Budget 2024: Travel industry experts share their insights and expectations

On July 23, Finance Minister Nirmala Sitharaman made history by presenting her seventh consecutive Union Budget for the fiscal year 2024-25. This unprecedented achievement surpasses the record previously held by former Prime Minister Morarji Desai, who delivered six consecutive budgets between 1959 and 1964. The budget is anticipated to address a wide array of needs across various sectors, including travel and tourism. As the industry awaits the detailed implications, key figures from the travel sector have shared their expectations and reactions to the new fiscal proposals. 

Abhishek Goyal, Executive Director of Aeroprime Group, expressed optimism about the budget's impact on domestic tourism. "We are highly encouraged by the 2024 budget's focus on enhancing domestic tourism through improved infrastructure and connectivity. These reforms are poised to revitalize the cargo and logistics sector. This initiative aligns perfectly with our commitment to driving growth and innovation in the aviation and logistics industries. We look forward to the positive ripple effects this will have on the economy and our industry," he stated. His comments highlight the anticipated benefits of infrastructure improvements and their potential to stimulate the broader travel and logistics sectors. 

Vishal Kamat, Executive Director of Kamat Hotels India Limited and Chairman of CII Maharashtra State, highlighted the budget's employment-oriented approach and its potential impact on the hospitality industry. "The 2024 budget is notably employment-oriented, addressing the needs of various workforce segments, from those starting from scratch to those in mid and lower-level positions. The adjustments in income tax will provide additional income, bridging the gap between employers and employees' capabilities, which will significantly benefit the workforce," Kamat explained. He also praised the budget's focus on temple tourism, citing the positive effects of similar initiatives on local economies. 

"The emphasis on temple tourism in the budget is commendable. We have witnessed the grassroots impact of such initiatives, benefiting everyone from tea vendors to local grocers when we recently opened our first Ira by Orchid Hotels in Ayodhya. Expanding these efforts to other sacred sites like Kashi Vishwanath and Ayodhya can help uplift entire communities, ensuring that every individual in these holy regions reaps the benefits," he added. 

Shreya Anand, Director of Pacific Hospitality, lauded the government's focus on tourism and infrastructure development. "The Union Budget 2024-25 presents a promising outlook for the hospitality sector, with a focus on boosting tourism and enhancing the overall travel experience. The government's emphasis on infrastructure development, simplification of tax policies, and initiatives to promote cultural and heritage tourism are expected to drive growth and create new opportunities for the sector. As we navigate the intricacies of this fiscal blueprint, it's clear that strategic agility and adaptability will be paramount. With a keen eye on innovation and growth, we must harness the opportunities presented by this budget to propel our organization forward. By doing so, we'll not only mitigate potential challenges but also unlock new avenues for success and sustainable progress,” she remarked. 

‘We welcome the government's efforts to support the industry and look forward to working together to achieve the vision of making India a leading tourist destination," added Shreya. 

Somesh Agarwal, Chairman and MD at Radisson Blu Palace Resort & Spa, Udaipur, emphasized the budget's positive implications for the tourism and hospitality sectors. He stated, "This year’s Union Budget 2024-2025 comes as a ray of hope and relief for the hospitality and tourism sectors. Tourism has always been an integral part and driver of the hospitality industry. It’s encouraging to see the government’s focus on positioning India as a global tourist destination. This was required considering India’s growing popularity as a tourist hub. The strong fiscal support announced in the budget will undoubtedly unlock new economic opportunities for the sector. 

Additionally, under the government’s Viksit Bharat Vision, the substantial CAPEX allocation of Rs. 11,11,111 crore for infrastructure, accounting for 3.4% of GDP, stands as a testament to their commitment to robust infrastructure development over the next five years. Moreover, Phase IV of the PMGSY will be launched in the future, providing all-weather connectivity to 25,000 rural habitations.” 

He further mentioned, “Such reforms will be pivotal to enhancing connectivity and infrastructure, making destinations like Udaipur even more accessible and attractive to tourists from around the world. We look forward to leveraging these developments to provide our guests with unparalleled experiences. We hope and expect to attract a diverse array of tourists, enriching their travel experiences while contributing to the growth of the Indian tourism industry in the times to come." 

Sandeep Arora, Director of Brightsun Travel, India, also highlighted the budget's focus on spiritual tourism. "We welcome the 2024 budget, especially the focus on boosting spiritual tourism which not only honours the country’s rich cultural heritage but also opens up new avenues for travel and tourism. The special focus on Bihar and Odisha will see extensive development and promotion of religious and historical sites such as Bodh Gaya, Rajgir, and Nalanda. Odisha also has great potential as a destination for religious and beach tourism. The new initiatives to improve infrastructure and connectivity in these offbeat destinations will attract both domestic and international tourists, offering a much-needed boost to the local economy," Arora commented. 

Overall, the 2024 budget is poised to drive significant growth and transformation within the travel and tourism sectors. With a strong focus on infrastructure development, cultural tourism, and employment generation, the budget addresses key industry needs and sets the stage for a revitalized and dynamic sector.

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