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Tourism

Indian Union Budget Disappoints Tourism Industry... Yet Again

Peden Doma Bhutia and Bulbul Dhawan
July 23rd, 2024 at 12:27 PM EDT
Spiritual tourism holds a 30% market share in the travel and tourism sector in the country.

Skift Take

Once again, the Indian Union Budget left the tourism industry high and dry, ignoring all their key demands. With their hopes for infrastructure status and tax rates dashed, the industry had to content itself with the crumbs of small mercies.

The travel industry in India had a long wish list for the Union Budget released Tuesday: Industry status for tourism; a uniform tax rate for hotels; streamlined registration for online travel agencies; infrastructure status for hotels.

Instead the industry got a few small offerings: Indian Finance Minister Nirmala Sitharaman said India will develop two temple destinations in Bihar — Vishnupad Temple in Gaya and Mahabodhi Temple in Bodh Gaya. And she said there would be a focus on developing tourism in Odisha. Two tax reform measures were well received.

But despite the focus on making India a global destination, there was no change in the global promotion budget, which had been earlier been reduced by 97% in the interim budget announced in February.

"We expected that the government would reinstate the advertising budget for overseas promotion of inbound tourism. It's disappointing that this didn't happen," said Madhavan Menon, executive chairman of th

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