The Union Budget 2023-24| Hotel Associations, Hoteliers and Industry Experts Reaction to FM Sitharaman’s announcements
The Union Budget 2023-24 presented by Finance Minister (Nirmala Sitharaman) is a goal Oriented to overcome economic challenges. Let's see the reactions and views from Industry Experts. Therefore, here are reactions From Hotel Associations
The Union Budget 2023-24 presented by Finance Minister (Nirmala Sitharaman) is a goal Oriented to overcome economic challenges. Let’s see the reactions and views from Industry Experts. Therefore, here are reactions From Hotel Associations to Hoteliers inputs.
Mr Pradeep Shetty,
President, Hotel and Restaurant Association of Western India (HRAWI)
“The fact that Tourism got attention in the Union Budget is a big welcome. The Hon’ble FM recognized the country’s potential for domestic as well as foreign tourists and the huge opportunities the sector holds for jobs and entrepreneurship. The Hon’ble FM stressed on promoting tourism on mission mode, with the active participation of States, the convergence of Government programmes and public-private partnerships. This is especially good news for regional tourism and hospitality. Developing new airports, heliports, water aerodromes and advanced landing grounds to improve regional connectivity will unlock the vast potential for growth in the Western region of India. An integrated and innovative approach through challenge mode will be a game changer for the destinations in the Western region selected through this route. The Unity Mall initiative too is a great step in the right direction that encourages States to promote regional tourism and sale of their own ODOPs (one district, one product), GI products and other handicraft products. The Credit guarantee scheme for MSMEs with an infusion of Rs.9000 Cr into the corpus is expected to help small and medium-scale hotels and restaurants.”
Mr Jaison Chacko,
Secretary General, Federation of Hotel & Restaurant Associations of India (FHRAI)
“It’s encouraging to note that the Union Budget has recognized the immense potential of the Tourism sector in the country to be tapped. The announcement of the Hon’ble Minister that promotion of tourism will be taken up on mission mode, with active participation of States, convergence of Government programmes and public-private partnerships is an extremely crucial announcement and the industry believes that this will benefit the sector in the long term. The Unity Mall, other tourism promotion initiatives through States and the development of 50 tourism destinations as a whole package will help in the growth of domestic as well as international tourism. Also, the announcement of additional airports, heliports, water aerodromes and advance landing grounds to improve regional connectivity is a great step. Like the Golden triangle, regional connectivity will give a major boost to the dedicated tourism corridors. This will help promote local tourism whilst giving a boost to investment in hospitality projects in the region. The industry is expecting appropriate allocation to be made to hospitality as per sector-specific planning envisaged by the Ministry of Tourism in conjunction with the industry. The enhancement of ease of doing business by reducing more than 39,000 compliances will also help to create a positive business environment. Lastly, the revamped Credit guarantee scheme for MSMEs with an infusion of Rs.9000 Cr into the corpus is expected to help small and medium-scale hotels and restaurants. The Hospitality industry’s long pending requests for Infrastructure status, uniform GST, and placing Tourism on the concurrent list of the constitution have not been met but the new announcements are positive signs of the Government’s intent about working on them in the near future,”
Director, Brigade Hospitality
“A special mention on Tourism, by the Hon’ble FM, has been a most welcome gesture. An acknowledgment that Tourism is indeed critical to our economic growth, is encouraging and bodes well for the industry. We welcome the measures announced to further promote tourism and to identify 50 projects for last mile connectivity improvement. The addition of 50 airports, heliports and waterdromes should also benefit the sector. Overall, a satisfactory start but more such initiatives are expected in the days ahead.”
Co-founder & CEO, Hotelogix
“Guest experience is the fulcrum for tourism in India as we as a nation are gifted with many naturally beautiful landscapes, heritage destinations, medical tourism, and wellness tourism, like people visiting for yoga, etc. This budget’s focus on an app to enhance tourists’ experience is a welcome step. It will help us track the guest experience we are delivering and enable us to boost the same as we would know the areas to improve.The tourism and hotel sector will get further push with a focus on increasing international inbound tourism. It offers an opportunity for hotels in India to see much better ADRs as those international guests’ average spending is relatively higher. It will also be beneficial for the country’s economy.”
Founder & Group CEO, OYO
“The budget presented by Hon’ble Finance Minister Nirmala Sitharaman offers a roadmap for the holistic development of the nation, as we enter ‘Amrit Kaal’. It sets India up as the Startup Nation for the decade.
Increment in the capital investment by 33% in infrastructure and Urban Infrastructure Development Fund (UIDF) will have a multiplier effect. Announcing a capital outlay of INR 2.40 lakh crore for the railway sector, addition of 50 airports, heliports, water aerodromes, and advanced landing grounds will further provide impetus to overall infrastructure, leading to improved connectivity across the country and enhancing domestic travel and tourism.
It is heartening to see the extra emphasis given to tourism this year. The FM has identified tourism as one of the key sectors, with huge potential to generate employment for the youth, and reiterated government’s commitment to promote tourism on ‘mission mode’.
We welcome the move to develop 50 cities across India as a complete package for domestic and international tourism, and developing an app to ensure all the key metrics related to travel and tourism for the said cities are regularly updated. We also laud the move to incentivise states to set up ‘Unity Malls’ in their most popular tourism destination for promotion of GI, ‘Made in India’ products and handicrafts. Integrated development of theme-based tourism circuit under the ‘Swadesh Darshan Scheme’, with special focus on improving infrastructure and amenities in border villages will provide a much-needed boost to rural and agriculture tourism. This will empower the farmers in building and setting up homestays that provide an additional source of income for them while also providing an authentic Indian experience to the travellers. OYO’s homestay projects in Ektanagar and J&K, in collaboration with respective state governments, have already yielded great results and helped boost tourism and overall economy in these villages.
Another commendable move is the sector specific upskilling and development to achieve the objectives of ‘Dekho Apna Desh’ initiative launched by PM Modi last year. This will encourage the youth to take up a career in tourism and hospitality, and further strengthen the growth of the sector.
In recent years, the start-up ecosystem in India has expanded rapidly to emerge as a major driver of economic growth. The finance minister’s proposal to extend the date of incorporation for income tax benefits to start-ups by another year is bound to further that progress and promote new entrepreneurial talent.
The decision to provide the benefit of carry forward of losses on change of shareholding of start-ups from seven years of incorporation to 10 years is another welcome move.”
CEO & Founder, Noesis Capital Advisors
The Union budget has shown positive signs for the Hospitality, Travel, and Tourism industries, the Union Finance Minister Nirmala Sitharaman has encouraged the states to set up a ‘Unity Mall’ in the state capital or at an attractive tourist destination in the state for the promotion and sale of ‘One District, One product’ (ODOP) and Geographical Indication (GI) products along with other handicrafts.
While the Minister announced 50 tourist destinations will be selected and developed as a whole package for domestic and international tourism, the overall development with this vision is an impetus to the sector. The FM Sitharaman stated, “Dekho Apna Desh’ initiative was launched by the Prime Minister to the middle class to prefer domestic tourism over international tourism whereas ‘Swadesh Darshan Scheme’ was launched for integrated development of theme-based tourist circuits”. Moving towards, emboldening the active participation of states, convergence of government programmes and public-private partnerships. The future seems bright and an exciting one with 50 additional airports, and helipads to be revived to increase connectivity with the budget of 3,114 crores to the union civil aviation ministry. This will further increase the passenger movement and boast the hotel room inventory across the region which will increase employment opportunities and parallelly uplift the community, promoting sustainable tourism.
Joint Managing Director, Sincere Developers, which owns Taj Hotel & Convention Centre Agra
The Union Budget 2023-2024 presented by the finance minister (Nirmala Sitharaman) highlighted that the Indian economy is on a growth trajectory in spite of the global economic challenges. In her Budget speech, the FM emphasized that the country offers “immense attraction” for both domestic and international tourists. With the government announcing that states will be encouraged to set up a “Unity Mall” in the capital city or most popular tourist destination for the promotion of ‘One District, one product’ theme, such initiatives will help to unleash the potential vested in the tourism sector. I also expect that the change in tax regime announced in the Union Budget will result in more disposable income in the hands of middle-class consumers – which I expect ultimately will spur consumption in activities like travel. Regional connectivity will see a boost with the plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds.
Founder & MD, Cygnett Hotels and Resorts
The Union Budget 2023-2024 presented by the Finance Minister (Nirmala Sitharaman) is a growth-oriented one aimed to help India weather the current global economic challenges. With the FM announcing plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds, it will boost regional connectivity. Moreover, the announcement to develop 50 destinations for domestic and international tourists will also help to draw attention to the country’s tourism and hospitality sectors. The Finance Minister said that these tourist destinations will be selected through challenge mode. The impetus on Dekho Apna Desh will provide a further boost to the growth of domestic tourism in the country. The FM also highlighted that states will be encouraged to set up a “Unity Mall” in the capital city or most popular tourist destination for the promotion of the ‘One District, One product’ theme. Such initiatives will also help unleash the potential taped in the tourism sector.
Co-Founder & Director, Atmantan Wellness Centre
“While mostly all segments of hospitality have bounced back in India showing tremendous resilience on part of the hospitality workforce & stakeholders, the following will help:
Firstly hotel projects have long term gestation. Especially since the preferences of the travelers are changing and newer experiences are being curated, having longer term funding of 15-20 years will help in giving the promoters some cushion in being able to position and promote their unique concepts. When the duration of borrowing is short, no one wants to take a risk and everyone plays with the plain vanilla offerings – business & leisure. Whereas travel is multi dimensional including wellness, adventure, nature, wildlife, sports, spiritual etc. With the cultural diversity of India, so many aspects can be promoted if benefits of industry status are extended. States like Maharashtra have taken the lead of granting industry status to the hospitality industry, but this is limited only to electricity duty, property tax benefits and the banking community doesn’t recognise this for long tenure lower cost borrowings.
Secondly, the international travel sentiment remains poor for the next 9-12 months. This is moreover due to the Geo political stress in the west. Hence, there is an urgent requirement for the government to extend all the EPCG licenses for another 5 years to help tide over the situation.
Lastly, we expect lowering the GST to 12%, at least for a period 3-5 years as a gesture to overcome the pandemic stress and the airport infrastructure needs to be upgraded, both for domestic and international travelers as people don’t like the stress at the airports when they want to relax on a holiday.
Specifically with regard to wellness tourism, the government should incentivise individuals who are imbibing preventive health care & natural healing into their daily lives. These individuals who are in good health by and large don’t add to the already stressed medical infrastructure of the country. Hence, when these individuals travel to NABH accredited wellness centers or subscribe to online health plans, they should be rewarded with lower insurance premiums, LTA benefits etc.”
Dr. Vikram Kamat
Chairman and Founder, The Vitskamats Group
Overall the budget was quite balanced, ensuring all the income and expenses are factored. But like every year, inspite of hospitality industry being generating employment from grassroots level for all skilled, unskilled and semi-skilled people, not even basic requests have been met. No disappointment as there was no expectations in the first place.
Chairman and Managing Director, Pride Hotels Limited
The Honorable Finance Minister Smt. Nirmala Sitharaman has announced the development of tourist places jointly by public and private partnerships. This will give a much-needed boost to the domestic tourism segment. The budget specifies that 50 tourist destinations will be selected and developed as a whole package for domestic and international tourism. We welcome this announcement. For domestic tourism “Dekho Apna Desh” has already been promoted very widely now similarly international tourism too will be revived with these initiates. The tourist infrastructure will also be provided on the border and in North East India which will be highly beneficial for the inflow of tourists. The industry can harness the direct and multiplier effects of tourism in employment generation to the youth of India as the sector creates direct and indirect job opportunities. We believe these implementations will play a pivotal role in overall economic development. This is a good budget for the hospitality and tourism sectors.
CEO, Roseate Hotels & Resorts
“Honourable FMs push for the tourism sector is a great booster for the Indian hospitality industry. While post pandemic there has been a significant increase in domestic tourism’s contribution to luxury hotels, ‘Dekho Apna Desh’ campaign will further add to the momentum. The government’s focus on tourism promotion is evident in their opening up opportunities for joint participation of the states and private players in Government programs via the PPP mode. This will be a major driver for growth to tourism across India. Further, the development of 50 new airports and 50 destinations through challenge mode to develop a consolidated package for both domestic and international tourism also augurs well for India’s hospitality industry that has long grappled with infrastructure bottlenecks.”
Executive Director, Rhythm Hospitality
“The investments in road & airport infrastructure through all the previous budgets and this current one are key in unlocking the tourism potential of our beautiful nation. We also welcome the initiative by the Government to develop 50 tourist destinations. Hotel guests, both domestic and international, are eagerly awaiting the discovery of these new destinations and along with it the natural beauty, food & culture of new parts of India..”
COO, of Lords Hotels and Resorts
Finance minister decision to take tourism on a mission mode in Budget 2023 with active participation of states, convergence of government programs and public-private partnerships is a great move.
An app which will provide a real time information of tourist destinations in addition to aspects such as physical connectivity, virtual connectivity, tourist guides, food streets and tourists’ security will surely enhance tourist experience.
50 destinations to be developed as a complete tourist package will promote domestic as well as foreign tourism.
Managing Director, Apeejay Surrendra Park Hotels Limited and Co-Chairman of the CII National Committee on Tourism & Hospitality
The budget demonstrates India’s rising global profile and sets the trajectory to be the third largest economy by the end of the decade.
The government has remained focused on the path of fiscal prudence reducing the fiscal deficit from 6.4% in FY 22/23 to 5.9% in FY 23/24. Strong focus on infrastructure development with outlay being increased from 7.3 lakh crores to 10 lakh crores and at 3.3% of the GDP will drive growth and generate employment.
On tourism, the budget fails to meet industry expectation on being granted infrastructure status and rationalisation of taxes. Increase in tax collection at source for overseas tour packages from 5% to 20% is also a negative and will hit the tour and travel industry especially since the industry has just reconnected from the pandemic.
However, setting up 50 new airports and heliports and 50 new tourist destinations to drive domestic and international traffic is a welcome step.
Over all the budget is inclusive and will inspire investors, tax payers, farmers and the common peopl
Managing Partner, Treehouse Hotels Club & Spa.
“Part of the increased disposable income in the hands of the taxpayer will find its way into the tourism sector, which will further boost domestic tourism. The infrastructure development and investment in creating tourism circuits will have a long term positive impact on the industry. The infrastructure status for the tourism sector would have been the perfect combination for bolstering the sector but unfortunately it was overlooked even this time”.
Country General Manager – India | Ascott International Management India Pvt Ltd
“The announcement made in Union Budget 2023 of increased allocation of funds towards the development of tourist infrastructure and promotion of tourism is expected to boost the hospitality sector’s growth while attracting more tourists to the country. The Ascott Limited, a leading hospitality company in the serviced residences space, welcomes the government’s focus on encouraging tourism and infrastructure development. We are confident that there will be rise in demand in the apartment hotel space and will create new opportunities for the industry. The budget has provided a positive outlook for the hospitality industry, and we are eager to leverage this momentum to drive further growth in the coming year.” – Hoshang Garivala, Country General Manager – India | Ascott International Management India Pvt Ltd.
Chairman and managing director, THE FERN HOTELS & RESORTS
It was heart-warming to hear about the mention of the tourism industry and the government’s initiative to promote India among fellow Indians during the presentation of the union budget by the finance minister.
The mention of “ Dekho Apna Desh” and urging Indians to discover our beautiful country is a step in the right direction. The number of Indians visiting foreign countries is growing very rapidly. If a small percentage of them start holidaying in India, it is going to provide a big fillip to the domestic tourism and hospitality industry. The government has to ensure that the infrastructure provided at those places is good. Besides, all these places have to be safe as well. Especially for the solo woman traveler. Only then the private players will invest in hotels and other facilities. Building a hotel costs a lot of money, once a hotelier is confident about the returns, only then will he put in his money.
The development of 50 tourism destinations for domestic and international tourists reflects the government’s recognition of the fact that the tourism industry is vital for the overall development and growth of the country. Along with that, the big infrastructure projects, especially the building of 50 airports is surely going to help in growing tourism in a huge way in the long run. However, these are going to bear the fruits in the long run. These big infrastructure proposals take years to get completed. Look at the Navi Mumbai airport project, we have been hearing about it for decades and it is still going to take a few more years to get completed.
There is not much in the budget which will help the industry in the near future. There were a few demands made by the industry through our associations. One of the main demands was the rationalization of the GST structure. That has not been done. Similarly, there were hopes about providing interest relief, but that has also not happened.
Overall I can say that the government has made the announcements, now the bureaucracy has to work in the right direction to implement those schemes. As mentioned above, time is of essence and these big-ticket projects need to be executed well. It remains to be seen how these projects are going to be implemented.
Managing Director – Sayaji Hotels
Budget 2023 has been revolutionary in its efforts to give relief to every sector. Opportunity for job creation and entrepreneurship in the tourism sector is the need of the hour. Developing a package for domestic and international tourism out of 50 tourist destinations is a great start.
Revival of fifty additional airports, water aerodromes, advanced landing grounds and heliports will help in enhancing regional air connectivity in the country.
Along with these measures GST reduction was also expected which unfortunately was missed.
CEO, Khyathi Hospitality
The 2023 Financial budget has incited a mixed reaction for all of us. Following the pandemic downfall, it has been a rough couple of years for the hospitality industry at large. Several sectors of the travel and tourism industry are slowly recovering, yet to have reached their previous pinnacle. As the marketeer for hospitality and lifestyle brands, Khyathi is not directly impressed upon by the budgetary changes. But at the same time, each of us are at large a part of the greater hospitality industry which relies heavily domestic an d international travels. Thereafter the budgetary implementations on outbound travel, which is bound to impress upon the country’s international tourism, in a way affects marketing agencies such as ourselves. It is owing to the fact that we need to re-profile and re-work on the marketing strategies for our patrons, keeping in mind the recent budgetary developments. Thereafter it is safe to say that the Financial Budget of the country in 2023, while it gives many reasons to celebrate, does create a more opportunistic and challenging scape for the industry pioneers who continues to strive to reach for the best.
General Manager, JW Marriott Mussoorie Walnut Grove Resort & Spa
After nearly three long, rocky years, the winds of change have started to blow for the travel and tourism industry. In 2022, there was a significant upswing in the sector, and the data are encouraging. The year is crucial for India’s tourism and hotel industry because we want to see robust growth following the pandemic-caused downturn. Despite the difficulties and the general inflation, travel is gradually returning to pre-pandemic levels. Planning ahead would appear to be a frequent theme as travellers would be making their way to every part of the world, even if it occasionally requires splurging. After Finance Minister Nirmala Sitharaman declared a special focus on the tourism sector on Wednesday, shares of companies involved in the travel and hotel industries have also witnessed a surge. The budget also includes development of 50 tourist spots that will be chosen through a challenge method and offered as a complete package for both domestic and foreign tourists, which will undoubtedly revolutionize the travel sector for the better. I think that there is a lot of untapped potential in the tourism industry, and that young people in particular have a lot of employment and entrepreneurial options in the travel and tourism sector. Overall, I can safely state that Budget 2023 has brought a little sigh of relief for all of us although the expectations were many.’
Cluster General Manager, Mosaic Hotels
“We welcome the announcement made by FM to develop 50 tourist destinations in the country as a whole package to encourage both domestic and international tourism. As this step includes the development of destination in terms of transport connectivity, virtual connectivity, tourist guides, tourist security and high standard food joints, it will definitely boost the employment opportunities generated collectively by hotels, F&B players, tour and travel agencies, OTA etc.
Also, the government’s plan to launch the ‘Dekho Apna Desh’ initiative will motivate people, especially young tourists to travel within India. The initiative will further strengthen the hospitality, travel and tourism sector to rebound rapidly and compensate for the losses that occur due to the pandemic.
Overall, Union Budget 2023 was balanced and I expect the direct tax recommendations will empower the middle class to spend the money on lifestyle and travel.”
Sharad K Upadhyay
General Manager, Crowne Plaza Greater Noida
” The union budget 2023 has sent ripples of positive energy across the entire hospitality industry. The government’s increased focus on tourism promotion will act as a booster shot for the industry. The increased capital expenditure will help build better roads and railways and enhance the accessibility to various existing tourism destinations and help develop new ones. The hospitality industry in the country has long suffered from the lack of skilled professionals. The government’s focus on skill development in the tourism and hospitality industries will have long-term benefits for the sector. The hotel industry, being an integral part of the hospitality industry will be one of the primary beneficiaries of it.
The government’s continuous focus on the healthcare industry will boost medical tourism in the country and the hotel industry will be one of the main beneficiaries of this.”
General Manager, Holiday Inn Bengaluru Racecourse
The initiative ‘Dekho Apna desh’ is commendable as it will give a push to Indians to explore different cities and see their own country like never before. To boost the inflow of tourism from domestic and international tourists, some of the steps taken by the government are impressive. However, the hospitality industry has been requesting for long term loans which has not met. The development of 50 new destinations will make India more attractive to international tourists as their options will increase. The industry is expecting appropriate allocation to be made to hospitality as per sector-specific planning. The travel & tourism industry supports one in 10 jobs and provides livelihoods for a significant number of people, therefore the Government’s support on prioritizing tourism will have a positive impact.
General Manager at The St. Regis Goa Resort
“The Union Budget 2023-2024 seems encouraging with the introduction of new initiatives like ‘Dekho Apna Desh’ which promote domestic travel. Goa being a preferred destination for weekend getaways and annual holidays will definitely benefit through this. The development of 50 new destinations, will make travel more experiential and will make India more attractive to international tourists as their options will increase. International tourists will now get to explore more destinations in India and this could help Goa as being an option at the end of their itinerary. This could even create repeat visits amongst international tourists who have visited the country before but missed out on the new destinations. It is also important to continue to improve the travel infrastructure to attract tourists from new source markets too and thus I think our continued focus on development of roads, airports and tourist facilities at popular destinations should help in boosting tourism for Goa and our country”
Chairman and Managing Director, Royal Orchid & Regenta Hotels
In my view, the budget is very promising for our sector this year. Tourism has in some way been given the spotlight that was required for a long time. The focus on ‘Bharat Dekho’ is commendable as this is an initiative that will push Indians to explore India and see their own country like never before.
However, there are several areas, especially in the hospitality industry that have been missed. There are no loans for long terms as well as no industry status which has been our request for years.
Though tourism has been recognised as one of the drivers for the economy, yet, the suggested 50 additional airports will certainly help the industry but will take another 3-5 years to be built. The same can be said for the 50 tourist destinations that will be selected. This will take a very long-time , maybe even five to 10 years before completion.
In my view, more prominence has to be given to our industry. There should be more focus on the connectivity of airports, especially from the city centres by road or metro. Tourist places should basically have clean and hygienic toilets, which should be permitted especially where the archaeological departments do not permit it. Finally, instead of food stalls at tourist destinations, there should be proper food courts and parking facilities.
Director of Finance, Sheraton Grand Chennai Resort & Spa!
In the Budget 2023 announced by Honorable Finance Minister Mrs. Nirmala Sitharaman, following are the areas related to the Hospitality industry:
1. Finance Minister has mentioned in her speech that “Promotion of tourism will be taken up on mission mode with the active participation of states’ Convergence of government programs and Public-Private Partnership” – This indeed boosts the tourism, where hotels play major role in accommodating and entertaining guests and helps in uplift of occupancy and revenue growth of all the focused hotels in major tourism cities.
2. Finance Minister also mentioned that “The country offers immense attraction for domestic as well as foreign tourists. There is a large potential to be tapped in tourism. The sector holds huge opportunities for jobs and entrepreneurship for youth in particular” – This indeed creates lot of open positions of job opportunities for youth pursuing in similar careers like Hotel Management courses.
3. Finance Minister also mentioned that 50 new destinations will be made and it will make India more attractive to international tourists through focusing on application naming “Dekho Apna Desh” as their options will increase – This indeed boosts travelers’ experiences and enthusiasm to travel to countries like India which is very rich in its heritage after Covid pandemic.
4. Finance Minister has proposed new tax slabs in the new tax regime in direct taxation which includes No tax for the citizens earning Rs.7,00,000/- & below – This indeed helps most of the associates to save their taxes working in the hotel industry as most usual package offered for work in hotel industry lies between Rs. 2,50,000 – 7,00,000.
Director of Rubystone
The new Budget for 2023-24 has brought a boom to the Travel and Hospitality Industry three years after the pandemic. The industry is expected to focus on foreign travellers to splurge in exploring the world. The industry needs to focus on sustainable tourism and domestic hospitality to promote eco-tourism opportunities.
The industry has suffered a lot during the pandemic, it’s time to rebound with new strategies. This time, the travel industry will promote domestic tourism where tourist guides will reassure their security and aid Swadesh-Darshan. Industries also expect the centre to give rebates to hotels across the country in tax.
The budget ignitions the work of the government and the industry. The hotels, restaurants and resorts are built in an eco-tourism manner to give traditional and sustainable development to the country and save mother earth.
GM, Sheraton Grand Palace Indore
The Budget has been gravely disappointing.
Tourism & Hospitality Industry Disappointed With Union Budget 2023-24, Hospitality and related services are yet to regain their pre-pandemic level of business.
The extension of ECLGS (Emergency Credit Line Guarantee Scheme) with additional allocation to the crawling hospitality sector and provisioning an outlay of Rs 2 lakh crore through CGTMSE (Credit Guarantee Fund for Micro and Small Enterprises) are the only relief measures. However, this is just a drop in the ocean for a sector that has been severely battered. Given the massive damages that decimated the entire sector’s ecosystem, these measures are not adequate to bridge the losses and offer impetus to the hospitality and tourism industry.
Major disappointment as no changes in GST rates.
Although during the Budget speech the Finance Minister announces to take promotion of the Tourism sector in mission mode.
COO, Bellona Hospitality
“The F&B industry is crucial from a strategic standpoint because it contributes to almost 3% of India’s GDP while providing work opportunities to more than 7.5milliom people. We welcome the new budget and trust the government to provide the same support they gave us to bounce-back after the pandemic”,
GM, The Den Hotel, Bangalore
The Budget for 2023 has a broader perception and is more growth oriented and less populist, which is greater for the economy and the nation. The finance minister’s initiative to develop 50 new destinations for tourism is a welcome step forward for a corona battered hospitality. Though our expectation was the announcement of the new tourism policy and a kinder view towards import-export duties and benefits, however that is not visible in the broader print. We look forward to the growth oriented budget as a stimulant for the growth of hospitality.
Founder, Kaner Bagh
The Finance Minister’s announcement to promote the Tourism sector in mission mode is the most welcoming news in this year’s Budget 2023-2024. The hospitality and tourism industry which plays a major role in the GDP of the country was waiting for favorable policies and announcements in this budget after facing disappointment from the Centre in the previous budget. The allocation of huge capital expenditure and the innovative plan for the growth of the tourism and hospitality sector also holds huge opportunities for jobs and entrepreneurship for youths.
The industry was severely hit by the pandemic and faced a drastic drop in sales due to the lockdown and covid related curbs, for the last two years. But this year, however, I am looking forward to a fruitful and successful year as the business has returned in our favor.
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