on enhancing employment, upliftment of the rural economy and key infrastructure initiatives. At the same time, infrastructure status to tourism and hospitality is a missed opportunity. We were hopeful, as this would have enhanced investments in the industry, leading to greater employment generation and adding to the exchequer’s forex earnings.”
Sanjay Sethi, CEO and Managing Director, Chalet Hotels Limited
“We appreciate the government’s decisive focus on tourism and hospitality in the recent budget announcement. The prioritization of developing iconic cultural and spiritual sites, alongside the promotion of cruise and beach tourism, reflects a forward-thinking approach aimed at enhancing India’s allure as a global tourist destination. These strategic initiatives hold great promise for the hospitality industry.
By attracting both domestic and international visitors through targeted investments, the new budget allotment shall not only bolster tourism revenues but also catalyse local economies, generating significant employment opportunities. We commend the government’s commitment to highlighting our natural and scenic beauty, which resonates deeply with our industry’s mission to provide exceptional guest experiences. This budget reinforces our optimism for the sector’s growth trajectory and underscores the pivotal role of hospitality in advancing India’s economic agenda.
We look forward to work in tandem with the government to leverage these opportunities for sustainable growth and mutual prosperity within the hospitality sector. “
Sameer Mehra, Chief Commercial Officer, The MRS Group of Hotels
“This budget is entrepreneur-friendly with a focus on capital- both human capital and financial capital. Removal of the Angel tax will help in getting more investment. The thrust on skilling will help get more skilled Human Resources.”
Mansi Baranwal- Chief Executive Officer at Troovy Food
