Interim Budget 2024: The travel and hospitality industry anticipates Finance Minister Nirmala Sitharaman, who will introduce the Interim Budget on February 1, to concentrate on increasing investments, improving infrastructure, and loosening visa requirements for foreign visitors in order to enhance domestic tourism.
According to Vishal Suri, Managing Director of SOTC Travel, the company is in favor of a multifaceted strategy. In order to lessen the advantage enjoyed by foreign competitors, Suri suggested that the government combine the TCS rate on outbound tours into a single 5% slab, eliminate the TDS currently applied to automated bookings, accelerate the development of infrastructural projects like the Udan Yojana and Vande Bharat routes, improve connectivity to remote but profitable tourism areas, and provide incentives for sustainable travel and tourism.
Madhavan Menon, Executive Chairman of Thomas Cook India, emphasized the significance of the travel and tourism industry on employment creation, foreign exchange earnings, and other related sectors. Menon also emphasized the significance of the government's infrastructure strategy, citing the establishment of new airports, the growth of road, rail, and canal networks, as well as the development of high-growth regions like religious circuits and undervalued hidden jewels like Lakshadweep. Additionally, he stressed the importance of incoming tourism.
Other requirements of the travel and hospitality sector highlighted by Menon include lowering income tax rates to increase disposable income and boost travel and tourism spending, standardizing TCS at 5% of foreign travel packages, allowing GST input credit facility, and streamlining the compliance process in filing GST reports, reconciliations, and audits.
Co-founder and CEO of TravClan, Chirag Agarwal, stated, "Natural resources and a rich history are bestowed upon India." But many of our tourist-friendly spots still need to be properly developed and channeled. According to Agarwal, this development would need significant investment, which the private sector would not be able to supply on its own.
"The scale and pace of development will improve if the government provides financial and policy support. Road connectivity projects and airport infrastructure development can be expedited by the government. Our infrastructure is almost at capacity in several areas. The experience of travellers must not be compromised as we increase travel. Furthermore, travelers and the industry applaud initiatives such as Digiyatra. It's a first for the world. The government must keep implementing and funding technological advancements that enhance the tourist experience, said Menon.
The Ramee Group of Hotels' Vice President for India, Saurabh Gahoi, stated that they anticipate a revolutionary Budget 2024 that focuses on talent development. "Acknowledging the challenges posed by recent global events and focusing on inbound travel, the industry looks forward to robust financial support, along with ongoing support for infrastructure development and streamlined regulations to ease the burden on businesses," he added.
One of the hardest impacted sectors during the pandemic was the restaurant industry, but according to Pranav Rungta, co-founder, director of Nksha Restaurant, and vice president of NRAI Mumbai, the sector has shown resiliency and is recovering. Restoring the GST Input Tax Credit, bringing back the Service Export from India scheme, creating a ministry specifically for food services, lowering the GST on environmentally friendly materials, addressing the GST on commercial rentals, streamlining licences and NOCs, guaranteeing fair e-commerce regulations, expanding operating hours, putting in place targeted subsidy schemes for SMEs, and introducing an employee welfare plan are among the main areas of focus, according to Rungta.
Balasubramanian A, Vice President of TeamLease Services, advocated for the development of infrastructure and initiatives like "Swadesh Darshan" to promote domestic tourism. Additionally, he supported the development of MSMEs in the hospitality sector by providing financial assistance and skill development programmes, and he focused on sustainable tourism by encouraging eco-friendly practices and responsible travel.
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