As we gear up for Union Budget 2022-2023, Naveen Kundu, Managing Director, EbixCash Travel Services – India, South East Asia & Middle East writes how this budget offers an opportunity to the Indian government to address long-standing demands of the tourism and hospitality segments.
We all know that the tourism and hospitality sector has been the worst hit and it is now 3rd year in a row with practically no revenues. We have lost talent, lost business and everything is in a standstill mode. Even domestic tourism that has shown some signs of recovery gets into a lean patch with every wave leaving everyone guessing, what is coming next.
Investments in tourism are at an all-time low and if not now, then I feel there will never be a time when the tourism sector in this country will ever get its due.
Imagine the sector that generates 50 million jobs a year, contributes almost 10% to India’s GDP, and form the core of large indirect taxes gets just Rs. 2,000 crores in budget allocation with no specific plan ever narrated by any Finance or Tourism Minister.
Personally, I have huge expectations from this budget and the Finance Minister (Nirmala Sitharaman). Some of my expectations are as below:
1. Declare the Tourism sector as a priority one for the next two years and offer it industry status.
2. Provide budget for loans with rates of interest as offered to industry, with the flexibility of re-structuring the loans at least twice due to the lean cycles we observe every now and then. Offer tariffs that are at par with the industry if not lower.
3. Provide tax concession to hotels and resorts in India to boost demand for domestic tourism and inbound tourism
4. Provide tax subsidy to travel agents who promote inbound tourism (FOREX earning agencies); offer them incentives on earning FOREX as exports sector
5. Create a budget to appoint several large PR companies globally to promote product ‘India’ with all its diversity and hospitality
6. Provide tax refunds to domestic travellers who spend a substantial amount of their vacation budgets in India.
7. Offer financial tax support to corporates/associations who conduct their meetings and events in the country.
8. Offer direct financial support up to Rs. 1,000 crores for all global companies/associations and world bodies who conduct their events, conferences, and exhibitions in India.
9. Announce a state of art skill development institute on the lines of IIMs which will be India’s first Tourism University offering various courses.
10. Reduce haulage on luxury trains and offer tax subsidy on operating more luxury and Bharat Gaurav trains in India.