Hospitality Leaders Applaud Union Budget 2025's Boost for Tourism & Innovation

Hospitality Leaders Applaud Union Budget 2025's Boost for Tourism & Innovation

By Manu Vardhan Kannan

Published on February 5, 2025

The Union Budget 2025 has set the stage for significant advancements in India's hospitality and tourism sectors. Industry leaders have expressed optimism about the budget’s strategic focus on tourism infrastructure, enhanced connectivity, and skill development initiatives that are expected to elevate India's global standing as a prime travel destination.

Strengthening Tourism & Hospitality Infrastructure

Mr. Sarbendra Sarkar, Founder & MD of Cygnett Hotels and Resorts, welcomed the government’s emphasis on tourism, particularly the development of 50 key destinations under challenge mode. He highlighted how initiatives such as streamlined e-visas and visa-free access for select tourist groups will boost international footfall. He also appreciated the inclusion of new hotels in these destinations in the Infrastructure Harmonized List (HML), allowing hospitality investors to access infrastructure lending under more favorable terms.

“The move to include new hotels in the HML will provide easier access to larger funds through External Commercial Borrowings (ECBs), enabling greater expansion and modernization in the hospitality sector,” said Mr. Sarkar.

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Additionally, he noted the positive impact of the government's modified UDAN scheme, which aims to strengthen connectivity to 120 new destinations, particularly focusing on the northeastern region’s helipad development. The enhanced connectivity will unlock untapped tourism potential, further promoting India’s cultural and historical sites.

Hospitality Industry’s Growth Prospects

Echoing similar sentiments, Mr. K Syama Raju, President of the Federation of Hotel & Restaurant Associations of India (FHRAI), emphasized the budget’s role in developing top tourism destinations in partnership with state governments. He lauded the decision to grant Infrastructure Status to hotels in these areas, which will facilitate long-term, cost-effective financing and improve hospitality standards.

“The inclusion of hotels in the harmonious master list aligns with our long-standing request for Infrastructure Status, allowing access to lower-cost funding for hospitality expansion,” said Mr. Raju.

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Another major highlight was the focus on medical and wellness tourism through the 'Heal-in-India' initiative. With India already being a global leader in affordable, high-quality medical treatments, this initiative is set to attract more international patients, strengthening the country’s healthcare tourism sector.

The government’s focus on religious tourism was also well received. Enhancing infrastructure at key pilgrimage sites is expected to create more organized and accessible travel experiences for both domestic and international visitors. Additionally, the visa fee waivers and simplified e-visa options will further support inbound tourism growth.

Support for Entrepreneurship & Innovation

Innovation and entrepreneurship were also key focus areas in the budget, receiving praise from Mr. Sanandan Sudhir, Founder and CEO of On2Cook. He highlighted the government’s Rs 20,000 crore allocation to promote innovation and the introduction of a fund of funds for next-generation entrepreneurs as pivotal measures for fostering global capabilities in India.

“We appreciate the introduction of the National Framework for promoting innovation in tier 2 cities and the proposal for Centres of Excellence in AI for Education. These initiatives, coupled with the Bharat Trade Net platform to enhance international trade, will play a crucial role in positioning India as a global innovation hub,” said Mr. Sudhir.

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However, he also urged the government to reconsider the current tax regime and introduce lower GST rates for sustainable, globally patented products. He further suggested subsidizing international certification costs to ease export market entry for startups.

The Road Ahead

Overall, the Union Budget 2025 has been met with enthusiasm from the hospitality and innovation sectors. With targeted infrastructure investments, enhanced connectivity, and policy support for tourism and entrepreneurship, industry leaders believe these measures will position India as a premier global destination for travelers, businesses, and investors alike.


Skyscanner Names Suryakumar Yadav as First Brand Ambassador in India

Skyscanner Names Suryakumar Yadav as First Brand Ambassador in India

By Manu Vardhan Kannan

Published on September 4, 2025

Skyscanner has named Indian cricketer Suryakumar Yadav, popularly known as ‘SKY’, as its first brand ambassador in India. This marks the company’s most significant consumer outreach initiative in the Indian market so far.

The partnership builds on the rising trend of sport-led travel in the country, with research showing that nearly half of Indian travellers are willing to travel specifically to watch live cricket. By joining hands with a cricketer of Yadav’s popularity and cultural influence, Skyscanner aims to strengthen its presence among Indian travellers and inspire them to explore new destinations with ease.

Known as ‘Mr. 360’ for his versatile cricketing style, Yadav will now extend his influence off the field by encouraging travellers to experience the joy of discovery with Skyscanner. The collaboration begins with a digital contest on Skyscanner India’s and Yadav’s social media channels, where fans can create personalised travel itineraries for the cricketer using Skyscanner’s features. Selected winners will get the chance to meet Yadav in person, offering unique engagement opportunities between the brand and its community.

Speaking about the partnership, Suryakumar Yadav said: “Travel has always been something that excites me as much as cricket,  whether it is exploring new places during tours or discovering hidden gems on break. Partnering with Skyscanner feels natural because it’s about making travel simple, smart, and full of possibilities. I’m looking forward to inspiring more fans to combine their love for cricket with the joy of discovering the world.”

Neel Ghose, Country Manager & General Manager, Travel Expert, Skyscanner, India, added: “We are really excited to welcome SKY to the Skyscanner family. His connection with people across India makes him the perfect partner to help us show travellers just how simple, affordable and joyful planning a trip with Skyscanner can be. With him alongside, we aim to make travel not just more accessible, but a source of inspiration and connection for every Indian traveller. Last year, we inaugurated our first office in India and today marks yet another special occasion with SKY as the face of our brand.”

Through this collaboration, Skyscanner hopes to encourage Indian travellers to see travel as both accessible and aspirational, combining their love for cricket with the excitement of exploring new places.


Zomato Hikes Platform Fee to ₹12 Ahead of Festive Season

Zomato Hikes Platform Fee to ₹12 Ahead of Festive Season

By Manu Vardhan Kannan

Published on September 4, 2025

Zomato has raised its platform fee on food delivery orders to ₹12 from ₹10, as demand is set to surge during the festive season. The fee is charged per order and does not include goods and services tax (GST).

The hike comes shortly after rival Swiggy raised its platform fee to ₹14 (inclusive of GST) in select pin codes, citing growing order volumes. Both Zomato and Swiggy had introduced the platform fee in 2023 and have steadily increased it over time.

The move reflects growing financial pressures on the two food delivery giants as they continue to invest heavily in quick commerce, even as growth in their core food delivery business has moderated. For the April–June quarter, Zomato’s parent company reported a 16% year-on-year growth in gross order value at ₹10,769 crore, slower than the over 20% growth it had recorded until recent quarters.

Despite a 70% jump in revenue, Zomato posted a sharp 90% decline in consolidated net profit at ₹25 crore compared to ₹253 crore a year earlier. Swiggy, meanwhile, saw its quarterly losses widen to ₹1,197 crore, largely due to investments in its quick commerce vertical Instamart, even as its operating revenue rose 54% to ₹4,961 crore.

Industry experts believe platform fee hikes will continue to support profitability. “The strategy of raising platform fees ahead of the festive season and retaining the higher rate later has been in place since last year, when the fee was increased from ₹6 to ₹10. The platform fee has increased six times since its introduction on Zomato. For every rupee of platform fee added, Zomato’s take rates improve by 22 basis points,” said Karan Taurani, Executive Vice President at Elara Capital.

Meanwhile, new competition may test the duopoly of Zomato and Swiggy. Rapido has recently launched its food delivery service, Ownly, in Bengaluru, positioning itself as a lower-cost alternative with commissions ranging from 8–15% for restaurants, compared to the 16–30% charged by Zomato and Swiggy. Currently, Ownly is operational in Koramangala, HSR Layout, and BTM Layout.

With platform fees rising and competition heating up, India’s food delivery landscape is poised for a dynamic shift in the months ahead.


Hospitality Sector Gains as GST 2.0 Comes Into Effect

Hospitality Sector Gains as GST 2.0 Comes Into Effect

By Manu Vardhan Kannan

Published on September 4, 2025

The Indian government has announced a significant reform in the Goods and Services Tax (GST) structure, introducing two primary slabs of 5% and 18%. The decision was taken at the 56th GST Council meeting and will take effect from 22 September 2025, coinciding with the beginning of Navaratri.

Under the revised system, essential food items such as bread and paneer will be exempt from GST, while agricultural and food products will attract only 5%. This move is expected to reduce costs for consumers and the food service industry alike. Sin goods, including gutka, tobacco products, and carbonated drinks, will face a higher rate of 40% GST.

For the hospitality industry, the changes bring notable relief. GST taxation on rooms in hotels are also comes under the new GST slabs.

Hotel rooms with tariffs of less than or equal to Rs 7500 per day will be taxed at 5% without input tax credit (ITC) from 12% with inputs tax credit (ITC), as per recommendations made by the 56th GST Council. This move will enhance both the hospitality and tourism industry, with hotel stays now becoming more affordable.

This system continues to simplify hotel accommodation taxation, while the reduction of GST on essential goods and appliances used in hotels, such as air conditioners and televisions, paves the way for operational cost savings. Additionally, milk products and butter now fall under 0% from 5%, that means no tax for these products, creating the potential for reduced prices of dairy-based dishes and desserts like ice creams and pastries in hotel restaurants.

Mr. Varadharajan, Chartered Accountant and Hotel Tax Consultant, welcomed the move, stating that the revised GST will help bring down costs for both hotel operators and guests, making hospitality more accessible.

The GST 2.0 reform signals the government’s intent to balance affordability with economic growth, offering a direct benefit to hotels, restaurants, and consumers. With its timing aligned with the festive season, the initiative is expected to boost travel, dining, and overall demand in the hospitality sector.

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