With the Union Budget 2026 scheduled to be presented on February 1, hospitality industry leaders have outlined policy priorities they say are critical to sustaining growth and improving the sector’s long-term competitiveness.
Managing Director and COO of South Asia, Radisson Hotel Group, said tourism and hospitality are at a “critical inflection point,” contributing nearly 7–8% to India’s GDP, with demand strengthening across domestic travel, religious tourism, weddings, MICE and medical travel.
He said sustaining this momentum requires policy frameworks that recognise hospitality as productive economic infrastructure.
“Granting infrastructure status to hospitality would unlock long-term financing, improve capital efficiency and accelerate quality development beyond metros,” he said.
He added that continued investment in connectivity aligned with tourism clusters, GST rationalisation and restoration of input tax credit would improve affordability and competitiveness.
He also highlighted the need for targeted incentives, stronger global promotion, support for sustainable operations and hospitality-focused skilling initiatives.
Executive Director of Chalet Hotels Limited said the sector approaches the Budget with “measured optimism” but continues to face structural constraints.
“The hospitality sector has created 46.5 million jobs and is projected to support 64 million by 2035, yet it still lacks comprehensive infrastructure status,” he said.
He noted that while the Union Budget 2025–26 extended infrastructure benefits to hotels in 50 select destinations, broader recognition is needed to enable softer financing, lower utility tariffs and rationalised property taxes.
He also called for stronger Centre–state coordination, stating that bringing tourism into the concurrent list could address fragmented policymaking and support holistic destination development.
Hotel Association of India (HAI) President and Chairman – South Asia, Radisson Hotel Group urged policymakers to prioritise sector-specific reforms in the February 1 Budget.
He said hotels should receive due recognition for their contribution to GDP, employment and foreign exchange earnings. Kachru called for full infrastructure status for hotels, simplification of approvals and clearances through a single-window mechanism, reinstatement of incentives linked to foreign exchange earnings and higher depreciation for hotel assets.
Director and CEO of Clarissa Group, said hospitality founders are seeking long-term, growth-oriented support amid rising operating costs and compliance burdens.
“Rationalised GST structures, easier access to affordable credit and incentives for renovation and capacity expansion are critical for sustaining growth,” he said.
Dilwali also highlighted the need for stronger support for skill development, workforce formalisation and continued public investment in tourism infrastructure and last-mile connectivity to expand demand beyond major cities.
The Union Budget 2026, to be presented on February 1, will be Finance Minister Nirmala Sitharaman’s ninth consecutive Budget.
