Budget 2023 Reactions
Raoof Dhanani, Managing Director - Sayaji Hotels
Budget 2023 has been revolutionary in its efforts to give relief to every sector. Opportunity for job creation and entrepreneurship in the tourism sector is the need of the hour. Developing a package for domestic and international tourism out of 50 tourist destinations is a great start.
Revival of fifty additional airports, water aerodromes, advanced landing grounds and heliports will help in enhancing regional air connectivity in the country.
Along with these measures GST reduction was also expected which unfortunately was missed.
SP Jain, Chairman and Managing Director, Pride Hotels Limited
The Honorable Finance Minister Smt. Nirmala Sitharaman has announced the development of tourist places jointly by public and private partnerships. This will give a much-needed boost to the domestic tourism segment. The budget specifies that 50 tourist destinations will be selected and developed as a whole package for domestic and international tourism.
We welcome this announcement. For domestic tourism “Dekho Apna Desh” has already been promoted very widely now similarly international tourism too will be revived with these initiates. The tourist infrastructure will also be provided on the border and in North East India which will be highly beneficial for the inflow of tourists. The industry can harness the direct and multiplier effects of tourism in employment generation to the youth of India as the sector creates direct and indirect job opportunities. We believe these implementations will play a pivotal role in overall economic development. This is a good budget for the hospitality and tourism sectors.
Paritosh Ladhani, Joint Managing Director, Sincere Developers, which owns Taj Hotel & Convention Centre Agra
The Union Budget 2023-2024 presented by the finance minister (Nirmala Sitharaman) highlighted that the Indian economy is on a growth trajectory in spite of the global economic challenges. In her Budget speech, the FM emphasized that the country offers “immense attraction” for both domestic and international tourists. With the government announcing that states will be encouraged to set up a "Unity Mall" in the capital city or most popular tourist destination for the promotion of 'One District, one product' theme, such initiatives will help to unleash the potential vested in the tourism sector. I also expect that the change in tax regime announced in the Union Budget will result in more disposable income in the hands of middle-class consumers – which I expect ultimately will spur consumption in activities like travel. Regional connectivity will see a boost with the plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds.
Pradeep Shetty, President, Hotel and Restaurant Association of Western India (HRAWI)
The fact that Tourism got attention in the Union Budget is a big welcome. The Hon’ble FM recognized the country’s potential for domestic as well as foreign tourists and the huge opportunities the sector holds for jobs and entrepreneurship. The Hon’ble FM stressed on promoting tourism on mission mode, with the active participation of States, the convergence of Government programmes and public-private partnerships. This is especially good news for regional tourism and hospitality.
Developing new airports, heliports, water aerodromes and advanced landing grounds to improve regional connectivity will unlock the vast potential for growth in the Western region of India. An integrated and innovative approach through challenge mode will be a game changer for the destinations in the Western region selected through this route. The Unity Mall initiative too is a great step in the right direction that encourages States to promote regional tourism and sale of their own ODOPs (one district, one product), GI products and other handicraft products. The Credit guarantee scheme for MSMEs with an infusion of Rs.9000 Cr into the corpus is expected to help small and medium-scale hotels and restaurants.
Asif Fazlani, Managing Director, Fazlani Nature’s Nest
The government's focus on tourism in the budget by giving it a top priority is commendable. The allocation of resources highlights the importance placed on boosting employment through the tourism sector. The budget demonstrates the government's commitment to the holistic development of the industry. The plan to develop 50 tourist destinations for both domestic and international tourists will revolutionize the tourism industry in India.
Ms Sejal Purohit, Founder, Seven Spring- Premium Tea Startup, which recently launched India's first 100% compostable tea sachet packaging.
"The Indian government this year has presented a growth-oriented budget with a special focus on boosting the manufacturing sector to create massive employment opportunities and to maintain India's status as the world's fastest-growing economy even after the global crisis due to the pandemic.
The concessional corporate tax for newly incorporated manufacturing companies is a positive move towards promoting the "Make in India" initiative, as this will encourage new manufacturing industries as well as increase private investment in this industry.
Apart from that, the funds allocated to the Green industry are also positive for the startups who are trying to bring new technology and products to this industry to bring about a revolution as well as contribute to the whole economy."
Mr. Nandivardhan Jain, CEO & Founder, Noesis Capital Advisors
The Union budget has shown positive signs for the Hospitality, Travel, and Tourism industries, the Union Finance Minister Nirmala Sitharaman has encouraged the states to set up a ‘Unity Mall’ in the state capital or at an attractive tourist destination in the state for the promotion and sale of 'One District, One product' (ODOP) and Geographical Indication (GI) products along with other handicrafts.
While the Minister announced 50 tourist destinations will be selected and developed as a whole package for domestic and international tourism, the overall development with this vision is an impetus to the sector. The FM Sitharaman stated, “Dekho Apna Desh' initiative was launched by the Prime Minister to the middle class to prefer domestic tourism over international tourism whereas 'Swadesh Darshan Scheme' was launched for integrated development of theme-based tourist circuits”. Moving towards, emboldening the active participation of states, convergence of government programmes and public-private partnerships. The future seems bright and an exciting one with 50 additional airports, and helipads to be revived to increase connectivity with the budget of 3,114 crores to the union civil aviation ministry. This will further increase the passenger movement and boast the hotel room inventory across the region which will increase employment opportunities and parallelly uplift the community, promoting sustainable tourism.
Mr. Sarbendra Sarkar, Founder & MD, Cygnett Hotels and Resorts
The Union Budget 2023-2024 presented by the Finance Minister (Nirmala Sitharaman) is a growth-oriented one aimed to help India weather the current global economic challenges. With the FM announcing plans to renew 50 additional airports, helipads, water aero drones, and advanced landing grounds, it will boost regional connectivity. Moreover, the announcement to develop 50 destinations for domestic and international tourists will also help to draw attention to the country’s tourism and hospitality sectors. The Finance Minister said that these tourist destinations will be selected through challenge mode. The impetus on Dekho Apna Desh will provide a further boost to the growth of domestic tourism in the country. The FM also highlighted that states will be encouraged to set up a "Unity Mall" in the capital city or most popular tourist destination for the promotion of the 'One District, One product' theme. Such initiatives will also help unleash the potential taped in the tourism sector.
Pushpendra Bansal, COO, Lords Hotels & Resorts
Finance minister decision to take tourism on a mission mode in Budget 2023 with active participation of states, convergence of government programs and public-private partnerships is a great move.
An app which will provide a real time information of tourist destinations in addition to aspects such as physical connectivity, virtual connectivity, tourist guides, food streets and tourists’ security will surely enhance tourist experience.
50 destinations to be developed as a complete tourist package will promote domestic as well as foreign tourism.
Kulbhushan Talwar, Cluster General Manager, Mosaic Hotels
We welcome the announcement made by FM to develop 50 tourist destinations in the country as a whole package to encourage both domestic and international tourism. As this step includes the development of destination in terms of transport connectivity, virtual connectivity, tourist guides, tourist security and high standard food joints, it will definitely boost the employment opportunities generated collectively by hotels, F&B players, tour and travel agencies, OTA etc.
Also, the government’s plan to launch the ‘Dekho Apna Desh’ initiative will motivate people, especially young tourists to travel within India. The initiative will further strengthen the hospitality, travel and tourism sector to rebound rapidly and compensate for the losses that occur due to the pandemic.
Overall, Union Budget 2023 was balanced and I expect the direct tax recommendations will empower the middle class to spend the money on lifestyle and travel.
Varun Arora, CEO and Co-Founder of Ekostay, a homestay venture
The Union Budget 2023 led by Finance Minister Nirmala Sitharaman came with several great propositions and opportunities for the travel and tourism sector this year. the government identified their lack of concrete monetary support to the sector in the previous budget and took steps to rectify that. The FM addressed the immense importance of the travel and tourism industry in India’s GDP and the ample job opportunities and economic growth potential it holds.
To boost the inflow of tourism from domestic and international tourists, some of the steps taken by the government are impressive. For instance, the selection of 50 tourist destinations in the country to be developed as a whole package and the revamp of 50 airports, helicopters, and aerodromes for improving regional air connectivity and boosting the influx of domestic and international tourists will improve the tourism infrastructure tremendously. The railway sector is also receiving a capital outlay of ₹ 2.40 lakh crores, which will improve travel accessibility for the low-income sectors and, in turn, boost tourism. To ease the stay of international and domestic tourists, the government will also look into improving the standards of food safety, tourist security, and physical and virtual connectivity, which we find commendable.
As a positive side-effect, we will also see more job opportunities for the public, especially the youth. On the capital outlay front, we think that the infusion of the Credit Guarantee Scheme with ₹ 9000 crores and the provision of ₹ 2 lakh crores collateral to MSMEs in a bid to boost fund flow to the MSME sector will encourage startups and small businesses in the travel and tourism industry to expand their operations and witness an increase in revenue. It will give confidence to MSMEs and startup owners to approach banks for loans and ease the burden on banks to lend funds to MSMEs without collateral. However, unfortunately there was no relaxation on the GST front which was much anticipated from the government. But overall unlike the last budget, these are some concrete developments that will aid in promoting and boosting the tourism industry by a decently fair margin.
