Key Budget 2025 Announcements for the Tourism and Hospitality Industry

Key Budget 2025 Announcements for the Tourism and Hospitality Industry

By Manu Vardhan Kannan

Published on February 1, 2025

The Union Budget 2025 has been presented today, The government of India has unveiled several key initiatives that will shape the future of Hospitality and Tourism industries.

One of the standout announcements is the development of the top 50 tourism sites across the country, which will be taken up in a challenge mode with the states. Hotels under this initiative will be included in the harmonized infrastructure list, providing them with necessary resources and support.

In a move to foster employment-led growth, the government plans to launch intensive skill development programs in hospitality management institutes. Along with this, Mudra Loans will be available for homestays, and Performance Linked Incentives (PLIs) will be given to states for effective destination management, including marketing efforts and the provision of tourist amenities. E-visa facilities will also be extended to certain tourist categories, streamlining the travel process for international visitors.

Additionally, medical tourism is set to receive a significant push under the “Heal in India” program. In partnership with the private sector, the government will work towards attracting international patients seeking quality and affordable medical treatment in India. This will be facilitated by improved visa norms and enhanced capacity in the healthcare sector.

The UDAAN regional connectivity scheme, which has already brought air travel closer to the middle class by enabling 1.5 crore people to travel, will see further improvements. A modified version of this scheme will be rolled out to enhance regional connectivity to 120 new destinations, aiming to carry 4 crore passengers in the next decade. The scheme will also support the development of helipads and smaller airports in hilly and underserved regions.

Further development will take place in Bihar with the facilitation of Greenfield airports to meet the growing travel demand. This will complement the ongoing expansion of Patna airport, further boosting connectivity in the state.

In another major move, the government has proposed an extension for startups, allowing a 5-year extension on the period of incorporation, with the new deadline set for 2030 and It’ll shape up the future of food and beverage industry 

On the personal finance front, Finance Minister Nirmala Sitharaman announced a relief for taxpayers. The income tax limit for tax-free individuals will be raised from INR 7 lakh to INR 12 lakh, meaning those earning up to INR 12 lakh will not have to pay any income tax starting from the next financial year  and this move will gives financial benefits to the small players of food and beverage industry

These announcements showcase the government's dedication to elevating India as a world-class tourism destination and a prominent player in the global medical tourism market, with significant efforts being made to enhance infrastructure and drive growth in these sectors.


IHG Signs InterContinental Mumbai Goregaon, Expanding Luxury Portfolio in India

IHG Signs InterContinental Mumbai Goregaon, Expanding Luxury Portfolio in India

By Manu Vardhan Kannan

Published on June 7, 2026

IHG Hotels & Resorts has announced the signing of a management agreement with Zon Hotels (Mumbai) Private Limited for the development of InterContinental Mumbai Goregaon. Scheduled to open in Q1 2030, the new hotel will further strengthen IHG’s luxury portfolio in India and expand its presence in Mumbai, one of the country’s most important business and travel destinations.

Located in Goregaon, a rapidly growing commercial hub in Mumbai’s western suburbs, the hotel will feature 350 guest rooms, including 70 suites. Positioned between Andheri and Malad, the property will offer convenient access to key business districts, entertainment centres and transportation networks, making it suitable for both business and leisure travellers.

The signing marks another milestone for InterContinental Hotels & Resorts, the luxury brand known for delivering globally inspired experiences while connecting guests with local culture and destinations. The brand currently operates more than 237 hotels worldwide and has over 100 properties in its development pipeline.

Commenting on the development, Sudeep Jain, Managing Director, South West Asia, IHG Hotels & Resorts, said:

"We are delighted to partner with Zon Hotels (Mumbai) Private Limited to bring InterContinental Mumbai Goregaon to the city. Mumbai continues to demonstrate strong demand across both business and leisure travel, and Goregaon's emergence as a growing commercial corridor makes it an ideal location to expand our luxury portfolio."

He added:

"InterContinental Hotels & Resorts is synonymous with culturally rich and globally inspired hospitality. With InterContinental Mumbai Goregaon joining our portfolio, we look forward to creating a destination that offers world-class amenities, intuitive service, and a strong sense of place, catering to the evolving needs of modern travellers."

Sandip Gupta, Director, Zon Hotels (Mumbai) Private Limited, said:

"We are pleased to partner with IHG Hotels & Resorts to bring the world-renowned InterContinental brand to Goregaon. This collaboration builds on our existing relationship with IHG and reflects our shared vision of developing landmark hospitality destinations. We are confident the hotel will set a new benchmark for luxury hospitality in Mumbai. Leveraging IHG's global expertise, enterprise systems, and powerful loyalty platform, we are well positioned to deliver exceptional value to both guests and stakeholders alike."

The hotel will feature five dining venues, including an all-day dining restaurant, specialty restaurants, a bar and a lobby lounge. Guests will also have access to a range of wellness and leisure facilities, including a fitness centre, spa and swimming pool.

Designed to cater to large-scale events and corporate gatherings, the property will offer extensive meeting and event spaces, including one of the largest ballrooms in Mumbai. Additional facilities will include retail spaces and ample parking, enhancing the overall guest experience.

Commenting on the project, Ishwar Shukla, Director, DGS Group, said:

"The hotel will be a landmark destination in North Mumbai and a flagship asset for all stakeholders involved. Designed to the highest international standards, the property will feature exceptional architecture and contemporary design, setting a new benchmark for hospitality in the region. Catering to a diverse range of customer segments, the hotel will offer world-class experiences, combining luxury, comfort, and outstanding service."

As IHG continues to expand its luxury and lifestyle portfolio across India, InterContinental Mumbai Goregaon is expected to play a key role in strengthening the company’s presence in major gateway cities. The property aims to combine international hospitality standards with meaningful local experiences, creating a distinctive luxury destination in Mumbai.

IHG currently operates 52 hotels across seven brands in India, including InterContinental Hotels & Resorts, Six Senses, Crowne Plaza, voco Hotels, Holiday Inn Resort and Holiday Inn Express. The company also has a strong pipeline of 98 hotels planned to open across the country over the next three to five years.


IndiGo Temporarily Suspends Six International Routes Until September

IndiGo Temporarily Suspends Six International Routes Until September

By Manu Vardhan Kannan

Published on June 7, 2026

IndiGo has temporarily suspended operations on six international routes between July and September 2026 as part of its network optimisation efforts. The airline said the move is aimed at aligning capacity with current market conditions amid softer seasonal demand and a challenging operating environment.

Services to Langkawi, Krabi, Ho Chi Minh City, Hong Kong and Shanghai will be suspended from 1 July 2026, while flights to Siem Reap will be paused from 3 July 2026. The temporary suspension is expected to remain in effect until 30 September 2026.

The airline has confirmed that bookings for all affected routes will reopen from 1 October 2026. However, it noted that services could return earlier if market conditions improve and operational factors become more favourable.

According to IndiGo, the upcoming quarter typically experiences lower demand in certain international markets. This, combined with rising operating costs and ongoing airspace restrictions, prompted the airline to review and adjust its network deployment strategy.

Despite the temporary route suspensions, IndiGo will continue to operate more than 1,800 weekly international flights across its network. The airline emphasised that the changes impact only a small portion of its international operations and are intended to support operational reliability while matching capacity with demand.

The carrier said the decision forms part of its broader approach to managing capacity efficiently, maintaining network integrity and remaining flexible in response to changing market dynamics. It will continue to monitor travel demand, operating costs and airspace developments while assessing future network plans.

IndiGo also stated that affected passengers will be informed proactively and advised travellers to check the latest flight schedules and updates before planning their journeys.

The temporary suspensions come at a time when airlines across the industry are dealing with increased fuel costs, airspace constraints and broader geopolitical developments that continue to influence global aviation operations. IndiGo said the network adjustment has been planned to minimise inconvenience to customers while ensuring the airline remains ready to respond when market conditions strengthen.


Migsun Group to Invest ₹250 Crore in New Delhi’s First Luxury Serviced Apartment Development

Migsun Group to Invest ₹250 Crore in New Delhi’s First Luxury Serviced Apartment Development

By Hariharan U

Published on June 7, 2026

Migsun Group has announced plans to invest approximately ₹250 crore in the development of what is envisioned as New Delhi’s first luxury serviced apartment project, marking a significant step into the growing hospitality-led residential segment.

Located in Rohini, the upcoming development is expected to redefine premium urban living by combining the comforts of luxury residential spaces with the convenience, flexibility, and services typically associated with the hospitality sector. The project reflects changing consumer preferences as modern travellers, professionals, and long-stay residents increasingly seek managed living environments that offer both comfort and convenience.

The development is planned to feature nearly 500 premium serviced apartments designed to cater to a diverse customer base including corporate professionals, business travellers, expatriates, non-resident Indians (NRIs), medical tourists, and affluent urban residents looking for fully managed lifestyle experiences in the national capital.

One of the project's key advantages lies in its strategic location. Situated in Rohini, the development is expected to provide easy connectivity to major business districts, commercial hubs, healthcare facilities, and social infrastructure across Delhi-NCR. Its proximity to Indira Gandhi International Airport, approximately 20 minutes away, is expected to further enhance its appeal among domestic and international travellers.

The announcement comes at a time when professionally managed serviced residences are witnessing increasing demand globally. Shifts in work culture, greater mobility among professionals, the rise of extended business travel, and the growing popularity of flexible long-term stays have positioned serviced apartments among the fastest-growing segments in the real estate and hospitality sectors.

Commenting on the project, Yash Miglani, Managing Director of Migsun Group, highlighted the evolving preferences of modern consumers.

The way people live, travel, and work is evolving rapidly. There is a growing preference for premium managed residences that offer the comforts of home along with world-class hospitality and professional services. Through this development, we aim to introduce a globally benchmarked luxury serviced apartment concept in New Delhi and create a landmark destination that caters to modern lifestyle aspirations,” he said.

The project is expected to offer a comprehensive range of hospitality-inspired amenities, including wellness facilities, concierge services, business support infrastructure, lifestyle experiences, and premium resident services. These features are being designed to meet the expectations of today's discerning consumers who increasingly prioritise convenience, flexibility, and personalised experiences.

The proposed development also aligns with Migsun Group's broader growth strategy of diversifying into emerging and high-potential real estate segments. With more than 2 crore square feet delivered and under development, the company continues to expand its presence across residential, commercial, and retail real estate markets in North India.

Industry observers note that while serviced apartments have witnessed strong growth in global gateway cities, the segment remains relatively underdeveloped in the Delhi market. The Rohini project therefore has the potential to introduce a new asset category that bridges the gap between traditional residential ownership and hospitality-led living.

Further details regarding apartment configurations, design specifications, pricing, and launch timelines are expected to be announced in the coming months.

With this investment, Migsun Group aims to create a landmark development that not only strengthens its real estate portfolio but also establishes a new benchmark for luxury serviced living in the national capital.

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