Union Budget 2024-25: Travel and Tourism Stocks Surge

23 Jul 2024 , 01:28 PM

Travel and tourism stocks saw a boost following the Union Budget’s announcement of measures aimed at enhancing domestic travel. Finance Minister Nirmala Sitharaman outlined significant initiatives, including the construction of the Vishnupath temple in Gaya and the Mahabodhi temple in Bodhgaya, modelled after the Kashi Vishwanath corridor.

Additional plans involve preserving Rajgir’s hot springs and developing Nalanda, alongside support for Odisha’s temples, scenic landscapes, and pristine beaches. Stocks such as Yatra Online, Easy Trip Planners (Ease My Trip), EIH, Thomas Cook, and Praveg saw gains of up to 4% in response.

The interim Union Budget allocated 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.

Industry stakeholders had hoped for measures such as the rationalization of Goods and Services Tax (GST), uniform taxation for hotel rooms, and infrastructure status for the tourism sector. Infrastructure status would facilitate access to cheaper loans and improve ease of business operations.