As Budget 2025 approaches, the hospitality industry is voicing its expectations for strategic reforms to drive growth and innovation. Vishal Puri, Co-Founder of Spalba, highlighted the industry's need for simplified GST compliance to ease operational challenges and promote business expansion.

“The hospitality sector is a vital contributor to India’s economic growth, and while it holds immense potential, operational hurdles must be addressed,” Puri stated. He urged the government to prioritize GST streamlining, which would reduce administrative burdens and foster a more business-friendly environment.

Beyond taxation, sustainability remains a key focus for the industry. Puri emphasized the importance of introducing mandatory sustainability practices such as energy-efficient construction and waste management. He suggested that tax incentives for renewable energy adoption in hotels and resorts could significantly lower operational costs while promoting eco-friendly practices.

In addition to physical infrastructure, digital advancements are critical for the sector’s growth. Puri advocated for the integration of digital twin technology, which creates virtual replicas of physical spaces, enabling hotels to optimize operations and elevate customer experiences. He proposed that the government incentivize the adoption of digital infrastructure technologies, especially in large-scale projects and government-backed events, to accelerate industry-wide transformation.

“A balanced approach merging sustainability, digital transformation, and regional growth will not only help the hospitality sector thrive but also contribute to a smarter, greener India,” he added. Encouraging digital innovation, such as e-infrastructure solutions with robust intellectual property protections, will pave the way for long-term sectoral growth and efficiency.

About Spalba

Spalba is a SaaS-based event-tech platform revolutionizing venue scouting and event planning. The platform empowers hotels like The Leela, Trident, and The Oberoi by offering advanced tools such as 3D walkthroughs and digital twins. These technologies enable hotels to provide virtual venue tours, reducing the need for physical visits and cutting down carbon footprints. By enhancing online presence and streamlining event planning, Spalba helps hotels attract international clients, boost bookings, and drive revenue growth.

With the right policies and government support, industry stakeholders believe that Budget 2025 can pave the way for a future where hospitality seamlessly integrates sustainability with digital transformation.

With the Union Budget 2025 on the horizon, the travel and hospitality sectors are optimistic about government initiatives to drive growth and recovery. Industry leaders are calling for focused measures to unlock the potential of a sector that contributes 7% to India’s GDP and supports over 39 million jobs.

Yogesh Mudras, Managing Director of Informa Markets in India, highlighted the sector’s immense potential, stating, “With India projected to reach a $125 billion tourism market by FY27, targeted measures are crucial. Investments in infrastructure such as airports, roads, railways, and public transportation can enhance connectivity and accessibility for both domestic and international travellers.” He further emphasized the need for simplifying GST for hospitality and aviation, financial support for MSMEs, and streamlined visa processes to attract digital nomads.

Mudras also underscored the importance of technological advancements and sustainability in shaping the industry’s future. He suggested incentivizing smart tourism and encouraging the adoption of AI, blockchain, and IoT to enhance traveler experiences and operational efficiency. Sustainability initiatives, such as eco-friendly infrastructure and waste management, are also crucial for long-term growth.

The upcoming Mahakumbh 2025 in Prayagraj presents a unique opportunity for the sector. With a proposed budget of ₹6,990 crore, the event is expected to generate approximately ₹25,000 crore in revenue and attract around 400 million visitors. The tourism and accommodation sectors are anticipated to benefit significantly, potentially contributing ₹40,000 crore to the economy.

Ambika Saxena, Group CEO of TWH Hospitality, echoed the sentiment, emphasizing the need for increased budgetary allocation to support tourism in emerging destinations. She remarked, “Strengthening domestic tourism initiatives and introducing policies to attract international tourists will not only boost employment but also attract investments and contribute significantly to India’s GDP.”

The industry sees Budget 2025 as a pivotal moment to position India as a global tourism leader. With domestic tourism witnessing a 14.8% revenue growth and a long-term vision of establishing a $4 trillion tourism economy by 2047, stakeholders are hopeful for progressive policies and strategic investments that will ensure a thriving and sustainable future for the sector.

As the Union Budget 2025 approaches, Vijeta Soni, Co-Founder & CEO of Sciative Solutions, shares her insights on the measures needed to foster growth in India’s travel and hospitality industry. Her expectations highlight the importance of infrastructure development, tax reforms, and sustainability-focused initiatives.

"As a SaaS company driving dynamic pricing and revenue growth for the Indian travel and hospitality industry, I am optimistic about Budget 2025 and its potential to address critical challenges while fostering growth," says Soni.

Key Budget Expectations for Travel and Hospitality

1. Enhanced Connectivity:
Soni emphasizes the need for investments in air, rail, and road infrastructure, particularly to improve access to tier-2 and tier-3 cities through the development of new airports, railway lines, and highways. Improved connectivity would unlock the tourism potential of smaller cities and foster regional economic growth.

2. GST Reforms for Hotel Rooms:
The hospitality sector is hopeful for a reduction in GST rates on hotel rooms priced above ₹7,500. Soni believes this move would make India a more competitive destination for domestic and international tourism, driving demand across the industry.

3. Standardized Regulations for Intercity Mobility:
Soni highlights the need for a national regulatory framework to replace fragmented state-specific rules governing intercity passenger mobility. Standardized regulations would promote fair competition, create a level playing field, and improve the overall travel experience.

4. Support for Electric Mobility:
With a focus on sustainability, Soni calls for subsidies, tax incentives, and infrastructure development for electric buses to facilitate the transition to greener fleets. She emphasizes that this shift would not only reduce emissions but also align the industry with global sustainability goals.

A Vision for Long-Term Growth

"These measures would not only address current challenges but also pave the way for long-term growth and sustainability in the travel and hospitality industry," Soni concludes.

As the industry awaits the Union Budget 2025, voices like Vijeta Soni’s shed light on the critical reforms and investments needed to unlock the full potential of India’s travel and hospitality sectors while championing sustainability and innovation.