There’s Nothing in the Budget Announcement for the Tourism & Hospitality Sector
As Usual….
There’s Nothing in the Budget Announcement for the Tourism & Hospitality Sector
A sector which contributes about 6% to the country’s overall GDP and about 8.3% of total employment, generating about 35 million jobs in 2022–23, with a projection to increase to 53 million by 2029, does not have an industry status till now.
This is disappointing for all of us in the tourism and hospitality industry.
Here’s what we expected for growth:
1. Infrastructure Status for the Hospitality Industry: Granting infrastructure status could facilitate easier access to funding and lower interest rates, which would support the development and expansion of the sector.
2. Increased Marketing and Publicity Budgets: Enhanced marketing and publicity efforts are crucial for boosting inbound tourism. Promoting the country’s attractions more aggressively to international travelers would increase tourist inflow.
3. Reduction in GST Rates on Travel: Lowering the Goods and Services Tax (GST) on travel-related services would make travel more affordable, potentially leading to increased domestic and international tourism.
4. Input GST Credit Facility for Restaurants: Currently, GST is being paid on rent, transportation, online aggregators’ fees, marketing agency fees, etc. Providing input GST credit would greatly benefit restaurants by reducing their overall tax burden.
While the Union Budget aims to boost infrastructure, the tourism and hospitality sector continues to be left wanting more. For an industry so vital to our economy and employment, it’s crucial that these changes be made to foster growth and sustainability.
#UnionBudget #HospitalityIndustry #Tourism #Budget2024 #GSTReduction #EmploymentGrowth
