skift take
India's Union Budget has a lot to offer on tourism, including the good (domestic tourism promotion), the bad (unclear travel tax, 60% cut in regional connectivity plan allocation) and the ugly (97% cut in overseas promotion). It had everything.
Peden Doma Butia
While India's recently announced Union Budget for FY 2024-2025 has given a significant increase to the Ministry of Tourism, the amount for global promotions has taken a big hit, being cut by 97% to just Rs 30 million ( Approximately $361,000).
Although the budget introduces measures to strengthen infrastructure and amenities at tourism centres, significant cuts in promotional spending have industry players questioning the government's commitment to inbound tourism.
The industry also expected the recently introduced travel tax issue to be included in the budget, but there was no clarity on that.
Himanshu Dwivedi, Director, Monkfoot Travels said: “Rs 30 million to promote overseas tourism is a joke, but definitely the joke is on us.”
“Other tourist destinations have significantly stepped up marketing and promotional activities abroad to boost the tourism sector,” Dwivedi added.
Indian government measures such as closure of several Indian tourism boards around the world, suspension of Export of Services India Scheme (SEIS) incentives, and lackluster approach to international travel fairs and roadshows have contributed to the industry's woes. is further increasing. The challenges faced by the tourism sector in attracting international tourists are further complicated by the minimal focus on digital promotion.
Dwivedi also expressed disappointment at the industry's reluctance to openly criticize the budget. He said the industry needed to voice its concerns without diplomatic restraint.
lip service to tourists
Himmat Anand, founder of A Dog's Story, is not surprised, saying, “Tourism has never been a priority for any government. The contribution of this sector has been praised, but when asking for help, only lip service is given.'' Enough is enough,” he said.
Rajeev Kohli, joint managing director of Creative Travel, echoed Anand's sentiments. Zero cut is impossible, right? ” Kohli said.
With marketing budget cut to Rs 30 million, Dipak Deva, managing director of Travel Corporation of India, India's largest inbound tourism company, wonders how India can effectively promote itself on the world stage. He said he didn't know.
Mr. Anand pointed to reliance on Prime Minister Modi's statements on tourism priorities and highlighted recent instances where the government's focus shifted based on the prime minister's statements.
“The Prime Minister said that weddings should take place in India and not abroad, but soon the Ministry of Tourism launched a campaign to promote weddings in the country. He went to Lakshadweep for a day and suddenly… This became the destination, and this budget was eventually allocated additionally to the development of the islands. How can a country develop its tourism industry in this way?'' he said. said.
Focus on domestic tourism
There is unanimous agreement that domestic tourism remains the main focus at this time. It is clear that there will be a focus on religious tourism in the future, which will in turn boost domestic tourism, Anand said.
During the budget presentation, Finance Minister Nirmala Sitharaman highlighted the potential of spiritual and religious tourism for local entrepreneurs.
Tourism related announcements
Sitharaman also announced a framework to evaluate iconic tourist destinations based on the quality of facilities they offer. He said states would receive long-term interest-free loans to develop these destinations.
In addition, the Lakshadweep Islands were specially mentioned in the Finance Minister's budget speech, drawing renewed attention to port connectivity and infrastructure development in island regions.
Although Sitharaman assured that “expansion of existing airports and development of new airports will continue to proceed rapidly,” the budget allocation for the regional connectivity plan UDAN (Ude Desh Ka Aam Nagrik) has been cut by a significant 60%. . The scheme is designed to allocate funds for the revitalization of unused or underutilized airports, primarily located in tier 2 and tier 3 cities.
According to data released by India's aviation watchdog, Directorate General of Civil Aviation (DGCA), India's air travel market is one of the fastest growing in the world, with domestic passenger numbers expected to reach around 1 in 2023. 52 million people.
