Mumbai Tourism Sector Applauds Governments Domestic Tourism Focus in Interim Budget 2024-25

The tourism and hospitality industry in India has expressed its appreciation for the government's continued emphasis on domestic tourism in the Interim Budget 2024-25, which was presented by Finance Minister Nirmala Sitharaman on Thursday. The budget includes several measures aimed at boosting domestic tourism, including interest-free loans for iconic destinations and local entrepreneurs, quality ratings for tourism centers, and improved connectivity through the development of airports, railways, metros, ports, and tourism infrastructure.

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Industry Experts React Positively

Industry experts have welcomed the government's focus on domestic tourism. K B Kachru, Chairman Emeritus and Principal Advisor of Radisson Hotel Group, South Asia, stated that the budget's continued focus on domestic tourism is encouraging and that empowering iconic destinations and local entrepreneurs through interest-free loans and quality ratings will elevate India's tourism landscape. He also highlighted the importance of the projects to enhance connectivity, which will enhance demand and generate employment.

Pushan Sharma, Director of Research at Crisil Market Intelligence and Analytics, noted that the 45% increase in allocation to the tourism sector to Rs 2,450 crore is expected to boost employment generation as well as the sector's share in overall GDP. He added that domestic tourism will also gain from the establishment of a framework for rating tourism centers, the provision of long-term interest-free loans to states, and the continued focus on improving port connectivity, tourism infrastructure, and island amenities.

Positive Impact on Employment and GDP

Sharma further stated that these drivers have the potential to increase the sector's share in overall employment to a top 20 country average of 11.4% from 8% and the share in GDP to a top 20 country average of 10.3% from 6.8%. This growth is expected to have a positive impact on the economy, creating jobs and generating revenue.

Emphasis on Spiritual Tourism and Island Development

Nishant Pitti, CEO and co-founder of EaseMyTrip, highlighted the budget's emphasis on the tourism, aviation, and railways sectors. He noted the government's keen attention to nurturing and expanding both domestic and spiritual tourism, as well as showcasing India's strengths through global events like the G20. Pitti also praised the focus on developing island tourism and fortifying port connectivity, including Lakshadweep, as these measures will create new opportunities and boost economic growth.

Madhavan Menon, Executive Chairman of Thomas Cook India, echoed these sentiments, stating that the interim budget will create a multiplier effect across aviation, tourism, and allied sectors, leading to increased growth and employment generation. He particularly noted the reference to spiritual tourism and projects for port connectivity, tourism infrastructure, and amenities on islands, including Lakshadweep, which aim to develop India's hidden gems and create employment opportunities.

A Forward-Looking Perspective

Ravi Reddy, CSO of Simplify3X, commended the Union Budget 2024 for its forward-looking perspective and ambitious goals. He noted that the budget envisions a prosperous India in harmony with nature and bolstered by modern infrastructure, with the aim of achieving a developed India by 2047.

Conclusion

The tourism and hospitality sector in India is optimistic about the positive impact of the Interim Budget 2024-25 on domestic tourism. The measures announced in the budget, such as interest-free loans, quality ratings, improved connectivity, and a focus on spiritual tourism and island development, are expected to boost employment, increase the sector's share in GDP, and position India as a global destination.