And it is the time of the year again! We are ready to embrace the new union budget. Considering the diverse landscape of India, the nation attracts tourism from all over the world. Thus, it goes without saying that with the upcoming budget 2025, there are several expectations attached to it. Industry experts have openly shared what are they looking forward to, what measures would they want the Government to incorporate, and more.
“The travel and hospitality industry expects the forthcoming budget to introduce measures for its growth. We expect the government to strengthen domestic tourism initiatives and increase budgetary allocation to promote tourism, especially in emerging destinations. Additionally, policies to attract international tourists and support skill development in hospitality will strengthen India’s position as a global travel destination. Such measures would boost employment, attract investments, and contribute significantly to the country’s GDP,” shares the CEO of TWH Hospitality.
Further, the co-founder and CEO, IntrCity SmartBus discusses his wishlist and says, “As we approach the 2025 Union Budget, we see tremendous opportunity to transform India’s intercity mobility landscape. The private bus sector remains the backbone of long-distance travel in our rapidly urbanizing nation. While we applaud the government’s remarkable progress in highway infrastructure, it’s time to take the next bold step in revolutionizing public transport.”
“From our experience of serving millions of passengers, we strongly believe that developing airport-style centralized bus terminals along national highways is crucial. Modern facilities with secure boarding zones, clean restrooms, and vibrant food courts are amenities that our passengers deserve. This investment would be transformative, not just for operators like us, but in encouraging more Indians to choose shared mobility over private vehicles,” he adds.
He further elaborates that their vision includes game-changing opportunities in integrating commercial cargo with passenger transport. “With the sophisticated storage systems in modern buses, this dual-use approach could create new revenue streams while supporting India’s sustainability goals. We’re already seeing successful models of this globally,” he says.
“The upcoming budget presents a golden opportunity to position India as a global leader in sustainable transport. By making these strategic investments now, we can create a smarter, greener mobility ecosystem that serves all Indians effectively. The private bus sector is ready to partner with the government in this journey toward world-class intercity mobility,” concluded by him.
Meanwhile, the CEO of Tourism and Hospitality Skill Council elaborates how the sector will be benefiting from the upcoming budget. He shares, “Reduced GST rates for hospitality and travel services, infrastructure upgrades for tourism hotspots, and financial support for sustainable hotel and travel projects can create an ecosystem for robust industry growth. For the travel sector specifically, enhanced connectivity through investments in transport infrastructure—such as better roads, railways, and regional airports—will significantly boost accessibility to lesser-explored destinations. Additionally, increased allocation for skill development, apprenticeships, and digital transformation will empower the workforce, ensuring the industry is prepared for future challenges and opportunities.”
“While significant work is already underway in these areas, there is still a road ahead to fully unlock the potential of this dynamic industry,” concludes by him.
Further, with the ambition of creating a $1 trillion tourism economy by 2047, the Managing Director and Chief Executive Officer, Thomas Cook (India) Ltd shares, “The Travel & Tourism sector continues to be a vital contributor to India’s economy, with a 9.1% contribution to GDP (2024) and its significant role in employment generation and foreign exchange receipts.”
He adds. “As we look ahead to the Union Budget 2025, we expect key measures that will support sustainable growth and infrastructure development, which are crucial to India’s ambition of becoming a $1 trillion tourism economy by 2047:
Infrastructure Development:
– Investment in transport infrastructure must remain a priority, particularly in underdeveloped regions and unexplored destinations. Strengthening air, rail, and road connectivity, as well as expanding cruise and river tourism, is essential to unlock India’s full potential as a travel destination. Focused development on religious circuits and underleveraged destinations like the Northeast and Lakshadweep will also drive increased tourism
– Incentives for eco-friendly tourism practices are crucial to align India’s tourism sector with global sustainability standards. Tax rebates for green initiatives and eco-conscious projects will ensure the industry is well-positioned for sustainable growth.
Tax Reforms:
– Rationalize GST rates for hospitality services, particularly merging the 18% GST for hotels with room rates above ₹7,500 into a lower category
– Bring all cross-border individual credit card spends under the ambit of TCS”
Echoing the sentiment, the Managing Director & CEO, SOTC Travel Limited adds another layer by speaking about prioritizing regional connectivity.
“SOTC Travel believes that the Union Budget 2025 presents a unique opportunity to accelerate the growth of India’s Travel & Tourism sector, which continues to be a cornerstone of the economy, creating employment and driving GDP growth. We hope that the Union Budget will prioritize regional connectivity through expanded initiatives to improve access to remote tourism areas. This expansion will foster new tourism circuits and bring meaningful economic development to underexplored destinations.
Furthermore, we urge the government to support niche tourism segments such as wellness, adventure, and heritage tourism, which can transform India into a year-round travel destination. On the tax front, we reiterate our long-standing request for the simplification of GST, a reduction of the TCS rate, and the elimination of the slab-wise deduction for outbound travel packages, this will enhance the competitiveness of Indian tourism on the global stage and simplify compliance,” he shares.
Last but not least, the Co-Founder & CEO, Sciative Solutions shares her optimistic view. She shares, “As a SaaS company driving dynamic pricing and revenue growth for the Indian travel and hospitality industry, I am optimistic about Budget 2025 and its potential to address critical challenges while fostering growth. Key expectations include enhanced connectivity through investments in air, rail, and road infrastructure, particularly to improve access to tier-2 and tier-3 cities via new airports, railway lines, and highways.”
“The hospitality sector is hopeful for a reduction in GST rates on hotel rooms priced above ₹7,500, which would stimulate domestic and international tourism. Whereas, for intercity passenger mobility, a standardized national regulatory framework is essential to replace the fragmented state-specific rules, promoting fair competition and creating a level playing field,” she explains
“Additionally, I strongly believe that there should be an emphasis on electric mobility, with subsidies, tax incentives, and infrastructure development for electric buses, would support a sustainable transition to greener fleets. These measures would not only address current challenges but also pave the way for long-term growth and sustainability in the travel and hospitality industry,” concludes by her.
Source #TOI
