Tourism and hospitality stocks traded with a positive bias on Wednesday after the Union Budget 2026-27 unveiled a fresh set of measures aimed at strengthening India’s tourism ecosystem. The announcements placed strong emphasis on medical tourism, skilling initiatives, and institutional capacity building, boosting investor confidence across travel and hospitality counters.

Shares of Indian Hotels Company gained 1%, while EIH rose 2%. Market analysts noted that medical tourism is emerging as a steady and high-margin segment, with the potential to increase room demand in metro and tier-1 cities over time, particularly for premium hotel brands.

Mid-segment hospitality players outperformed broader markets, with Lemon Tree Hotels jumping 6% and ITC Hotels rising 1%. Investors appeared optimistic about broader-based demand from both domestic and international travellers. The budget proposals were also seen as supportive of long-term capacity expansion, especially with increased encouragement for private participation alongside state-led initiatives.

On the travel services front, Easy Trip Planners surged 9%, emerging as the top gainer among tourism-related stocks. Investors are factoring in higher booking volumes driven by improved tourist infrastructure, better last-mile connectivity, and the government’s focus on destination branding and global market linkages through initiatives such as ODOP.

Mahindra Holidays also advanced 3%, supported by expectations that stronger domestic tourism and skilling initiatives will drive sustained growth in leisure travel. Meanwhile, Thomas Cook (India) slipped 2%, largely due to profit booking after recent gains, even as the broader policy direction under Budget 2026 remains supportive for organised travel companies.

Overall, the market reaction highlights growing optimism that the Union Budget 2026-27 could usher in a new growth phase for India’s tourism and hospitality sector, benefiting hotels, travel platforms, and allied service providers.

The Budget 2026-27 has emerged as a significant boost for India’s tourism and hospitality sector, with Finance Minister Nirmala Sitharaman highlighting tourism as a key driver of employment generation and foreign exchange earnings. The budget outlines a wide range of initiatives aimed at improving infrastructure, affordability, sustainability, and skill development across the sector.

Presenting the budget in Parliament, Sitharaman announced that 15 archaeological sites across the country will be developed into vibrant and experiential cultural destinations. These sites will feature curated walkways, allowing the public to explore excavated landscapes while enhancing cultural tourism experiences.

A major highlight of the budget is the reduction in Tax Collected at Source on international tour programmes. The TCS has been brought down from the existing 5% and 20% rates to a flat 2%, with no minimum amount condition, making international travel more affordable for Indian travellers.

The government also announced the creation of five tourism hubs across the Purvodaya states of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. As part of this initiative, provisions will be made for 4,000 e-buses to improve connectivity and promote sustainable transportation.

To strengthen tourism education and industry collaboration, Sitharaman proposed the establishment of a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology. The institute will act as a bridge between academia, industry, and government. In addition, a pilot scheme will be launched to train tourist guides across major tourism hubs in India.

Sustainable and nature-based tourism also received focused attention in the budget. Ecologically sustainable mountain trails will be developed in Himachal Pradesh, Uttarakhand, Jammu and Kashmir, Araku Valley in the Eastern Ghats, and Pothigai Malai in the Western Ghats. Bird tourism development projects will also be initiated in Pazhaverkadu in Tamil Nadu. Further, turtle trails will be created along key nesting sites in Odisha, Karnataka, and Kerala.

Spiritual tourism is set to gain momentum under Budget 2026, with announcements for state-of-the-art infrastructure development, including meditation centres and enhanced facilities at spiritual destinations across the country.

The budget also places strong emphasis on connectivity and mobility. Seven high-speed rail corridors will be developed between key city pairs, including Mumbai–Pune, Hyderabad–Pune, Hyderabad–Bengaluru, Hyderabad–Chennai, Chennai–Bengaluru, Delhi–Varanasi, and Varanasi–Siliguri. These corridors are envisioned as growth connectors supporting environmentally sustainable passenger transport.

In a move to promote medical and wellness tourism, the government announced the development of five new regional medical hubs in partnership with private players. A hub for medical value tourism will also be established to attract international patients. Supporting infrastructure such as a National Destination Knowledge Grid will be introduced to manage and share information related to tourist destinations.

Further enhancing travel experiences, 20 new national waterways will be developed over the next five years to improve water transport efficiency. Incentives will be provided for seaplane operations through a Seaplane VGF scheme, making water-based connectivity more viable.

Adding further support to allied sectors, Sitharaman announced that no import tax will be collected on fish captured in international waters. This move is expected to benefit both the fisheries and hospitality sectors by supporting supply chains and cost efficiency.

With these wide-ranging measures, Budget 2026 sets the stage for a new wave of growth in tourism and hospitality, promising enhanced guest experiences, stronger infrastructure, and long-term benefits for hotels, tourism operators, and travellers alike.

The Hospitality & Tourism Conclave 2026, hosted at ITC Fortune Select, Siliguri, concluded after two days of focused dialogue on the future of hospitality and tourism in Eastern India. Organised by the Indian Chamber of Commerce (ICC), the conclave brought together hotel owners, founders, senior operators, developers, technology providers and industry stakeholders from across the country, reinforcing the region’s growing relevance in India’s tourism economy.

Unlike broad, headline-driven discussions, the conclave stood out for its practical and region-specific approach. Conversations across panels and keynote sessions centred on real operational challenges, investment strategies and sustainable scaling models. A recurring theme was that Eastern India’s growth trajectory will be shaped by long-term thinking, local context and collaboration, rather than rapid, imitation-led expansion.

Sumit Mitruka, Founder and CEO of Summit Hotels & Resorts and Chairman of the Hospitality & Tourism Committee at ICC, emerged as a key voice throughout the conclave. Through his keynote address and moderation of multiple sessions, Mitruka emphasised sustainable hotel development, the importance of regional identity and the need for owners, brands and solution providers to work closely together. Drawing from his operational experience across Eastern and North-Eastern India, he offered grounded insights into destination building and profitability in emerging markets.

Commenting on the scale and participation at the conclave, Harsh Berlia, Chairman, ICC North Bengal, said, “The ICC North Bengal Tourism and Hospitality Conclave 2026 saw a confluence of speakers from across the industry, coming together from around the country. This further strengthens our conviction that this region is among the fastest-growing hospitality markets. It was encouraging to see both brand owners and hotel owners actively engage through panels, meetings and site visits on the sidelines. We are hopeful that several discussions will translate into ongoing deals, and we look forward to an even larger gathering next year.”

One of the most engaging sessions, From the East to the Nation: Building Scalable, Iconic Hospitality Brands, examined how regional brands can expand without losing their core identity. Speakers cautioned against adopting metro-centric templates and stressed the importance of building brands rooted in local culture, demand patterns and operational realities.

The conclave also featured keynote addresses by Harshavardhan Neotia, Chairman of Ambuja Neotia Group, who spoke on institution-building and responsible tourism development, and Vikram Challur, Senior Vice President at MakeMyTrip, who shared insights on evolving travel demand, distribution trends and changing guest behaviour.

Other sessions explored direct bookings and digital funnels, hospitality technology and AI, design-led ROI, marketing storytelling and emerging hospitality formats. Delegates noted that the discussions were candid, actionable and closely aligned with real-world decision-making.

Participants included leaders and representatives from Summit Hotels & Resorts, Mayfair Hotels & Resorts, Radisson Hotel Group, Lemon Tree Hotels, Fortune Park Hotels, The Postcard Hotel, Elivaas, The Hosteller, Ambuja Neotia Group, Club Mahindra, Ascott, MakeMyTrip, Simplotel, Djubo, BookingJini, Yanolja Cloud Solution and Colliers, among others. The mix of established hotel brands and new-age hospitality platforms underlined the conclave’s emphasis on pragmatic growth and collaboration.

Strong engagement was also seen in the exhibition and networking zones, with meaningful exchanges between hospitality leaders and solution providers. Many delegates noted that the conclave successfully demonstrated Siliguri’s ability to host high-impact, national-level industry platforms.

The Hospitality & Tourism Conclave 2026 concluded with a clear takeaway: Eastern India’s hospitality sector is entering a more confident and mature phase, driven by collaboration, realism and a sharper understanding of the region’s unique strengths.