Union Budget 2025: A Game-Changer for India's Hospitality Sector

Union Budget 2025: A Game-Changer for India's Hospitality Sector

By Nishang Narayan

Published on February 4, 2025

The Union Budget 2025 has set the stage for significant transformation in India's hospitality and tourism sector. With a strong emphasis on infrastructure, connectivity, and investment-driven growth, industry leaders believe these measures will bring long-term benefits, attracting both domestic and international travelers.

One of the key highlights is the modified Udaan scheme, which will introduce 120 new destinations, strengthening regional connectivity and boosting tourism in emerging hotspots. Hotels, resorts, and homestays in lesser-explored regions are expected to see an increase in footfall, fostering further development and investment.

Ambika Saxena, CEO of TWH Hospitality, emphasized how the expanded Udaan scheme will open doors for new destinations, benefiting hotels and resorts. She stated:

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"This year, the government has presented a well-balanced and growth-oriented budget, specifically supporting the tourism and hospitality sectors. The modified Udaan scheme will open doors for the hospitality sector by bringing new tourist destinations into the spotlight. Hotels, resorts, and homestays in unexplored regions will see a surge in demand, encouraging further investment and development. With the government's push for connectivity and including new 120 destinations, we expect a stronger pipeline in the hospitality sector, catering to both business and leisure travelers in emerging tourism hotspots."

The expansion of tourism-friendly policies is another key highlight, with a focus on domestic and spiritual tourism. Measures such as streamlined e-visa facilities, visa fee waivers, and performance-linked incentives for states will improve tourist amenities and cleanliness, ultimately enhancing the travel experience.

Yogesh Mudras, Managing Director of Informa Markets in India, sees this as a landmark initiative for India's tourism industry:

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"The Union Budget 2025 presented a progressive roadmap that prioritizes infrastructure, economic growth, and regional connectivity. The government's continued emphasis on regional development and tourism-friendly policies will have a far-reaching impact on multiple sectors, including travel and tourism. The modified Udaan scheme, in particular, is a landmark initiative that will strengthen India's position as a global tourism hub. The scheme has already benefited 1.5 crore middle-class travelers, and the expansion of the scheme to include 120 new destinations is a game-changer for regional connectivity. With increased accessibility, we anticipate a surge in domestic tourism and business travel, providing a major boost to the tourism industry."

The government has also placed a strong focus on homestays and small-scale tourism businesses by introducing Mudra loans to empower local entrepreneurs. This move is expected to encourage more people to invest in the hospitality space, promoting sustainable and community-driven tourism.

Pranav Dangi, Founder and CEO of The Hosteller, believes these steps will help India emerge as a top global destination:

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"The Union Budget 2025 presents a robust vision for India's tourism sector. The emphasis on infrastructure development, support for homestays through Mudra loans, and the inclusion of hotels in the harmonized scheme will strengthen the industry's foundation. Additionally, developing 50 tourist destinations will definitely enhance India's position as a global travel hub. Being in the travel and hospitality space for more than a decade, I see these initiatives as the required push for accessibility, affordability, and innovation in travel, setting the stage for India to emerge as a top global destination."

Another critical aspect of the budget is skill development and workforce training in hospitality. The government aims to provide intensive training programs through Institutes of Hospitality Management, ensuring world-class education and better employment opportunities in the sector.

Saurabh Gahoi, Senior Vice President of Ramee Group of Hotels, sees this as a transformative step for the industry:

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"The Union Budget announcement by FM Sitharaman marks a significant milestone, driving growth while empowering citizens, particularly the middle class. A notable highlight is the emphasis on the travel and hospitality industry, which promises transformative changes.
Key measures include enhancing connectivity to major tourist destinations, offering performance-linked incentives to states for better destination management, and improving tourist amenities and cleanliness. Additionally, the introduction of streamlined e-visa facilities and visa-fee waivers for select groups is set to boost inbound travel.
Domestic and spiritual tourism is set to flourish, supported by revised income tax reforms that encourage travel within the country. A major boost comes from intensive skill-development programs, particularly in Institutes of Hospitality Management, ensuring world-class training for the youth. By prioritizing individual growth, these initiatives will lead to superior customer experiences, elevating India's hospitality standards globally.
This budget serves as a catalyst for long-term industry growth, creating new business opportunities and employment. With a focus on infrastructure, workforce development, and seamless travel experiences, FM Sitharaman's budget is a game-changer, strengthening India's position as a premier travel and hospitality hub."

Conclusion

With infrastructure development, connectivity expansion, and workforce training at its core, the Union Budget 2025 is a major step forward for India's hospitality and tourism industry. By enhancing accessibility, supporting small businesses, and improving the ease of travel, the government has laid the foundation for a vibrant, competitive, and globally recognized tourism sector. These policies are expected to create new business opportunities, attract investments, and establish India as a premier travel destination in the years to come.


Apeejay Surrendra Park Hotels Reports Rs 13 Crore Net Profit in Q1 FY26

Apeejay Surrendra Park Hotels Reports Rs 13 Crore Net Profit in Q1 FY26

By Manu Vardhan Kannan

Published on August 18, 2025

Apeejay Surrendra Park Hotels Limited (ASPHL) announced its financial results for Q1 FY26, recording a net profit of Rs 13 crore. Revenue from operations stood at Rs 154 crore, a 14% increase year-on-year, while operating EBITDA grew 16% YoY to Rs 45 crore. The company maintained an industry-leading occupancy of 92%, reaffirming its leadership in the hospitality sector.

ASPHL’s growth is fueled by expansion into Tier 2 and Tier 3 markets. The company recently signed an MoU to acquire and manage four leisure properties in Goa, Manali, Shimla, and Dharamshala, adding 138 rooms under its brand. These steps align with ASPHL’s strategy to broaden its presence in high-potential tourism destinations and double its key count to 5,750 over the next five years.

Flurys, ASPHL’s iconic bakery and confectionery brand, now operates 102 outlets nationwide, reflecting the company’s focus on expanding its market presence while integrating modern amenities with rich cultural heritage.

Commenting on the performance, Vijay Dewan, Managing Director, Apeejay Surrendra Park Hotels, said,

"We have delivered an extraordinary and best-ever Q1, setting a strong momentum for the year ahead. With topline growth of 14% and EBITDA growth of 16%, we recorded India’s highest occupancy of 92% and maintained leadership in RevPAR in the upper-upscale segment. ARR improved by 13% and RevPAR increased by 12%. With nearly 600 new rooms added, including a 41% rise in our asset-light model, and nationwide Flurys rollout, we are poised to scale faster, enhance margins, and deliver exceptional shareholder value."

ASPHL’s strong performance in Q1 FY26 underscores its strategic focus on market expansion, operational excellence, and premium guest experiences.


Marriott Announces Dividend and Expands Share Buyback Plan

Marriott Announces Dividend and Expands Share Buyback Plan

By Manu Vardhan Kannan

Published on August 10, 2025

Marriott International, Inc. has declared a quarterly cash dividend of 67 cents per share on its common stock, reaffirming its commitment to delivering shareholder value. The dividend will be paid on September 30, 2025, to shareholders who are on record as of August 21, 2025.

Alongside the dividend announcement, the hospitality giant also revealed an expansion of its share repurchase program. The board of directors has authorized the repurchase of an additional 25 million shares of its Class A common stock. This comes in addition to the approximately 7.4 million shares that were still available under previous authorizations as of July 30, 2025.

Marriott has already bought back 6.4 million shares this year, amounting to $1.7 billion. These moves reflect the company’s continued confidence in its financial stability and long-term performance, aiming to strengthen shareholder value through strategic capital allocation.


Chennai Postal Services Still Disrupted: Experts Call for Alternative Systems Amid Software Transition

Chennai Postal Services Still Disrupted: Experts Call for Alternative Systems Amid Software Transition

By Author

Published on August 4, 2025

In what was intended to be a smooth digital transformation, postal services across the Chennai Circle continue to remain disrupted even days after a scheduled upgrade to India Post's new IT 2.0 system. The software transition—part of a broader effort to modernize the nation’s postal network—was implemented on August 2nd and 4th across Chennai North and South divisions. However, officials have now confirmed that technical issues still persist, leaving customers and businesses grappling with delayed or inaccessible services.

Key services such as Speed Post, registered mail, parcel bookings, and money orders have either been significantly slowed or paused altogether in many branches. Despite expectations that systems would normalize post-upgrade, the rollout of the Advanced Postal Technology (APT) system has proven more complex than anticipated.

“We are still working on stabilizing the system. There have been unforeseen glitches post-upgrade, and our teams are actively resolving them,” said a senior postal official who requested anonymity.

The disruption has raised concerns across industries—including the hospitality sector—where timely document dispatch, license renewals, vendor payments, and customer correspondence are crucial to daily operations.

Experts and industry stakeholders are now calling on India Post to introduce alternative operational strategies or backup mechanisms during such large-scale transitions.

“In a digital age where seamless service is non-negotiable, a complete blackout due to a software update is avoidable. A fallback process, whether manual or cloud-based, should be in place to ensure continuity,” said a Chennai-based hospitality consultant.

The hospitality industry relies heavily on postal services for legal documentation, international communication, and procurement logistics. The ongoing delays have caused bottlenecks not just in operations but also in customer experience delivery.

As authorities continue to work toward a resolution, the broader question remains: Should India’s essential public infrastructure be this vulnerable to a single system upgrade? The answer may lie in future-proofing core services with hybrid digital models that include disaster recovery plans and parallel systems.


Hospitalitynews.in will continue to track updates as the situation evolves.

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