Vishal Kamat, Executive Director and Chairman of CII (Confederation of Indian Industries) Maharashtra Chapter, gets candid about his expectations from Budget 2025 for the hospitality industry.
What are your main expectations from the Union Budget 2025 for the hospitality sector?
Our hopes for the Union Budget 2025 revolve around meaningful policy reforms and strategic incentives to stimulate growth. While we applaud the government’s hefty investments in infrastructure, the hospitality sector needs more than just highways and airports. For instance:
- Modernized Visa Policies: Simplifying visa processes and establishing visa-free travel agreements with friendly nations could position India as a global transit hub.
- Simplified Taxation: Streamlining GST and consolidating multiple tax heads would go a long way in easing operational burdens.
- Reform Archaic Laws: Updating outdated regulations would align the sector with modern business needs.
- Speedy Dispute Resolution: A fast-tracked judicial process for resolving disputes would ensure smoother business operations.
These changes could pave the way for a thriving, globally competitive hospitality industry.
How do you think the government’s support for the tourism industry will impact the growth of hospitality businesses like KHIL?
The government’s support for tourism, though indirect, has been impactful. Hosting global events like the G20 has spotlighted India’s potential. As part of the CII G20 initiative, I’ve witnessed how these efforts amplify tourism and hospitality.
States like Rajasthan and Gujarat have set benchmarks by hosting vibrant festivals and cultural events. Such initiatives boost local economies—from tea vendors to transport operators to retail businesses. Even something as small as toothpaste sales can surge during these events!
If the government continues promoting tourism, it will create a ripple effect—generating demand, driving consumption, and ultimately benefiting hospitality businesses like ours.
What specific tax incentives or policy changes would you like to see for hotel investments and modernization?
Rather than seeking handouts, we’re rooting for reforms that make doing business smoother:
- Simplify Complex Laws: Some regulations need to be scrapped or updated, while others—such as those promoting sustainability—must be introduced.
- Ease of Doing Business: India’s global EoDB ranking could be improved through focused reforms, attracting more investors to the hospitality sector.
- Environment-Friendly Policies: Supporting initiatives like recycling and single-use plastic bans helps us align with global sustainability standards.
These changes will enable hotels to modernize while fostering long-term growth.
Do you see any initiatives in the budget that could promote sustainability within the hospitality sector, such as EV infrastructure?
The hospitality sector doesn’t need grand incentives to embrace sustainability—we’re already on it! What we need is for the government to make it easier for us to adopt eco-friendly practices. For instance:
- Boosting EV infrastructure.
- Incentives for green buildings and renewable energy use.
Our industry is hardworking and adaptable. If the government provides a conducive environment, we’ll gladly take the lead in sustainability.
What are your thoughts on how the budget could improve ease of doing business for hospitality companies?
The government can make life easier for hospitality businesses in several ways:
- Simplify TDS and TCS: Tax deductions and collections at source need to be rationalized for better compliance and efficiency.
- Promote Women and Youth Participation: Policies encouraging diversity and inclusivity will energize the workforce.
- Encourage Innovation: Supporting R&D, especially in environmentally sensitive areas, would drive sustainable growth.
- Circular Economy Initiatives: We consume a lot, but we’re equally committed to recycling. Government policies promoting waste reuse could revolutionize the sector.
Overall, the budget should continue its focus on sustainability, innovation, and inclusivity while addressing long-standing operational hurdles.
