Budget expectations: Travel -; Tourism sector

13 Jan 2022 , 06:34 PM

The Travel & Tourism sector has been a key contributor to the GDP and the Union Budget offers the government a significant opportunity to create a stimulus towards revival.

The last 2 years have highlighted the power of the domestic market and towards unlocking the full potential of domestic tourism, we look forward to Budgetary focus on infrastructure development, technology and health-safety across airports/aviation, road,  rail and waterways. India’s waterways offer a large underleveraged potential that includes sea and river cruising opportunities and cascading employment benefits to the catchment areas. 

Empowering our global embassies, export (zero-rated) status to the inbound tour business and deeper marketing investment is much needed to kick start inbound demand and ensure competitive viability when compared to our neighbours in the region.

We look forward to the Government’s announcement of granting Industry status, rationalisation of taxes (including a complete GST tax holiday, exemption of TCS levy on overseas holiday packages and reduction in indirect taxes), removal of SEIS benefit capping of Rs. 5 cr and introduction of soft loans with favourable terms as a stimulant to enable the sector get back on its feet. This will equally harness its force multiplier impact towards GDP contribution, employment generation/ skill development – much needed as the Country heads towards recovery, revival and growth.

The author of this article is Mr.Mr. Madhavan Menon, Managing Director, Thomas Cook India Group

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com