Pre-Budget 2026 Expectations: Tourism & Hospitality Push for Structural Reforms to Sustain Growth

Pre-Budget 2026 Expectations: Tourism & Hospitality Push for Structural Reforms to Sustain Growth

By Author

Published on January 25, 2026

The tourism and hospitality sector currently faces a critical moment as India prepares for its Union Budget 2026. The sector which emerged as a major force for economic recovery and job creation and regional development now seeks permanent changes through structural policy reforms instead of temporary benefits. Industry leaders believe that with the right fiscal and regulatory support, tourism and hospitality can evolve from being viewed purely as a service segment to becoming a key infrastructure and growth driver for the country.

Sharing his expectations, Dinesh Yadav, Founder and MD of Fine Acers, highlights the urgent need for comprehensive policy support to match the sector’s rapid expansion, “As we approach Budget 2026, the hospitality sector is looking for structural policy support that reflects its growing economic contribution and long-term capital intensity. The industry is experiencing a significant expansion, with the projected CAGR being about 10-11%. This growth is mainly owing to the attraction of domestic tourists, the MICE sector and the swift advent of experiential travel in Tier II and III destinations. On the other hand, if the industry wants to keep the same pace, it needs a complete policy overhaul and not just short-term remedies.

One of the long-awaited measures is to give the whole hospitality industry, rather than just selected parts, the status of an infrastructure. This move would pave the way for the access of long-term and low-cost funding which is vital for the completion of the projects that have long gestation periods. Besides this, the GST reform especially concerning room rates and bundled hospitality services where the high tax rates still pose a threat to price competitiveness and thus indirectly to occupancy-led growth, is peremptory.

New forms of ownership and financing, like the sale-leaseback model, should be more clearly recognized in terms of policy. These models help developers recycle capital, improve balance sheets and attract institutional participation. Simplifying approvals granting single-window clearances and standardizing compliance procedures across states, which would lead to a significant reduction in the time and cost involved in project execution. Even more, the tourism sector, which has been the main recipient of Budget 2026, can really reposition hospitality not only as a service industry but also as one of the main infrastructure drivers of India's growth story." Yadav Added

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Govind Gaur, CEO, WanderOn

Echoing similar sentiments from the travel segment, Govind Gaur, CEO, WanderOn, underscores the importance of domestic tourism and infrastructure-led growth, “As we look ahead to the upcoming Union Budget 2026, the travel and tourism sector hopes for continued emphasis on growth, infrastructure and strengthening of consumer confidence. Domestic tourism can become the backbone of India’s tourism landscape, if the government focuses more towards increased infrastructural connectivity, expansion of airports and improving rail travel.

The industry is also looking forward to an ‘Industry status’ to travel and tourism, which would enable easier access to credit and lower financing costs. If these measures are addressed in Budget 2026, travel would become more affordable for consumers, enhancing margins and boosting the circular economy.”

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Dr Vikas Katoch, Founder and CEO, Adotrip

From a digital travel and destination discovery perspective, Dr Vikas Katoch, Founder and CEO, Adotrip, stresses the need for GST rationalisation, easier financing, and continued support for sustainable tourism initiatives, “As India’s travel industry continues with its robust recovery, we expect budget 2026 to rationalize GST for the sector. It is also important to make compliance more seamless, improve credit access so that financing can become easier. Addressing these will benefit both consumers and businesses, as travel and hospitality will become more affordable for them, businesses can get a change to innovate and grow and there will be healthy competition in the market.

The government’s further support for sustainable tourism, heritage circuits, and domestic travel promotion will be critical in diversifying demand across regions. The government has already demonstrated strong intent through sustained investments in infrastructure, destination branding, and tourism-led regional development. Building on this momentum in Budget 2026 can help India unlock significantly higher economic value, employment generation, and inclusive growth through tourism.”

Budget 2026 gives India a chance to transform its tourism and hospitality industry according to the expert opinion of industry professionals. The sector seeks reforms which will create sustainable growth through industry recognition and infrastructure status and simplified GST rules and better financing options and support for new ownership models. The upcoming budget needs strategic policy changes because domestic tourism is increasing and international interest in India is growing, which will establish tourism and hospitality as a key driver of India's economic and job growth.


Papa Johns India Celebrates Father’s Day with Interactive Pizza-Making Experience

Papa Johns India Celebrates Father’s Day with Interactive Pizza-Making Experience

By Hariharan U

Published on June 21, 2026

Papa Johns India marked Father’s Day with a unique and interactive celebration, hosting a special pizza-making experience for fathers and their children at its Hennur and Kasturi Nagar outlets in Bengaluru on June 21, 2026.

Designed to encourage meaningful family bonding, the event brought together registered father-child duos for a hands-on culinary session where participants created their own pizzas under the guidance of Papa Johns chefs. The initiative aimed to transform a traditional dining experience into an engaging activity centred around togetherness and shared memories.

During the event, participants wore branded aprons and caps while learning the art of pizza-making from scratch. The experience also featured Father’s Day-themed games, instant photography sessions, Polaroid keepsakes, and interactive activities designed to make the celebration memorable for families.

Commenting on the initiative, Prashant Mehta, Director of Papa Johns India, said the brand views Father’s Day as an opportunity to celebrate family connections and create meaningful experiences beyond dining. He noted that the event was designed to bring families together through teamwork, creativity, and shared moments in the kitchen.

The sessions concluded with pizza tasting, trivia activities, and group photographs, allowing participants to enjoy the creations they made together.

Through this experience-led activation, Papa Johns India continues to strengthen customer engagement while showcasing the craftsmanship, quality ingredients, and preparation techniques that define its pizzas. The initiative reflects the brand’s growing focus on creating memorable in-store experiences that connect customers with the food and the people they share it with.

Operated in India by PJP Foods India Private Limited under the Ambrosia QSR platform, Papa Johns India continues to expand its presence through dine-in, takeaway, and delivery formats while staying true to its global promise of “Better Ingredients. Better Pizza.”


Summit Hotels Begins FY2026-27 with Nearly 40% Growth, Driven by Sikkim and Darjeeling Demand

Summit Hotels Begins FY2026-27 with Nearly 40% Growth, Driven by Sikkim and Darjeeling Demand

By Manu Vardhan Kannan

Published on June 14, 2026

Summit Hotels & Resorts has started FY2026-27 on a strong note, reporting nearly 40% growth in business during April and May. The company attributes the performance to continued demand for leisure travel in the Eastern Himalayas and the growing preference among travellers for established regional hospitality brands.

During the first two months of the financial year, the hospitality group sold more than 37,000 room nights, with occupancy across its portfolio reaching 78.9%. Average room rates also crossed ₹6,000, highlighting stronger pricing power across several key destinations.

The growth comes despite a temporary slowdown in travel activity in parts of eastern India during the West Bengal Assembly election period. According to the company, destinations across Sikkim and the Darjeeling Hills were the strongest contributors to performance, supported by repeat guests and rising demand for premium mountain getaways.

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Commenting on the performance, Sumit Mitruka, CEO, Summit Hotels & Resorts, said, "We entered the year expecting healthy demand, but the pace of bookings has been stronger than anticipated. What stands out is not just the occupancy but the ability of travellers to continue choosing these destinations despite temporary disruptions. The appetite for experiential leisure travel remains strong, and we are seeing that translate into both room revenue and higher spending within our hotels."

Alongside room revenues, the company also reported healthy growth in food and beverage sales during the period. Guest review scores remained among the highest across its operating markets, reflecting strong customer satisfaction levels.

Building on this momentum, Summit Hotels is now expanding its business model beyond its owned and managed properties in the Eastern Himalayas. The company is actively seeking partnerships with independent hotels, boutique resorts, heritage properties, wildlife lodges, and spiritual retreat destinations across India.

The initiative is designed for hotel owners looking to benefit from organised distribution channels and professional revenue management while retaining ownership and operational control of their properties.

Unlike conventional affiliation models that often require significant upfront investments, Summit's partnership approach focuses on shared growth. Partner properties can maintain their individual identity while gaining access to the company's central reservation system, revenue management expertise, digital marketing support, technology platforms, and hospitality manpower network.

Having completed 18 years in the hospitality industry, Summit believes significant opportunities exist within India's large independent hotel sector, where many properties have strong local appeal but limited access to organised brand support and distribution systems.

With booking momentum continuing into June and advance reservations already nearing last year's levels, the company remains optimistic about sustained demand across leisure and destination travel markets in the coming quarters.


Suba Hotels Ltd Reports Record ₹115.89 Cr Revenue in FY26, Expands to 100+ Hotels

Suba Hotels Ltd Reports Record ₹115.89 Cr Revenue in FY26, Expands to 100+ Hotels

By Hariharan U

Published on June 12, 2026

Suba Hotels Limited (NSE – SME: SUBAHOTELS) has announced its audited financial results for the year ended March 31, 2026, reporting its strongest-ever annual performance alongside significant expansion across its hotel portfolio.

The company’s total revenue rose to ₹115.89 crore in FY26, marking a 45% year-on-year growth. EBITDA increased by 13% to ₹26.82 crore, while Profit After Tax (PAT) stood at ₹18.01 crore, reflecting a 19% rise compared to FY25.

Commenting on the performance, Managing Director Mansur Mehta said FY26 has been a landmark year for the company, driven by strong execution and expansion across markets. Suba Hotels expanded its presence to over 102 operational hotels, 4,660+ keys, and 73 destinations during the year.

He highlighted that one of the company’s key strengths lies in its ability to operate across all five hospitality business models management contracts, revenue sharing, franchising, asset ownership, and hybrid structures, making Suba Hotels one of the few hospitality players in India with such a diversified operational framework.

This flexibility allows us to partner with hotel owners effectively and accelerate expansion across segments,” he said.

CEO Mubeen Mehta noted that the scale achieved in FY26 reflects the strength of the company’s operating platform and execution capabilities. He added that revenue growth was supported by network expansion and improved business volumes across brands.

He also pointed out that EBITDA and PAT margins were impacted due to changes in the GST framework, which led to the loss of input tax credit benefits on certain operating expenses, increasing the overall cost base.

Looking ahead, the company plans to continue expanding through asset-light models, improving operational efficiency, and strengthening its presence in high-growth markets. With a strong pipeline and over 100 hotels already operational, Suba Hotels remains confident of sustaining its growth trajectory.

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