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Union Budget 2023: Hospitality and Tourism industries reaction

Union Budget 2023-24: In the Budget 2023 announcement made by Union Finance Minister Nirmala Sitharaman, she said that the promotion of tourism was going to be taken up in mission mode, including with the help of PPPs. She also underlined the potential of the sector in creating jobs and opportunities for the youth. She added that in a bid to boost the sector, 50 tourist destinations would be chosen through a challenge to be developed into a whole package for domestic and international tourism.

Apart from this, states will also be encouraged to establish a unity mall in the respective capital cities or in the most popular tourist destination to promote and sell ‘One District, One Product’, GI products and other handicraft, etc. Initiatives will also be taken to set up tourism in villages adjacent to the border. Soon after her announcements, stocks of tourism-related players started rallying, displaying initial positive reaction from the investors.

Players from the industry have also shared their views about the Budget.

Mr. Nandivardhan Jain, CEO & Founder, Noesis Capital Advisors: The Union budget has shown positive signs for the Hospitality, Travel, and Tourism industries, the Union Finance Minister Nirmala Sitharaman has encouraged the states to set up a ‘Unity Mall’ in the state capital or at an attractive tourist destination in the state for the promotion and sale of ‘One District, One product’ (ODOP) and Geographical Indication (GI) products along with other handicrafts.

While the Minister announced 50 tourist destinations will be selected and developed as a whole package for domestic and international tourism, the overall development with this vision is an impetus to the sector. The FM Sitharaman stated, “Dekho Apna Desh’ initiative was launched by the Prime Minister to the middle class to prefer domestic tourism over international tourism whereas ‘Swadesh Darshan Scheme’ was launched for integrated development of theme-based tourist circuits”. Moving towards, emboldening the active participation of states, convergence of government programmes and public-private partnerships. The future seems bright and an exciting one with 50 additional airports, and helipads to be revived to increase connectivity with the budget of 3,114 crores to the union civil aviation ministry. This will further increase the passenger movement and boast the hotel room inventory across the region which will increase employment opportunities and parallelly uplift the community, promoting sustainable tourism.

Mr. SP Jain, Chairman and Managing Director, Pride Hotels Limited: The Honorable Finance Minister Smt. Nirmala Sitharaman has announced the development of tourist places jointly by public and private partnerships. This will give a much-needed boost to the domestic tourism segment. The budget specifies that 50 tourist destinations will be selected and developed as a whole package for domestic and international tourism. We welcome this announcement. For domestic tourism “Dekho Apna Desh” has already been promoted very widely now similarly international tourism too will be revived with these initiates. The tourist infrastructure will also be provided on the border and in North East India which will be highly beneficial for the inflow of tourists. The industry can harness the direct and multiplier effects of tourism in employment generation to the youth of India as the sector creates direct and indirect job opportunities. We believe these implementations will play a pivotal role in overall economic development. This is a good budget for the hospitality and tourism sectors.

Vinay Dube – Founder and CEO, Akasa Air: It’s impressive to note that the budget’s focus has been on the promotion of tourism, considering it’s one of the biggest drivers of economic growth in India. FM Sitharaman’s statement that the sector holds huge potential has been backed by an increase in 9X capital outlay, which is the highest-ever allocation to railways. Progressive initiatives announced by the government on the upgradation of railway stations and full electrification of broad gauge routes by end of 2023 are welcome steps. The current budget’s focus on the active development of railway infrastructure, faster roll-out of Vande Bharat train sets, better connectivity and new rail lines will fuel train travel demand in India.

Sonica Malhotra Kandhari, Joint Managing Director, MBD Group: Union Budget 23-24 turns out to be a much-awaited relief for the battered tourism sector. Specific focus on this sector will help this industry rebound.

Rajesh Magow, Co-Founder and Group CEO, MakeMyTrip: The Union Budget 2023-24 has some positive takeaways for tourism, given the decision to promote the industry on mission mode via the participation of states, the convergence of government schemes and public-private partnerships. The country offers immense attractions for both domestic and foreign tourists. A proactive approach will help in tapping India’s tremendous tourism potential. Through an integrated approach, a minimum of 50 destinations are to be selected via the challenge mode. Under the ‘Dekho Apna Desh’ initiative, every destination will then be developed as a complete package for tourists. Besides, through the Vibrant Villages Programme, infrastructure and amenities for tourists would be facilitated in border villages.

Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Limited: With the increasing growth of the country, India being the 10th biggest economy to now the fifth biggest economy in nine years the increasing spending power of the country in an exciting time for the F&B industry with more disposable income and a rush of brands entering India.


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