The Union Budget 2024-25 has garnered a positive response from the tourism and hospitality sector, with key industry figures applauding the government's initiatives. Mr. SP Jain, Chairman and Founder of Pride Hotels Group, shared his perspective on the budget's impact.

SP Jain's Viewpoint:

"We warmly welcome the budget announced today by Finance Minister Nirmala Sitharaman. The government's focus on the tourism industry, especially the development initiatives for Jharkhand, Odisha, and the North East, is commendable. The special emphasis on Rajgir and Nalanda will undoubtedly enhance religious and cultural tourism, creating new opportunities for growth and community engagement.

In 2023, India's tourism sector attracted over 9 million foreign tourists, marking a remarkable growth rate of over 40% year-on-year. The budget's commitment to enhancing spiritual tourism, particularly through the development of significant sites like Bodh Gaya and the Vishnupada Temple, is a strategic move that promises substantial economic benefits for the regions involved.

However, we had hoped that the Honorable Minister would grant infrastructure status to the hospitality industry. As a highly capital-intensive sector, our industry requires significant investments, and the initial 3-4 years often yield no profits due to high-interest loans from banks. Granting infrastructure status would enable us to access loans at lower interest rates, facilitating the development of more hotels and improving the quality of facilities offered. This is essential to attract both Indian and international tourists and to support the overall development of our industry," said Mr. SP Jain, Chairman and Founder, Pride Hotels Group.

The Union Budget 2024-25 is set to enhance India's tourism landscape significantly. With targeted investments in key spiritual and cultural sites and a focus on regional development, the budget aims to boost tourism, create jobs, and stimulate economic growth. Industry leaders like SP Jain appreciate these efforts but continue to advocate for infrastructure status to further support the sector's growth.

The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, has elicited varied reactions across different sectors. Animesh Kumar, Head of Commercials at ibis & ibis Styles India, provides his perspective on the budget's implications for tourism and hospitality.

Budget Reaction Quote by Animesh Kumar:

"It is highly encouraging to see that the Hon'ble Finance Minister has underscored the vital role of tourism in driving our economy and boosting employment and GDP. The enhanced focus on developing tourism corridors at Vishnupad Temple and Mahabodhi Temple, modeled after the successful Kashi Vishwanath Temple initiative, will significantly contribute to tourism growth during the Amrit Kal. Additionally, the government's support for transforming Nalanda in Bihar into a major tourist destination is a noteworthy step forward. Finance Minister Sitharaman's announcement of an economic policy framework aimed at ushering in next-generation reforms to drive economic growth further underscores this commitment. The Union Budget's robust allocation of Rs 11.11 lakh crore for capital expenditure also highlights a strong commitment to infrastructure development.

However, to fully harness the potential of the hospitality sector and further enhance tourism, it was crucial for the government to consider more lenient tax policies and allocate a substantial budget to elevate hotel standards. We are optimistic that future support from the Government will include granting infrastructure status to the hospitality and tourism sectors, which will help us achieve long-awaited progress and drive sustained growth."

Animesh Kumar appreciates the budget's focus on enhancing tourism infrastructure and supporting key spiritual sites. While he acknowledges the positive strides made, he advocates for more support in terms of tax policies and funding to advance the hospitality sector. With continued government commitment, there is hope for significant progress and growth in both tourism and hospitality industries.

The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, was eagerly anticipated by the hospitality sector, especially in light of the Government of India's vision of Viksit Bharat by 2047. Pradeep Shetty, President of the Federation of Hotel & Restaurant Associations of India (FHRAI), offers his perspective on the budget’s implications for the sector.

Comment by Pradeep Shetty:

"The hospitality sector has been pinning high hopes on the Union Budget for 2024-25 presented by Smt. Nirmala Sitharaman today, on the backdrop of the Government of India's stated vision of Viksit Bharat by 2047 and the critical role tourism industry holds in achieving it. However, there is nothing spectacular in the budget to bring structural changes to address the fundamental challenges it faces in a competitive world order and to accelerate the growth of the sector to be a $3 trillion economy by 2047.

Some key demands of tourism & hospitality to revitalise the sector such as GST rationalisation, granting of infrastructure status and bringing ease of doing business and policy reforms have not been considered in the budget once again, given the well-accepted multiplier effect of tourism on employment and economy. The hospitality sector is disappointed but not dejected as the overall focus on infrastructure development, employment generation, skill development, and development of religious tourism centres are the silver linings which will help the sector to tide over some of the critical challenges that it faces today. The focus of Budget 2024 on youth employment, skill development, and job creation are welcome initiatives. The industry has been facing a shortage of skilled workforce, especially in the hospitality sector.

It is also laudable that the Honourable Finance Minister's Budget speech highlights the Government's commitment to making India a premier global travel destination through targeted investment and strategic initiatives. Development of iconic spiritual sites along with the promotion of cruise and beach tourism can be helpful in attracting both domestic and international tourists."

While the Union Budget 2024-25 may not have met all the expectations of the hospitality sector, particularly regarding structural reforms and GST rationalization, it does offer positive elements such as infrastructure development, skill enhancement, and the promotion of tourism. These measures are expected to support the sector in overcoming current challenges and contribute to India's goal of becoming a leading global travel destination.