GST exemption, more allocation high on the wishlist from travel, tourism and hospitality sector
As India gears up for a full budget following the elections, the travel, tourism and hospitality industry is poised for significant growth and development. The interim budget of February 2024 had already set a positive roadmap, with substantial increases in budgetary allocations for the tourism ministry, highlighting a clear focus on enhancing tourism infrastructure.
Additionally, the emphasis on Foreign Direct Investment (FDI) and the development of iconic tourist centres further underscore the government’s strategy to leverage tourism as a catalyst for economic growth.
Let’s have a look at what the industry specialist foresee:
As per Somesh Agarwal, Chairman and MD of Radisson Blu Palace Resort and Spa, Udaipur, with the industry growing rapidly, strategic investments and policy reforms are crucial. Simplifying GST structures and addressing tax disparities will boost the sector’s competitiveness in the global market and make tourism accessible and affordable for all across the globe. Additionally, providing infrastructure to hotels and convention centres across cities is crucial for investments and driving the sectors’ growth. “We urge the government to abolish the 18% GST category for hotels with high room rates above Rs. 7500/—and merge it with the 12% GST category,” he added.
