Photo Caption: The Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman at a ceremony to mark the commencement of Budget printing process for Union Budget 2020-21, in New Delhi on January 20, 2020. The Minister of State for Finance and Corporate Affairs, Anurag Singh Thakur and other dignitaries are also seen.
The Indian government is due to present the Union Budget for the new financial year in Parliament on February 1. The industry stakeholders are expecting that Finance Minister Nirmala Sitharaman will make some announcements that will help to boost the sentiments at a time when overall economic scenario is challenging.
Mahesh Iyer, Executive Director & Chief Executive Officer, Thomas Cook (India)
With the travel and tourism sector contributing significantly to the Indian economy, we believe the Union Budget 2020 should focus on strengthening the tourism sector by continued emphasis on introducing tourism-friendly policies to give impetus to India’s Inbound, Domestic and MICE segments.
Our wish list for the Union Budget 2020 includes:
Reduction in personal income tax rates and Capital Gains Tax, placing more money in customers hands which will accelerate the growth of travel and other commercial activities
Lack of quality infrastructure and poor connectivity poses a challenge to domestic tourism, especially in the North East. Creation of new travel circuits in the North East will open a window of opportunity for the tourism sector that is still under-tapped. Concerted efforts from airlines to operate these routes along with lower GST rates on hotels will help boost increased traffic to the region
Our wish list also includes clarifying the issue of Air Travel Agent being subject to Tax Collection at Source. The amendment of the provision to section 16 (2) in claiming input tax credit on the tax charged by the airline will also help in providing for the specific scenario of payment made by corporates or registered passengers to a travel operator.
Nalini Gupta, Head of Costa Cruises India
As India has one of the largest coastlines in the world, India’s potential for capitalising and benefitting from the cruise sector is high. Cruise holidays provide one of the best options, for exploring destinations as they are a hassle-free, good value for money and an all-inclusive holiday. Further, the novelty of cruising still exists in India, as only a very small percentage of Indians have explored this form of holiday.
If the government has clear cruise friendly policies and practices, it would encourage the international cruise liners to invest in India benefiting the blue economy of the country. Infrastructural developments at par with international standards will further progress the growth of tourism in India. Successful implementation of these initiatives would generate revenue for locals, employment in the country and would also boost foreign and domestic tourism.
Amit Damani – Co-Founder of Vista Rooms
The government’s decision to reduce GST from 28 to 18% and 18 to 12% a couple of months back was a great step forward for the Hotel Industry. We hope further steps are taken to promote local tourism within India. This requires a national campaign on the lines of Incredible India with a focus on the domestic traveller.
Preety Arora, Head – Business Strategy, Amatra Hotels & Resorts
With the upcoming Union Budget for 2020-21, we are looking forward to various reforms that would enable the industry to grow exponentially. While the government is aggressive across various global markets with the marketing of India as a tourism destination, it is imperative to focus internally and address issues around infrastructure, licensing, approvals and inconsistent regulations that are imposed by various states. We are expecting reforms to be taken around single-window clearance for all operations related to approvals and licensing that makes day to day workings complicated. Further, easing of GST on F&B equivalent to Room category could be a great boost for inviting more guests to the hotels.
Sarbendra Sarkar, Founder and Managing Director, Cygnett Hotels & Resorts
The budget should have incentives for setting up hotels in far-flung areas. India has a lot of foreign and domestic tourist potential beyond the well-known destinations. However, these locations lack basic tourism infrastructure including good hotels. The budget should promote that. I also want the government to extend tax benefits and develop new schemes to promote inbound tourism which was not evident in the previous year.
Vishal Suri, Managing Director, SOTC
Indian travel and tourism sector is a significant contributor to the country’s GDP. With an assorted portfolio of niche products like cruises, adventure tourism, heritage/cultural tourism; it is also one of the highest employment generators with experienced and expert professionals. The domestic tourism sector is witnessing a boost post sanctioning of various projects under the Swadesh Darshan and PRASAD and UDAN schemes.
With the rise in sustainable tourism propagated by the adoption of electric vehicles/buses, reduction of carbon footprint is also an upcoming and imperative travel trend that is being initiated and forefronted by multiple Indian states. Cruise tourism has also witnessed tremendous growth in India with five operational ports in Mumbai, Kochi, Chennai, Mangalore and Mormugao; with two additional ports being constructed underway in Kolkata and Vizag. To fast-track these projects, it is important to focus and review multiple travel infrastructure projects in the recently revealed National Infrastructure Pipeline (NIP) to boost connectivity. Reforms such as tax rationalisation and incentivising the private sector would also play a crucial role in the growth of the sector.
Sanjeev K Nayar, General Manager, WelcomHeritage Group
Union Budget 2020-21 presented by the honorable Finance Minister Nirmala Sitharaman has emphasized on the growth of the tourism sector. Initiatives like adding 100 more airports by 2024 under the Udaan scheme will help to improve connectivity across the country and manage to cater the significant growth in the number of flyers thus giving impetus to the burgeoning domestic travel. WelcomHeritage being a heritage hospitality brand has always supported the developments that can benefit the cultural heritage of India and by allocating Rs 3,100 crore to Cultural Ministry, we expect more promotion of India’s vast rich culture and heritage. The government is also looking to develop five archaeological sites as iconic sites with on-site museums in Haryana, UP, Gujarat, Assam and Tamil Nadu, which is a good move, which will attract the tourists across the world. The budget also promised to enhance the road connectivity by constructing 2500 access control highways, 9000 km eco-development corridors, 200 coastal and port roads, 2000 km strategic highways along with the Delhi-Mumbai expressway and two other corridors, which are to be completed by 2023. It will also make travel accessible and affordable for the travellers, thus encouraging the growth in this sector. Overall the budget is very satisfactory and will positively impact the growth of travel and tourism sector.