What impact did the Union Budget have on Indian hotel stocks?

Listed hotel companies such as EIH Ltd, ITC Hotels Ltd, and Lemon Tree Hotels Ltd saw their stocks rise by 2-4% following the budget announcements.

How will the upcoming T20 World Cup affect hotels?

The 2026 ICC Men's T20 World Cup, scheduled from February 7 to March 8, 2026, is expected to be a demand trigger for hotels in cities hosting the matches.

What new initiatives are planned to boost medical tourism in India?

The government plans to launch a new scheme to support states in setting up regional medical hubs that include medical value tourism facilitation centers.

Home / Business and Economy / India's Budget Boosts Tourism: Stocks Soar!

India's Budget Boosts Tourism: Stocks Soar!

1 Feb

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Summary

Hotel stocks rose as budget measures aim to boost tourism.
Tax cuts on overseas travel and new medical hubs announced.
T20 World Cup is expected to drive hotel demand in Feb 2026.

India's Budget Boosts Tourism: Stocks Soar!

India's tourism sector is set to benefit from recent budget allocations and policy changes. Listed hotel companies, including EIH Ltd, ITC Hotels Ltd, and Lemon Tree Hotels Ltd, experienced a 2-4% stock increase on February 1st, signaling optimism for the sector's future. These measures are expected to enhance average room rates and occupancy levels.

Further measures aimed at boosting foreign travel include a reduction in the tax collected at source (TCS) on overseas tour packages to 2%, making international trips more economical. The government also plans to establish regional medical hubs in partnership with the private sector, featuring Ayush centers and medical value tourism facilitation centers to attract foreign tourists.

Looking ahead, the 2026 ICC Men's T20 World Cup, co-hosted by India and Sri Lanka from February 7 to March 8, 2026, is identified as a near-term demand driver for hotels in participating cities. Despite ongoing efforts, foreign tourist arrivals in the first nine months of 2025 remained 19% below pre-COVID levels, underscoring the need for continued promotional activities.