Union Budget 2024: FM's vision leaves hospitality sector wanting more

Finance Minister Nirmala Sitharaman unveiled the Union Budget for the fiscal year 202425 on TuesdayWhile the budget has been noted for its focus on employment generation agricultural development infrastructure development and support for spiritual and cultural tourism it has received a mixed reception from the hospitality and tourism sectorsPradeep Shetty President of the Federation of Hotel and Restaurant Associations of India FHRAI expressed his concerns about the budgets impact on the hospitality industry Shetty highlighted the sectors high expectations for substantial reforms and support in line with the governments vision for a VIkasit Bharat by 2047 reported ANIAs per the ANI report Shetty noted that despite these expectations the budget failed to address some critical demands of the tourism and hospitality sectors such as GST rationalization the granting of infrastructure status and essential policy reformsThe hospitality sector has been pinning high hopes on the Union Budget for 202425 presented by Smt Nirmala Sitharaman today on the backdrop of Indian governments stated vision of Vikasit Bharat by 2047 and the critical role the tourism industry holds in achieving it However there is nothing spectacular in the budget to bring structural changes to address the fundamental challenges it faces in a competitive world order and to accelerate the growth of the sector to be a USD 3 trillion economy by 2047 Shetty said according to ANISome key demands of tourism and hospitality to revitalize the sector such as GST rationalization granting of infrastructure status ease of doing business and policy reforms have not been considered in the budget once again given the wellaccepted multiplier effect of tourism on employment and the economy he addedDespite these setbacks Shetty acknowledged some positive aspects of the budget that seem to be beneficial for the sector It included the governments commitment to infrastructure development employment and skill development and religious tourism reported ANIThe focus on enhancing spiritual and cultural landmarks including the Vishnupath temple in Gaya and the Mahabodhi temple in Bodhgaya is praised for its potential to offer significant economic and social benefits reported ANIShetty said The governments proactive perspective on enhancing tourism particularly through the development of spiritual and cultural landmarks like the Vishnupath temple in Gaya and the Mahabodhi temple in Bodhgaya is a commendable move that promises substantial economic and social benefits according to the ANI reportHe added Furthermore the development plans for Rajgir and Nalanda represent a significant investment in promoting Indias ancient historical and educational legacy The governments commitment to supporting tourism in Odisha will not only highlight Odishas unique attractions but also encourage sustainable practices that preserve the states ecological balance and cultural heritageThe emphasis on tourism in Odisha will provide assistance for the development of the states scenic beauty temples monuments craftsmanship wildlife sanctuaries natural landscapes and beachesThe initiatives aimed at improving youth employment skill development and job creation are welcomed particularly as the hospitality sector grapples with a shortage of skilled workersThe budgets broader commitment to making India a global tourist destination will also create jobs stimulate investments and unlock economic opportunities for other sectors as read in FMs Budget speechThe development of spiritual sites and the promotion of cruise and beach tourism are expected to attract both domestic and international touristsAs per the ANI report Rajesh Magow cofounder and group CEO of MakeMyTrip also shared his perspective on the budget He commended the governments continued emphasis on infrastructure development noting that enhanced road infrastructure would support the travel and tourism sectorsHe said The governments continued emphasis on infrastructure development is commendable Enhanced road infrastructure will bolster the travel and tourism sectors We also welcome the initiatives to develop iconic spiritual and cultural sites into worldclass tourist hotspots reported ANIHe added The decision to reduce the TDS rate on ecommerce operators to 01 per cent is a welcome move Furthermore the provision of credit for TCS against income tax under Income from Salaries is logical and will provide muchdesired relief to taxpayers who travel internationallyWith inputs from ANI