Union Budget 2024 : We are hoping for budgetary allocations to promote tourism in the country – Amit Jain, Founder, Magicfares
The Indian travel and tourism sector has demonstrated remarkable resilience recently. Increasing demand for hospitality services, bustling airports, and renowned travel destinations underscores that tourism is not merely a recreational activity but a crucial driver of global economic expansion. As per recent reports, the industry is expected to contribute significantly to the global GDP and employment creation by 2030, affirming its robust trajectory. With ancillary sectors also poised for significant growth, career opportunities are set to expand manifold in the travel and tourism industry. We need a cohesive approach that would encompass the public and private sector on one hand, and the government (state and central governments, and local authorities) on the other hand, in order to continue developing world class tourism infrastructure.
Recognizing tourism as a sustainable engine for economic growth and development, it is imperative to accord industry status to the travel and tourism sector, which will help in the regularization of policies and processes and better access to finance. We envision a strategic redistribution of tourism across diverse geographies, fostering inclusivity and exploration beyond traditional hotspots. The government’s continued efforts to enhance infrastructure, including new airports and expanded transportation networks, alongside developing religious circuits and lesser-known attractions, are pivotal for national growth and future-proofing the tourism sector. Improved accessibility can significantly boost tourism, benefiting local economies.
We also believe that the standardisation of tax collected at source (TCS) at five per cent on foreign travel packages should be considered, against the current five per cent and 20 per cent slabs. This is hampering our business as customers prefer to use alternate channels that are outside the domestic tax net.
The government should bring in changes such as reduction in income tax and related exemptions which could also benefit the sector to a great extent by creating a favorable environment for people to spend their disposable income on travel. We also expect rationalisation of GST rates to make hotel stays more affordable for tourists. The budget should modify the Leave Travel Allowance (LTA) rules to include the amount spent on hotel stays to be considered as LTA expense.
Further, corporates should be offered with incentives for organizing meetings and conferences in India through partial or full tax exemptions on the expenses incurred, thereby boosting domestic travel and tourism. Incentives for hotels, resorts, and travel agencies are also needed to promote local destinations. We are also hoping for budgetary allocations for global marketing campaigns to promote tourism in the country.
Overall, the industry looks forward to ease of doing business to ensure that the travel and tourism sector continues to be the one of the foremost employers in the country. As the sector contributes significantly to the influx of the forex, we expect the government to implement strategic initiatives that will position India as a global travel hub.
Amit Jain, Founder, Magicfares
