As Union Budget 2026 introduces a wide range of tourism-focused announcements, leaders from India’s hospitality and travel industry have shared optimistic views on the government’s vision to strengthen the sector through connectivity, skilling, sustainability and destination development.

Rahool Macarius, Market Managing Director, Eurasia, Wyndham Hotels & Resorts, welcomed the Budget’s emphasis on cultural and regional tourism. He said,

"We appreciate the government's focus in the Union Budget 2026, which reinforces India's commitment to strengthening the hospitality and tourism sector. By reimagining heritage sites, supporting Buddhist circuits, and enhancing connectivity through initiatives such as the Green High-Speed Rail Network, the Budget will increase tourism demand and attract more visitors to culturally, historically, and spiritually significant cities. This, in turn, will strengthen tourism in Tier-II and Tier-III regions, providing a strong platform for hospitality brands to expand alongside India's growth trajectory. Initiatives such as world-class hospitality talent hubs, professional guides, and structured skilling programs are expected to elevate visitor experiences, extend stays, and support local economies. Coupled with digital destination initiatives and sustainable eco-trails, these measures will enhance service standards, create dignified livelihood opportunities for young talent, and give a meaningful boost to the overall growth and competitiveness of India's hospitality sector."

Richa Adhia, Managing Director, Eight Continents Hotels & Resorts, highlighted the Budget’s focus on workforce development and sustainable tourism. She stated that the government’s efforts to create dignified livelihoods, develop hospitality talent hubs and invest in professional guides will significantly raise service standards while strengthening local employment. She also noted that initiatives around heritage revitalisation, eco-trails, digital destinations, adventure and medical tourism are expected to attract global travellers and enhance visitor engagement.

Sharing a detailed industry perspective, Mr. Sarbendra Sarkar, Managing Director & Founder, Cygnett Hotels & Resorts, said Budget 2026 presents a future-ready roadmap for tourism and hospitality. He emphasised that talent development, digital destination platforms, creator-led promotion and improved connectivity through green high-speed rail corridors will boost visibility, travel affordability and inter-city mobility. He added that initiatives covering eco-friendly mountain trails, Buddhist circuits, heritage revitalisation, medical tourism and Purvodaya-led development will diversify tourism beyond traditional markets and support balanced, sustainable growth.

Mr. Sumit Mitruka, Founder & CEO, Summit Hotels & Resorts, pointed to the transformative impact of high-speed rail connectivity to Siliguri and the Northeast. He noted that faster and more reliable access would reduce travel fatigue, encourage longer stays and support off-beat destinations. He also highlighted that the development of structured trekking routes could unlock experiential tourism while preserving ecological integrity and generating livelihoods for local communities.

Mr Ritwik Khare, Founder and CEO of ELIVAAS, described Budget 2026 as a growth-driven vision that aligns infrastructure, mobility and affordability. He said the announcement of seven high-speed rail corridors will change travel behaviour by enabling shorter and more frequent trips, while the reduction in overseas tour package TCS will improve overall travel sentiment. According to him, these measures support the growing demand for private villas and flexible stay formats across regions.

Offering a regional perspective, Mr. Bhavik Sheth, Chief Operating Officer, Evoke Experiences, welcomed the focus on upgrading Indus Valley Civilisation sites such as Dholavira and Lothal. He said that structured investment in interpretation centres and visitor infrastructure can position Gujarat as a global heritage destination and open opportunities for immersive, experience-led tourism rooted in history and local communities.

Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts, observed that Union Budget 2026 reflects a shift from destination-led tourism to purpose-driven journeys. He highlighted the emphasis on wellness, spiritual circuits, nature-led travel, adventure tourism and regional connectivity. He added that investments in hospitality education, guide skilling and digital knowledge platforms will raise service standards and support responsible, community-led tourism growth.

Overall, industry leaders agree that Budget 2026 creates a strong foundation for long-term growth in India’s hospitality and tourism sector, driven by connectivity, capability building and sustainable development.

Tamil Nadu witnessed a major boost to its tourism and hospitality sector with the signing of Memoranda of Understanding worth Rs 22,700 crore at the Tamil Nadu Global Tourism Summit 2026, held at Mamallapuram. The wide-ranging investments are set to strengthen tourism infrastructure across the state, covering hotels, amusement parks, sports facilities, heritage attractions, and healthcare projects.

The announced investments include new hotels, a multipurpose sports stadium, sports recreation parks, amusement parks, a heritage theme park in Chengalpattu, and a ropeway project in Salem, among others. These developments are expected to enhance Tamil Nadu’s appeal across leisure, heritage, spiritual, and experiential tourism segments.

In a first-of-its-kind move, Tamil Nadu Chief Minister M.K. Stalin announced the formation of a dedicated Tourism Governing Body for Mamallapuram. The special body will oversee basic infrastructure works and tourist facilities in the heritage town. An initial allocation of Rs 100 crore has been announced for this initiative.

A key highlight of the summit was the signing of an MoU with Vietnam’s largest conglomerate, Vingroup, the parent company of VinFast. The group will establish VinWonder amusement parks and a luxury hotel in Tamil Nadu. The state government also signed an MoU with Arenaone to develop sports and recreation centres with an investment of Rs 1,400 crore, creating employment for 2,100 people.

SPR Group signed an MoU worth Rs 500 crore to set up a multi-purpose convention centre in the heart of Chennai, strengthening the city’s position as a major events and business tourism destination.

Several major hotel projects were announced across Tamil Nadu. Sujan Life will invest Rs 500 crore in a wilderness resort in Coimbatore. Brigade Hotels will invest Rs 900 crore in Chennai, while Kodai Heights will invest Rs 300 crore in Kodaikanal. Other notable hotel investments include projects by J Hotels, Giovanni Resorts, Hall Mark Group, Home Trotter, Ampa Group, Ankit Construction, Popeyye Hotel in Tiruppur and Tiruvannamalai, Sangu Chakra Hotels in Ramnad, CGH Heritage Resort, YMRT Hotels in Kanchipuram, Sri Venkateshwara Hotels, Chandrakela Hotel in Tirupattur, Amutha Surabhi in Coimbatore, Ramya Group in Trichy, VGP in Trichy, Birdee Club Hotel in Chennai, Direct Hotels in Thanjavur, Rathna Group in Trichy, Great Lagoon in Coimbatore, and Ascott Hotels. Several other firms also signed MoUs for projects in Nellai, Theni, Kanyakumari and other regions with investments below Rs 50 crore.

Adding further momentum, Amrita Group signed a Rs 3,000 crore MoU with the Tamil Nadu government to develop a heritage theme park in Chengalpattu, which is expected to generate employment for 12,000 people. GRT Hotels & Resorts also signed an MoU worth Rs 300 crore to develop luxury hotels in Coimbatore and Tuticorin.

Beyond tourism and hospitality, L&T announced plans to set up a multi-speciality hospital at Siruseri SIPCOT with an investment of Rs 600 crore. The project, spread across four acres, is expected to create employment for 3,000 people, supporting medical infrastructure and allied tourism opportunities.

With these large-scale commitments, Tamil Nadu is set to witness a new phase of tourism-driven growth, strengthening employment, infrastructure, and the state’s overall appeal as a diversified tourism destination.

As Union Budget 2026 introduces a range of initiatives aimed at strengthening India’s tourism and hospitality ecosystem, industry leaders have shared positive reactions, highlighting the Budget’s focus on infrastructure, connectivity, skilling and destination-led growth.

Dinesh Yadav, Founder and MD of Fine Acers, described Budget 2026 as a turning point for the tourism and hospitality industry. He said,

"Budget 2026 is the most decisive signal we've seen in years that tourism is no longer a soft sector, it is now a core economic growth engine, it is now a core economic growth engine. With tourism already contributing close to 7–8% of India's GDP and supporting millions of direct and indirect jobs, this Budget finally gives the sector the long-awaited structural push it deserves. The hotel business will benefit from the establishment of seven high-speed train routes which the government proposed. The improved transportation links between major cities and developing areas will boost weekend tourism and multiple city travel and continuous need for vacation resorts and unique accommodation experiences.

The program to educate 10000 tourist guides while establishing five medical tourism centers will improve service standards and attract high-value international travelers to the region. Medical tourism alone is projected to grow into a USD 50 billion market in the coming years.

Combined with investments in national waterways and coastal connectivity, Budget 2026 firmly positions tourism as a catalyst for jobs, regional development and long-term hospitality investment."

Ms. Amrita Gupta, Director, Manglam Group and CEO, Manglam Spa and Resorts, also welcomed the Budget, noting its positive direction for destination development and sustainable tourism. She said,

"Budget 2026 sends a clear and positive signal for tourism and hospitality. Continued emphasis on infrastructure, connectivity and destination development will strengthen India's position as a global travel hub. The focus on developing 15 archaeological and cultural sites, promoting eco-tourism, and expanding adventure and nature-led experiences reflects a well-rounded approach to destination building. Equally important is the push to improve regional connectivity and tourism circuits, which will unlock new growth opportunities across leisure, wellness and experiential travel. For Manglam, this aligns closely with our hospitality vision of creating thoughtfully designed destinations that celebrate nature, culture and sustainable tourism, particularly in markets like Rajasthan."

Industry leaders believe that the combined focus on transportation, skilling, medical tourism, eco-tourism and cultural destinations under Budget 2026 will support sustained growth, generate employment and strengthen India’s global tourism positioning.