The Union Budget 2024, announced by the Finance Minister or FM, Nirmala Sitharaman, has many major changes. The FM highlighted nine key areas of focus. They are productivity and resilience in agriculture, employment & skilling, inclusive human resource development & social justice, manufacture & service, urban development, energy security, infrastructure, innovation, research & development, and next-generation reforms. From MakeMyTrip to CYK Hospitalities, here are the reactions of major travel and food industry players on the Budget 2024.
Union Budget 2024: Reactions Of Industry Players
1. Thomas Cook (India) Limited
Mr. Madhavan Menon, Executive Chairman says, “This year’s Union Budget has opened new doors to development, specifically for domestic and inbound tourism. With the focus on special development funds/ programs for the socio-cultural-religious potential of iconic temple corridors including Gaya’s Vishnupad & Mahabodhi temples into world-class pilgrim and tourist destinations (to be modelled on the success of the Kashi Vishwanath temple corridor), the Government of India’s intent is encouraging.”
Further, he added, “The discontinued SEIS scheme should have been reinstated, as this is meaningful towards encouraging inbound tourism, foreign exchange receipts and a force multiplier for employment generation.
We are disappointed to note that key pillars in India’s Tourism agenda – Aviation & Hospitality were not mentioned as part of the Budget and both standardisation of GST rates on hotel tariffs to 12% and the reduction of ATF remained unaddressed.”
2. Eco Hotels & Resorts Limited
Mr. Akash Bhatia, CEO of Eco Hotels & Resorts Limited says, “The recent budget plan highlights a game-changing vision for India’s tourism industry. Building up the Vishnupad and Mahabodhi Temple corridors, along with the extensive development of Rajgir and re-establishing the Nalanda University, will elevate India’s cultural and historical charm. We’re delighted about the assistance for making Odisha an ultimate top-spot for tourists. As one of the key players in the hotel business, it is our aim to ensure that our services will be exceptional enough to match these improvements and give guests amazing experiences that draw attention to India’s deep roots and lively culture.”
3. Patel Integrated Logistics Limited
Mr. Mahesh Fogla, Executive Director, Patel Integrated Logistics Limited says, “The budget’s initiatives to reduce stamp duty will lower costs for warehouses and other facilities, boosting infrastructure development. Increasing Mudra loan limits from 10 lakhs to 20 lakhs will enhance support for MSMEs, fostering sustainable growth. The setting up of an Integrated Technology Platform to improve the outcome under the Insolvency and Bankruptcy Code (IBC) will facilitate the recovery of outstanding for operational creditors too. Furthermore, discouraging excessive speculation activity in the stock market will redirect energies towards other economic activities, contributing to a more sustainable growth of the economy.”
4. Radisson Hotel Group South Asia
Mr. K B Kachru, Chairman Emeritus and Principal Advisor, Radisson Hotel Group South Asia & President – HAI says, “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.”
5. MakeMyTrip
Mr. Rajesh Magow, Co-Founder & Group CEO, MakeMyTrip, says, “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.”
6. Star Hotels Pvt. Ltd (Shervani Hotels)
Mr. Ahsan Shervani, Vice President, Star Hotels Pvt. Ltd (Shervani Hotels) says, “We welcome the allocation of approximately ₹2,450 crores to the sector, marking a 44.7% increase from previous estimates. This funding aims to enhance employment and stimulate tourism growth which is a welcomed move. As an industry, we are still eagerly looking for a bit more rationalization in the GST structure for hotels and grant of infrastructure status to the industry.”
7. Pacific Hospitality
Ms. Shreya Anand, Director, Pacific Hospitality says “The Union Budget 2024-25 presents a promising outlook for the hospitality sector, with a focus on boosting tourism and enhancing the overall travel experience. The government’s emphasis on infrastructure development, simplification of tax policies, and initiatives to promote cultural and heritage tourism are expected to drive growth and create new opportunities for the sector. As we navigate the intricacies of this fiscal blueprint, it’s clear that strategic agility and adaptability will be paramount. With a keen eye on innovation and growth, we must harness the opportunities presented by this budget to propel our organization forward. By doing so, we’ll not only mitigate potential challenges but also unlock new avenues for success and sustainable progress. We welcome the government’s efforts to support the industry and look forward to working together to achieve the vision of making India a leading tourist destination.”
8. Brightsun Travel, India
Mr. Sandeep Arora, Director, Brightsun Travel, India says, “We welcome the 2024 budget, especially the focus on boosting spiritual tourism which not only honours the country’s rich cultural heritage but also opens up new avenues for travel and tourism. The special focus on Bihar and Odisha will see extensive development and promotion of religious and historical sites such as Bodh Gaya, Rajgir and Nalanda. Odisha also has a great potential as a destination for religious and beach tourism. The new initiatives to improve infrastructure and connectivity in these offbeat destinations will attract both domestic and international tourists, offering a much-needed boost to the local economy.”
9. CYK Hospitalities
Mr. Pulkit Arora, Director, CYK Hospitalities says, “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.”
What are your thoughts on the Budget 2024? Let us know in the comments section below!
Cover Image Credits: Canva Images
For more such snackable content, interesting discoveries and the latest updates on food, travel and experiences in your city, download the Curly Tales App. Download HERE.