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10 UNION BUDGET HOSPITALITY BIZ AUGUST 2024
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Union Budget 2024-25

Disappoints Hospitality Sector

with Lack of Structural Reforms

The hospitality sector had high expectations from the Union Budget 2024-25 presented
by FM Nirmala Sitharaman. However, the budget lacks substantial measures to address
the fundamental challenges facing the sector, which are necessary to boost its growth.
Despite the significant multiplier effect of tourism on employment and the economy,
key demands from the tourism and hospitality sectors—such as GST rationalisation,
infrastructure status, ease of doing business, and policy reforms—were once again
overlooked in the budget. HBI Staff | Hyderabad

Insights from Industry Experts

Pradeep Shetty, President, FHRAI development augurs well for the sector. Improved
The hospitality sector has been pinning high infrastructure would translate into better
hopes on the Union Budget for 2024- 25 connectivity, which will be beneficial to the
presented by Smt. Nirmala Sitharaman, on promotion of tourism. The development
the backdrop of the Government of India’s of the eastern region, temple corridors in
stated vision of Viksit Bharat by 2047 and Gaya and Bodhgaya, and identification
the critical role tourism industry holds of Nalanda as a key tourism site continue
in achieving it. However, there is nothing to demonstrate the government’s intent to
spectacular in the budget to bring structural utilize the potential of tourism. Regrettably,
changes to address the fundamental challenges it however there has been no policy announcement
faces in a competitive world order and to accelerate the growth of the sector to facilitate the development of hotels and promotion of inbound tourism.
to be a USD 3 trillion economy by 2047. The announcement of GST simplification, and comprehensive review
of the Income Tax Act provides some hope for the sector that has been
Kabir Suri, President, National Restaurant seeking rationalization of taxes. The benefits to individuals on taxation
Association of India will augment the spending power. The focus on skilling and incentivizing
Reflecting on the recently announced Union employers for creating jobs are other positives that will benefit all sectors.
Budget, we would like to commend the Although not directly linked to this budget, the industry would
Government and our Honourable Finance continue its ask for granting of infrastructure status for the hospitality
Minister Smt. Nirmala Sitharaman, for sector and industry-related benefits by all state governments.
looking to establish economic measures
that will drive India towards a better Nikhil Sharma, Managing Director and
economic future. The EPF support for new Area Senior Vice President- South Asia,
hires will go a long way in significantly bolstering Radisson Hotel Group
levels of employment in the country. This is crucial in developing a stable, We welcome the Union Budget 2024-2025
secure and robust workforce which will be beneficial to all industries which focuses on positioning India as a
including the food services sector. The reduction in income tax slabs is a global tourism hub through progressive
commendable move, empowering individuals with greater savings and initiatives. The surge in spiritual tourism
disposable income, thus driving higher consumption levels, an essential has been recognized, and we are excited
catalyst for sustained economic momentum. to see the sector receiving much-needed
support in this year’s budget. The development
K.B. Kachru, Chairman Emeritus and Principal Advisor, Radisson of road connectivity projects, with a special emphasis on spiritual and
Hotel Group South Asia & President – HAI cultural corridors, underscores the Government of India’s commitment to
Continued focus on infrastructural development, fiscal prudence, and fueling the growth of the country’s rich cultural and spiritual network of
consolidation. Tourism continues to be accepted as an engine of growth for tourism. At Radisson Hotel Group, we have always focused on Tier II and
the economy. Emphasis on spiritual tourism, however, no policy changes to III cities, leveraging a first-mover advantage with 50% of our portfolio in
expedite growth. these regions. Our strategic commitment to these destinations aligns with
Tourism and hospitality play a crucial role in the growth of the Indian the government’s vision, allowing us to meet the increasing demand for
economy. The continued focus on government spending on infrastructure spiritual experiences and further strengthen our presence across India.

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