Overseas Marketing Budget of Ministry of Tourism Falls to Record Low

Overseas Marketing Budget of Ministry of Tourism Falls to Record Low

By Nishang Narayan

Published on February 3, 2025

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, has once again sidelined India’s inbound tourism sector and the Incredible India campaign. While the total budget allocation for the Ministry of Tourism remains nearly unchanged at INR 2,541 crore (compared to INR 2,484 crore in 2024-25), the allocation for overseas promotion and publicity, including Market Development Assistance (MDA), has dropped drastically to INR 3.07 crore.

This sharp cut follows the previous budget, which had set aside INR 33 crore for the same category, an amount that was retained in the revised estimates as well. Industry stakeholders have expressed disappointment, stating that the government’s approach is pushing the inbound tourism sector towards self-reliance rather than providing necessary support.

Instead, the government has prioritized domestic tourism promotion, allocating nearly INR 137 crore out of the total INR 140 crore earmarked for branding and promotions. This shift underscores the administration’s focus on promoting domestic travel over attracting international visitors.

Aviation Sector Sees Budget Cuts

The aviation industry has also witnessed a significant cut in allocations for 2024-25. A major chunk—INR 1,158.79 crore—has been assigned to AI Asset Holdings Ltd. to service loans transferred to the special purpose vehicle (SPV) as part of Air India’s financial restructuring. This marks a decrease from INR 1,144.49 crore in 2023-24, with the revised estimate standing at INR 713.92 crore.

Industry Reactions

Reacting to the budget, a prominent tour operator stated, “The government is indirectly asking the inbound tourism industry to be ‘Atma Nirbhar.’ While the budget supports hotels, homestays, and domestic tourism, there’s absolutely nothing for inbound tourism, which is a major foreign exchange earner for the country.”

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Another industry expert pointed out that while Tax Collected at Source (TCS) relaxations will boost outbound travel, there are no concrete measures to support inbound tourism. “People with a PAN card can now claim tax reimbursement, making outbound travel more attractive, but there’s no stimulus for foreign tourists coming to India,” he added.

Moreover, the gap between budget estimates and revised allocations for tourism continues to widen. The initial budget estimate for 2024-25 was INR 2,485 crore, but the revised estimate dropped sharply to INR 855 crore—just 34% of the planned allocation.

Conclusion

While the government has introduced measures to ease e-visa processes and implement visa fee waivers for select countries, the severe cut in overseas marketing funds raises concerns about India's ability to attract global tourists. As the tourism industry recovers post-pandemic, stakeholders believe that sustained international branding and promotions are crucial to maintaining India’s competitive edge in global tourism.


Israel Concludes Largest Civilian Evacuation, Aids Over 125,000 Amid Conflict

Israel Concludes Largest Civilian Evacuation, Aids Over 125,000 Amid Conflict

By Nishang Narayan

Published on July 11, 2025

The Israel Ministry of Tourism has officially concluded its largest civilian evacuation operation, marking the end of an unprecedented initiative that housed more than 125,000 residents displaced by the Swords of Iron War. On July 7, 2025, the civilian emergency operations center, which was launched under the leadership of Minister of Tourism Haim Katz, formally closed after nearly two years of continuous efforts.

The operation, which began on October 18, 2023, was set up within days with the support of the Israel Hotel Association. In just one week, nearly 100,000 people were assigned to hotel accommodations. At its peak, over 90,000 evacuees were hosted across hotels nationwide on a full-board basis that included lodging, meals, laundry, and other essential services.

“Without prior preparation, we established an effective infrastructure for the evacuation of residents in times of emergency,” said Minister Katz. “This initiative not only strengthened our home front but also prevented the collapse of the hotel sector. The subsistence grants we introduced saved the State 7 billion shekels. We remain committed to preserving and rebuilding tourism, which is a key driver of our economy and public diplomacy.”

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To support evacuees who preferred alternatives to hotel stays, the Ministry rolled out a daily subsistence grant—ILS 200 per adult and ILS 100 per child—amounting to roughly ILS 18,000 monthly for a family of four. A targeted information campaign later helped transition many from hotel stays to this community-based support, generating additional savings for the State Treasury.

The initiative safeguarded thousands of jobs in Israel’s hospitality sector, heavily impacted by the pause in tourism during the conflict. The emergency center also handled nearly 13,000 disputes related to eligibility and hotel stays, along with thousands of requests for family reunifications, pet accommodations, and special cases like weekend stays for soldiers.

Drawing on insights from the 628 days of operation, the Ministry is now preparing a dedicated emergency evacuation protocol to guide future responses. Even as the operations center winds down, the Ministry will continue addressing remaining administrative issues, while encouraging international visitors to support Israel’s tourism revival.


Parliament Panel Reviews Aviation Safety After Air India AI-171 Crash

Parliament Panel Reviews Aviation Safety After Air India AI-171 Crash

By Nishang Narayan

Published on July 10, 2025

The Parliamentary Standing Committee on Transport, Tourism and Culture has convened a crucial meeting at Parliament House Annexe to conduct an overall review of civil aviation safety in India. This meeting comes in the wake of the tragic Air India Flight AI-171 crash in Ahmedabad that claimed 241 lives, including former Gujarat Chief Minister Vijay Rupani.

Committee Chairman Sanjay Kumar Jha is leading the discussions, which include Air India CEO Campbell Wilson and top officials from the Ministry of Civil Aviation, the Directorate General of Civil Aviation (DGCA), and the Airports Authority of India (AAI).

On Tuesday, members of Parliament's Public Accounts Committee (PAC) also raised serious concerns over aviation safety standards, as well as the sudden spike in flight fares from Srinagar to other cities following the recent terror attack in Pahalgam.

The fatal incident occurred on June 12 when Air India Flight AI-171, a Boeing 787-8 Dreamliner, crashed shortly after takeoff from Ahmedabad's Sardar Vallabhbhai Patel International Airport. The aircraft struck the BJ Medical College hostel building, resulting in 241 fatalities out of the 242 people on board.

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The Aircraft Accident Investigation Bureau (AAIB) has submitted its preliminary report to the Ministry of Civil Aviation and other authorities. Notably, this investigation marks the first time India has domestically decoded black box data. Officials confirmed that the crash protection module (CPM) from one of the black boxes was retrieved and successfully downloaded at the AAIB Lab in Delhi on June 25, using an identical unit known as a "golden chassis" to verify the data.

The investigation is being led by the AAIB Director General and involves a multidisciplinary team, including experts from the Indian Air Force, Hindustan Aeronautics Limited (HAL), aviation medicine, air traffic control, and the US-based National Transportation Safety Board (NTSB), the designated body from the aircraft’s country of design.

Meanwhile, efforts to identify victims have concluded. Civil Hospital Medical Superintendent Rakesh Joshi confirmed, “A total of 254 DNA matches were done, all identified and handed over. Six were identified through facial recognition.” All 260 bodies from the crash have now been returned to their families.

As scrutiny intensifies, the Parliament panel’s review aims to ensure that aviation safety protocols are thoroughly examined to prevent such tragedies in the future, while also addressing concerns around fare hikes in sensitive situations.


The Leela Unveils North and South Palace Trails to Promote Cultural Travel in India

The Leela Unveils North and South Palace Trails to Promote Cultural Travel in India

By Nishang Narayan

Published on July 9, 2025

The Leela Palaces, Hotels and Resorts has launched two bespoke itineraries—The Leela Palace Trail – North India and The Leela Palace Trail – South India—under its expanding Palace Trail initiative. These curated experiences aim to deepen inbound travellers’ engagement with India’s heritage, culture, and diverse landscapes by combining luxury hospitality with authentic local encounters across destinations like Delhi, Jaipur, Udaipur, Chennai, Kovalam, and Hyderabad.

The North India trail reimagines the classic Golden Triangle circuit—covering New Delhi, Jaipur, and Udaipur—with The Leela’s signature touch of intuitive luxury. This itinerary is ideal for first-time visitors seeking to explore India’s most iconic landmarks and rich historical settings, while enjoying stays at The Leela Palace New Delhi, The Leela Palace Jaipur, and The Leela Palace Udaipur. Guests can expect a blend of heritage tours, local traditions, and immersive cultural experiences woven seamlessly into their journey.

On the other hand, the South India trail caters to travellers looking for a slower, more introspective exploration. Winding through Bengaluru, Chennai, Kovalam, Ashtamudi, and Hyderabad, this itinerary focuses on wellness, temple trails, traditional cuisine, and coastal landscapes. Properties like The Leela Palace Chennai, The Leela Kovalam, and The Leela Ashtamudi serve as luxurious bases for discovering the vibrant regional diversity and cultural depth of the South.

Commenting on the launch, Anuraag Bhatnagar, Chief Executive Officer of The Leela Palaces, Hotels and Resorts, said, “The introduction of the North and South Palace Trails reflects our commitment to crafting immersive journeys that are rooted in Indian heritage and delivered with intuitive luxury. While the North Trail is perfect for first-time visitors to India who wish to experience its most iconic landmarks, the South Trail invites a slower, more introspective exploration through wellness, cuisine, and culture.”

Both itineraries are customisable, featuring guided art walks, curated excursions, and locally inspired activities that resonate with today’s global travellers seeking meaningful, narrative-driven experiences. With this initiative, The Leela continues to position itself at the forefront of luxury hospitality that seamlessly merges cultural authenticity with sophisticated travel.

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