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.


17 Injured After Air India Phuket–Delhi Flight Encounters Turbulence

17 Injured After Air India Phuket–Delhi Flight Encounters Turbulence

By Manu Vardhan Kannan

Published on August 5, 2026

Air India Flight AI2379, operating from Phuket to Delhi, encountered severe turbulence during its journey on Tuesday, leaving 17 people injured, including 13 passengers and four cabin crew members. Despite the incident, the aircraft landed safely at Indira Gandhi International Airport, Delhi, where medical teams were immediately deployed to assist those onboard.

The flight, operated by an Airbus A320 (VT-EXO), was carrying 137 passengers, including three infants, along with eight crew members comprising two pilots and six cabin crew.

According to Air India, the aircraft experienced a momentary change in altitude during the cruise phase before stabilising and continuing its journey safely to Delhi. Flight tracking platform Flightradar24 indicated that the aircraft descended by approximately 300 feet around 2.5 hours into the flight, while flying over Odisha.

Following the landing, medical teams attended to all passengers and crew as a precaution. Eight passengers and four cabin crew members were admitted to hospitals for detailed medical evaluation and treatment. Air India stated that all those admitted are stable and are receiving appropriate medical care, while the remaining passengers were provided with the necessary assistance and support.

image

The Minister of Civil Aviation, Kinjarapu Ram Mohan Naidu, personally visited the injured passengers at Fortis and Medanta Hospitals to enquire about their condition and assure them of the government's full support. Senior officials from the Ministry of Civil Aviation also visited the hospitals and are coordinating closely with the airline and hospital authorities to ensure the injured receive the best possible medical care.

The aircraft has since been moved to the hangar, where the Flight Data Recorder (FDR) and Cockpit Voice Recorder (CVR) have been secured for detailed examination.

The Directorate General of Civil Aviation (DGCA) has initiated a comprehensive investigation into the incident. The Ministry of Civil Aviation and DGCA said they are closely monitoring the situation, reiterating that passenger safety remains the highest priority and that all necessary measures are being taken.


Bikanervala to Open New Outlet at SPS Realty's Helios in Zirakpur

Bikanervala to Open New Outlet at SPS Realty's Helios in Zirakpur

By Manu Vardhan Kannan

Published on August 3, 2026

SPS Realty has announced that Bikanervala, one of India's most recognised food and sweets brands, will open a new outlet at its flagship commercial development, Helios, located on VIP Road in Zirakpur. The addition is set to strengthen the project's retail and food & beverage ecosystem while enhancing its appeal as a lifestyle destination.

The upcoming outlet will offer Bikanervala's wide range of traditional Indian sweets, snacks, and dining options, catering to residents, businesses, and visitors from Zirakpur and nearby areas. The brand's presence is expected to serve as a key food and beverage anchor within the commercial development.

Commenting on the association, Rohit Singla, Director, SPS Realty, said, "The addition of Bikanervala at Helios reflects our vision of creating a well-rounded commercial destination that brings together premium retail, food, and lifestyle experiences. We aim to curate a diverse ecosystem where businesses can thrive while offering visitors a complete experience under one roof."

Helios has been designed as SPS Realty's flagship commercial project, featuring contemporary architecture, premium commercial spaces, and a strategic location on VIP Road. The development comprises 177 premium retail and showroom spaces, offering high-visibility opportunities for established brands, entrepreneurs, and businesses.

The arrival of Bikanervala is expected to further strengthen Helios' growing tenant mix while enhancing customer engagement by adding a well-established food and beverage destination. With increasing urbanisation and rising demand for organised retail spaces in the region, the project is positioned to emerge as a preferred commercial hub in Zirakpur.

Through this partnership, SPS Realty continues its focus on developing commercial destinations that combine retail, dining, and lifestyle experiences while creating new opportunities for businesses and consumers alike.


McDonald's India – North and East Crosses 200 McCafé Outlets, Partners with Tara Sutaria

McDonald's India – North and East Crosses 200 McCafé Outlets, Partners with Tara Sutaria

By Hariharan U

Published on August 3, 2026

McDonald's India – North and East has announced the expansion of its McCafé network to 200 outlets across North and East India, marking a significant milestone in the brand's coffee business. The expansion reflects the company's continued investment in making premium-quality coffee more accessible as India's café culture continues to evolve.

To commemorate the milestone, McDonald's India – North and East has partnered with Tara Sutaria as the face of McCafé, bringing its "Good Vibes Start with McCafe" platform to life through a new brand campaign celebrating everyday coffee moments and connections.

As part of the celebration, McCafé has also introduced a new Summer Range featuring Strawberry Matcha, Affogato, Salted Caramel Latte, Chai Latte, and Passion Fruit Cooler, expanding its beverage portfolio with refreshing and indulgent options designed for evolving consumer preferences.

Commenting on the milestone, Anant Agarwal, Vice-Chairperson, CPRL (McDonald's India – North and East), said, "At McCafé, our ambition is to build one of India's most loved and trusted coffee brands by making great coffee accessible to more consumers without compromising on quality or value. The milestone of 200 McCafé outlets reflects our continued investment in expanding our footprint and strengthening our beverage portfolio. As coffee culture continues to evolve in India, our refreshed 'Good Vibes Start with McCafe' platform, along with our collaboration with Tara Sutaria as the face of McCafé, reinforces our commitment to connecting with young consumers and making McCafé their preferred choice for everyday coffee occasions."

Sharing her thoughts on the association, Tara Sutaria said, "Coffee has always been an important part of my everyday routine, whether it's the first cup that starts my day, a mid-day pick-me-up or a quiet moment to unwind. Over the years, McCafé has become one of my go-to choices, whether I'm in India or travelling abroad, because I know I can always count on a great cup of coffee. McCafé's Cappuccino is one of my personal favourites whenever I'm looking for something indulgent. I'm delighted to be associated with a brand that shares my love for great coffee and celebrates the everyday rituals that make each cup special."

The new summer beverage range is now available across McCafé outlets in North and East India. Customers can also order through dine-in, Self-Ordering Kiosks (SOK), takeaway, drive-thru, delivery platforms, and the McDonald's App.

The campaign has been conceptualised by BBDO India, part of Omnicom Advertising India.

Stay up-to-date with the latest Hospitality news and trends in the Hospitality industry!

Subscribe to Hospitality news e-magazine for free and never miss an issue.

By clicking subscribe for free you agree to the Terms & Conditions and acknowledge our Privacy Policy.

Advertise With Us

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, etc.