Budget 2026 Delivers Strong Push to Tourism and Hospitality Sector

Budget 2026 Delivers Strong Push to Tourism and Hospitality Sector

By Manu Vardhan Kannan

Published on February 1, 2026

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.


IHCL’s Soulinaire Partners with IF.BE to Elevate Cultural Experiences in Mumbai

IHCL’s Soulinaire Partners with IF.BE to Elevate Cultural Experiences in Mumbai

By Manu Vardhan Kannan

Published on April 7, 2026

Indian Hotels Company Limited’s lifestyle catering brand Soulinaire has partnered with IF.BE (Ice Factory Ballard Estate), a well-known cultural centre in Mumbai. This collaboration marks a new phase for the 150-year-old restored industrial space, bringing together culture and curated hospitality experiences.

Mr. Kamal Malik, Founding Partner, IF.BE, said, “IF.BE has always been envisioned as a space where ideas, people and disciplines converge. Through this collaboration with Soulinaire we are able to extend that vision - bringing together strong cultural programming with a level of culinary refinement and operational depth that enhances every interaction within the space.”

Mr. Abhijit Mehta, Partner, IF.BE, said, “The collaboration brings together IF.BE’s curatorial focus with Soulinaire’s systems-led approach to refined, high-volume catering and service. Known for its emphasis on personalization, scale, and consistency, Soulinaire extends IF.BE’s offering beyond programming, introducing a more considered and cohesive food and beverage dimension across events, gatherings, and daily experiences.”

Located in Mumbai’s historic Ballard Estate, IF.BE is a unique cultural hub set inside a restored 150-year-old ice factory. The space blends heritage architecture with modern art and design, creating a platform for creativity, discussions, and community engagement.

Mr. Somnath Mukherjee, Executive Vice President - Operations, IHCL, said, “This partnership brings together two brands with a shared commitment to craft, culture and experience. IF.BE has evolved into a distinctive cultural destination within Mumbai’s urban fabric, and this association marks Soulinaire’s entry into one of the city’s historic precincts to curate experiences that are rooted in design and dialogue. We are happy to collaborate with Mr. Kamal Malik and Mr. Abhijit Mehta.”

The venue features three dining and social spaces, including Native Bombay, a modern Indian restaurant, The Banyan Tree Café set in a calm courtyard, and The Native Lounge, a contemporary bar. Along with this, IF.BE offers flexible event spaces such as The Ice Factory, The Cathedral, and The Substation, which host a range of activities from art exhibitions and conferences to brand showcases and private events.

With this collaboration, IF.BE and Soulinaire aim to create a more seamless mix of culture and hospitality, offering visitors well-curated experiences that bring together food, art, and social interactions in one space.


Atmosphere Core Enters Shillong with Boutique Hotel Project

Atmosphere Core Enters Shillong with Boutique Hotel Project

By Manu Vardhan Kannan

Published on April 7, 2026

Atmosphere Core has announced its expansion into Northeast India with the launch of a boutique hotel project in Shillong. The company has partnered with Shri Rocky Dhar to introduce DHAR GOLF VISTA by Atmosphere Shillong, marking its entry into the scenic hill station of Meghalaya.

Scheduled to open in 2027, the property will be located in the capital city of Meghalaya, around an hour from Shillong Airport and close to the well-known 18-hole Golf Link Arena. The project is positioned as an upper upscale boutique hotel, designed to cater to both leisure and business travellers.

Speaking about the development, Mr. Salil Panigrahi, Co-Founder & Managing Director of Atmosphere Core, said, “As part of our dynamic expansion across India, a key focus is our approach towards developing premium experiences in hill station destinations particularly in the beautiful northeastern region. This upcoming boutique property at Shillong, Meghalaya is being thoughtfully designed to cater to a diverse range of travellers from leisure seekers and corporate guests to curated events and social get-togethers”.

The hotel, operating under the Atmosphere Hotels & Resorts brand, will feature 75 keys, including deluxe rooms, suites, and presidential suites. Guests can expect views of the golf course, surrounding greenery, mountain valleys, and the city, creating a calm and immersive stay experience.

Dining will be a key highlight at the property, with an all-day dining restaurant offering outdoor seating, a themed sports pub, and a rooftop resto bar serving both local and international cuisine along with a wide selection of beverages.

The wellness experience will be led by the award-winning ELE|NA Ayur spa, offering therapy rooms and professional treatments aimed at relaxation and rejuvenation. Additional facilities will include a swimming pool with an outdoor deck facing the golf course, a golf simulation pavilion, a kids’ play area, and an indoor games room.

At an elevation of 1,496 metres, Shillong is known for its mix of natural beauty and cultural charm. Attractions such as Ward's Lake, Elephant Falls, Shillong Peak, and Umiam Lake continue to draw travellers throughout the year. The city is also known for its vibrant music culture and festivals like the Shillong Autumn Festival.

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Mr. Souvagya Mohapatra, Managing Director Atmosphere Core India, Bhutan, Nepal & Sri Lanka, added, “The Northeastern state’s hill stations have always been central to our vision of creating iconic luxury experiences. Shillong the capital city of Meghalaya, with its awe-inspiring cultural heritage backdrop and timeless appeal, is a natural choice for our expansion. As plans to enter this extraordinary destination unfold, I am confident that this collaboration will redefine hospitality in the region”.

Shri Rocky Dhar, owner of DHAR GOLF VISTA by Atmosphere, concluded, "Atmosphere Core’s distinguished legacy of excellence aligns perfectly with our vision to unveil a transcendent world-class hotel in Shillong. With our vision and focused approach, we are committed to manifesting inspiring, bespoke hotels and resorts that embody the pinnacle of sophistication. This illustrious partnership will not only elevate Shillong’s hospitality landscape but will also set an unrivalled benchmark for elegance and impeccable service in this breathtaking and scenic Northeastern state of India."


IHCL Signs Gateway Hotel and Convention Centre Near Bengaluru Airport

IHCL Signs Gateway Hotel and Convention Centre Near Bengaluru Airport

By Manu Vardhan Kannan

Published on April 7, 2026

Indian Hotels Company Limited (IHCL), India’s largest hospitality company, has announced the signing of a Gateway Hotel and Convention Centre in Kanamangala, Devanahalli, near Kempegowda International Airport, Karnataka. This will be a greenfield project, marking another step in the company’s expansion in North Bengaluru.

Speaking on the development, Ms. Suma Venkatesh, Executive Vice President – Real Estate & Development, IHCL, said, “Bengaluru is widely recognised as one of India’s fastest-growing cities, driven by a strong business ecosystem and sustained infrastructure development. With the rapid expansion around the airport, North Bengaluru has emerged as a significant growth corridor, and this signing aligns with our strategy to build scale in the micro-market addressing the rising demand from corporate and MICE segments. We are delighted to partner with Hombale Group for this project.”

The upcoming 300-key Gateway Hotel and Convention Centre in Kanamangala, Devanahalli, will feature an all-day dining restaurant, a bar, a specialty restaurant, and a lounge. Guests will also have access to a fully equipped gym and a swimming pool, offering a comfortable stay experience.

As a convention centre, the property will include spacious and flexible banquet and meeting spaces. The largest banquet hall will span over 16,000 sq. ft., making it suitable for large conferences, corporate gatherings, and social events.

Ms. Shailaja Vijay Kiragandur of Hombale Group said, “We are happy to partner with IHCL to bring the Gateway brand to North Bengaluru aligning with the region’s growth trajectory.”

Bengaluru, often referred to as the Silicon Valley of India, continues to grow as a major hub for IT, biotechnology, aerospace, and advanced manufacturing. The steady development around the airport region has made North Bengaluru an important zone for hospitality growth.

With this addition, IHCL will expand its presence in the city to 20 hotels, including 11 currently under development.

Hombale Group, the owning company, is engaged in both construction and film production. The group has completed over 10 million sq. ft. of construction across various state and central Government projects. Hombale Films, founded by Mr. Vijay Kiragandur in 2014, is also recognised as one of the leading film production houses in South India.

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