From easier visa norms to promoting medical tourism, Union Budget 2025 does its bit to attract the fast-decreasing number of foreigners back into the country, but its heart and soul lie firmly in boosting domestic tourism in general, and religious tourism in particular.
One of the major initiatives include developing 50 tourist destinations in partnership with states, including land for hotel projects. Beyond the destinations, the budget also has provisions for improving ease of travel and connectivity to these spots. However, state governments will have to do the heavy lifting.
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It is not clear whether these 50 destinations are separate from the 3,000 crore scheme to develop 40 local tourist spots across the country, announced by PM Modi back in November. Rs 3,295 crore was allocated for this particular scheme.
While the travel and hospitality industry’s long-pending demand for industry status, which would have made loans easier and systems more formalised, has again fallen on deaf ears, the 50 destination scheme does have provisions for hotel constructions at these places being included in the infrastructure HML.
The finance minister did take into account the travel and hospitality sector’s role in being a major job generator, by announcing schemes that had employment generation at its core. This include skill-development programmes for youth, including in hospitality institutes, providing MUDRA loans to encourage homesteads and providing performance-linked incentives to Tates for effective management of tourist destinations.
“Domestic and spiritual tourism is set to flourish, supported by revised income tax reforms that encourage travel within the country,” said Saurabh Gahoi, senior vice president of Ramee Group of hotels.
While visa processes for tourists are set to be streamlined with e-visa facilities, tourists from certain countries are likely to get visa-free waivers, too.
The UDAN scheme which subsidises regional air connectivity also gets a fillip with 120 new destinations to be added to it, in addition to the existing 88 airports. Akasa Air founder & CEO Vinay Dupe said the focus on aviation and infra “will make air travel more accessible, thereby boosting tourism and the economy on the whole,” while SpiceJet chairman & MD Ajay Singh called it a ‘transformative shift.”
“We are particularly excited about the potential for growth in the tourism sector, with a strong emphasis on seamless travel experiences and the creation of destination-led employment,” said Jatinder Paul Singh, travel industry veteran and co-founder & CEO of Viacation.
