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Budget 2026: Tourism Eyes Reforms for Growth
26 Jan
Summary
- Tourism sector demands structural reforms for sustained growth.
- Key asks include GST simplification and better financing options.
- Budget 2026 is seen as crucial for economic recovery and job creation.
India's travel, tourism, and hospitality sector is anticipating Budget 2026 to deliver crucial structural reforms, aiming to solidify its position as a key economic growth driver. Stakeholders highlight the industry's vital role in national economic recovery, regional development, and employment generation.
Industry leaders are advocating for a comprehensive policy overhaul rather than short-term fixes. Their proposals include simplifying the Goods and Services Tax (GST), enhancing financing options for businesses, and implementing strategic policy support.
Further recommendations focus on reviewing visa policies for easier processing and expanding on-arrival schemes. Increased government allocation for global marketing campaigns like 'Incredible India' and investment in tourism infrastructure are also pressing needs.
Development of infrastructure in under-served regions, spiritual destinations, and Tier II/III cities, alongside a single-window clearance system for hospitality projects, is deemed essential for accelerated development.
There is also a call for rationalized GST on tour packages and moderation of Tax Collected at Source (TCS) rates for outbound tourism, balancing inbound tourism benefits with outbound travel facilitation.
Beyond infrastructure, skilling reforms are prioritized, including industry-aligned curricula and modernized training modules. Recognizing tourism as an infrastructure sector is also seen as vital for unlocking its full economic potential.
