KB Kachru, Chairman Emeritus and Principal Advisor, Radisson Hotel Group, South Asia, and President of HAI, summarised the budget: Continued focus on infrastructural development, fiscal prudence, and consolidation. It also accepts tourism as an engine of growth for the economy. Although there is an emphasis on spiritual tourism, no policy changes have been implemented to accelerate growth.
He elaborated, “Tourism and hospitality play a crucial role in the growth of the Indian economy. The continued focus on government spending on infrastructure development augurs well for the sector. Improved infrastructure would translate into better connectivity, which would be beneficial to the promotion of tourism. The development of the eastern region, temple corridors in Gaya and Bodhgaya, and the identification of Nalanda as a key tourism site continue to demonstrate the government’s intent to utilise the potential of tourism. Regrettably, however, there has been no policy announcement to facilitate the development of hotels and the promotion of inbound tourism. The announcement of GST simplification and a comprehensive review of the Income Tax Act provides some hope for the sector that has been seeking rationalisation of taxes. The benefits to individuals from taxation will augment their spending power. The focus on skilling and incentivizing employers to create jobs are other positives that will benefit all sectors.
“Although not directly linked to this budget, the industry would continue its ask for granting of infrastructure status for the hospitality sector and industry-related benefits by all state governments.”
