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.


IHCL Signs Amã Stays & Trails Bungalows in Port Blair

IHCL Signs Amã Stays & Trails Bungalows in Port Blair

By Manu Vardhan Kannan

Published on May 4, 2026

amã Stays & Trails, the premium homestay offering from Indian Hotels Company (IHCL), has announced the signing of a new cluster of bungalows in Port Blair, marking its entry into the Andaman and Nicobar Islands.

Mr. Puneet Chhatwal, Managing Director and CEO, IHCL, said, “As travel preferences continue to evolve towards experience-led stays, the homestay segment has emerged as a strong driver of growth. With a portfolio of over 370 bungalows across India, the expansion of amã Stays & Trails to the Andaman and Nicobar Islands, marks the brand’s foray into the island destination reflecting our focus on building a diversified presence across leisure destinations. We are delighted to partner with Mr. Abhishek Singh for this project.”

The upcoming amã Stays & Trails, Port Blair will feature ten bungalows set in lush green surroundings, located within walking distance from Manjery beach. The property will include a restaurant along with a range of amenities such as a fully equipped gym, spa, meditation and yoga decks, and a swimming pool. Guests will also have the opportunity to explore activities like snorkelling in clear waters and experiencing the region’s unique colonial and tribal heritage.

Known for offering stays that reflect local culture and heritage, amã Stays & Trails continues to expand its presence across scenic destinations in India. The portfolio already includes over 370 bungalows across locations such as Goa, Himachal Pradesh, Uttarakhand, Karnataka, Kerala, Maharashtra, Rajasthan, Tamil Nadu, West Bengal, Pondicherry, and Sikkim, among others.

Mr. Abhishek Singh, Founder & Chairman, Terra Rex Realty and Terra Rex Energy, said, “Port Blair, a historic town and the gateway to the Andaman and Nicobar Islands, offers travelers a unique blend of natural beauty and cultural heritage. We are delighted to collaborate with IHCL’s amã Stays & Trails on this project to bring these experiences to life for our guests.”

Port Blair, the capital of the Andaman and Nicobar Islands, is known for its scenic beaches such as Chidiya Tapu and landmarks like the Cellular Jail, offering visitors a mix of natural beauty and historical significance.

With this signing, IHCL continues to strengthen its presence in leisure destinations, while expanding its homestay portfolio to meet the rising demand for experience-driven travel.


Rise Infraventures Closes 45,000 Sq Ft GCC Office Deal

Rise Infraventures Closes 45,000 Sq Ft GCC Office Deal

By Manu Vardhan Kannan

Published on May 4, 2026

Rise Infraventures has successfully closed a 45,000 sq. ft. GCC office space deal within the DLF portfolio for a leading global insurance broking firm. The transaction stands out not just for its size, but for the way it was structured to meet specific client needs within a limited timeframe.

The requirement came with its own set of challenges. The client was looking to expand and relocate quickly, while also wanting to stay within a building they strongly preferred. With limited availability in such scenarios, the situation required a more thoughtful and flexible approach.

Rise Infraventures addressed this by working closely within the existing ecosystem and identifying an opportunity that could benefit all parties involved. The team advised an existing energy company to shift to a space that better suited its budget and changing workplace needs. This move helped free up a larger office space, which was then made available for the incoming firm.

Speaking about the deal, Sonakshi Wadhawan, CBO, Rise Infraventures, said:

“This was a well-aligned mandate where the client was keen to expand within the DLF ecosystem, with clear timelines and space expectations in place. While availability is often a constraint in such scenarios, it also presents an opportunity to think more collaboratively. By working closely with an existing energy occupier and understanding their evolving workspace and cost priorities, we were able to facilitate a relocation that suited them better, while unlocking the required space for the incoming firm. The process came together smoothly through parallel coordination, resulting in a timely and efficient outcome that worked well for both occupiers.”

The deal highlights Rise Infraventures’ approach of going beyond regular transactions by focusing on practical solutions within existing setups. By aligning timelines, occupier needs and available inventory, the team was able to turn a complex requirement into a smooth and balanced outcome for everyone involved.


Bengaluru Airport Reports Strong FY26 Growth Led by International Traffic

Bengaluru Airport Reports Strong FY26 Growth Led by International Traffic

By Manu Vardhan Kannan

Published on May 3, 2026

Kempegowda International Airport Bengaluru (BLR Airport) reported a strong performance in FY 2025–26, driven by steady growth in passenger traffic, better global connectivity, and consistent cargo movement. The airport handled 44.47 million passengers during the year, marking a 6.2 per cent year-on-year increase, along with 532,000 metric tonnes of cargo, which saw a 6 per cent rise.

International traffic played a major role in this growth, increasing by 23.9 per cent to reach 7.23 million passengers. Domestic traffic also saw an uptick, growing by 3.3 per cent to 37.24 million passengers. This performance reflects Bengaluru’s continued position as a leading business and innovation hub, maintaining steady progress despite global challenges.

Transfer traffic saw notable growth, rising by around 22 per cent year-on-year and contributing 15.7 per cent to the total passenger numbers. While domestic transfers grew by 3.2 per cent, international transfer traffic expanded by over 50 per cent, indicating the airport’s growing importance as a transit hub. The ‘Connections by BLR’ initiative played a key role in improving transfer experiences and strengthening airline partnerships.

The airport also expanded its global reach by adding new international destinations such as Hanoi and Riyadh. Frequencies were increased on several important routes, including London Heathrow, Bangkok, Bahrain, Jeddah, Phuket, Kuwait, Kathmandu, Munich, and Mauritius. Among the busiest international routes were Dubai, Abu Dhabi, Singapore, London Heathrow, and Kuala Lumpur. On the domestic side, major routes included Delhi, Mumbai, Kolkata, Hyderabad, and Pune, along with new connections to Navi Mumbai, Jaisalmer, Bidar, Silchar, and Dimapur.

Operational activity grew in line with passenger traffic, with 280,800 air traffic movements recorded during the year, up 4.5 per cent. The airport handled an average of 769 daily movements, with a peak of 837 in a single day. Passenger traffic also reached a daily high of 139,111.

Cargo operations remained strong, supported by a network of 15 cargo airlines connecting to 38 destinations. BLR Airport continued to serve as an important link to global logistics hubs such as Chicago, Singapore, London Heathrow, Frankfurt, Shenzhen, and Hong Kong. Growth was driven by demand across segments like agri-perishables, pharmaceuticals, auto components, electronics, and e-commerce.

Perishables continued to be a key contributor, with the airport maintaining its position as India’s leading gateway for perishable exports for the fifth year in a row. The handling of around 60 million rose stems, along with increased exports of mango and coriander, highlights this strength. The launch of the AISATS BLR Logistics Park further improved cargo capacity and efficiency.

With consistent growth across both passenger and cargo segments, BLR Airport is steadily strengthening its role as a major aviation and logistics hub in India, supported by better connectivity, infrastructure expansion, and a focus on future-ready operations.

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