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UNION BUDGET
HOSPITALITY BIZ AUGUST 2024 11
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We are optimistic that this development will not only propel the domestic need to migrate to cities, reducing mobility. Such
tourism sector but will also provide an opportunity for foreign tourists to initiatives are crucial for hyper-local job
further explore the rich culture of India. creation and boosting the manufacturing
sector, driving India towards becoming a
Pulkit Arora, Director, CYK Hospitalities USD 10 trillion economy in the next 7-10
Finance Minister Nirmala Sitharaman’s budget years.
is a game changer for the tourism sector. The Union Budget’s provision for
India aims to establish itself as a world- INR 10 lakh education loans with interest
class tourist destination, focusing on places relief for higher education in India is a big win
that are of immense spiritual importance, for those pursuing the academic route. Given our
which includes Vishnupath temple at low gross enrollment ratio, these loans will make quality education more
Gaya, and Mahabodhi temple in Bodhgaya, accessible, allowing students to choose institutions of merit. This embodies
and comprehensive development of the Kashi ‘Sabka Saath, Sabka Vikas,’ fostering inclusivity from the ground up. By
Vishwanath corridor, and the Brahmkunda of Rajgir enhancing local education opportunities and increasing our GER from 26%
and Nalanda, in Bihar. to at least 40% in the next 5 years, we can cultivate a skilled, competent,
The Indian Food and Beverage industry rises significantly each year. and agile-thinking workforce. This workforce is essential for job creation,
As India aims to promote world-class tourism experience, this would also manufacturing growth, and meeting the workforce needs across various
benefit the F&B industry. The inflow of tourists - international or domestic sectors, supporting ‘Made in India for India and Made in India for the
would like experience the taste of the local food, which will eventually bring world,’ and propelling us towards becoming a USD 10 trillion economy in
up the demand for local food vendors as well as reputed food brands. This the next 7-10 years.
would significantly result in economic and social growth. Also, there will
be an increase in local employment opportunities to run successful food Ahsan Shervani, Vice President, Star Hotels
businesses and manage tourists in these cities. Pvt Ltd (Shervani Hotels)
We welcome the allocation of approximately
Manoj Bhat, MD & CEO, Mahindra Holidays INR 2,450 crores to the sector, marking a
and Resorts India Ltd 44.7% increase from previous estimates.
The budget is focused on fiscal prudence, This funding aims to enhance employment
stimulating investments, providing and stimulate tourism growth which is a
employment, and encouraging growth in welcomed move. As an industry we are still
the economy. The emphasis on improved eagerly looking for a bit more rationalization
connectivity and infrastructure will greatly in the GST structure for hotels and grant of
benefit the domestic tourism sector. The infrastructure status to the industry.
spotlight on developing religious tourism,
will further boost the local economy by providing SP Jain, Chairman and Founder, Pride Hotels
investment and employment. Group
We warmly welcome the budget announced
Akash Bhatia, CEO, Eco Hotels and Resorts today by Finance Minister Nirmala
Limited Sitharaman. The government’s focus
The recent budget plan highlights a on the tourism industry, especially
game-changing vision for India’s tourism the development initiatives for
industry. Building up the Vishnupad and Jharkhand, Odisha, and the North East,
Mahabodhi Temple corridors, along with is commendable. The special emphasis on
the extensive development of Rajgir and Rajgir and Nalanda will undoubtedly enhance
re-establishing the Nalanda University, will religious and cultural tourism, creating new opportunities for growth and
elevate India’s cultural and historical charm. community engagement.
We’re delighted about the assistance for making In 2023, India’s tourism sector attracted over 9 million foreign tourists,
Odisha an ultimate top-spot for tourists. As one of the key players in the marking a remarkable growth rate of over 40% year-on-year. The budget’s
hotel business, it is our aim to ensure that our services will be exceptional commitment to enhancing spiritual tourism, particularly through the
enough to match these improvements and give guests amazing experiences development of significant sites like Bodh Gaya and the Vishnupada
that draw attention to India’s deep roots and lively culture.” Temple, is a strategic move that promises substantial economic benefits for
the regions involved.
Kunal Vasudeva, Co - Founder & Managing Director, Indian School However, we had hoped that the Honorable Minister would grant
of Hospitality infrastructure status to the hospitality industry. As a highly capital-intensive
The government’s allocation of INR 1.48 lakh crore for education, sector, our industry requires significant investments, and the initial 3-4
employment, and skilling, including training 20 lakh youth and upgrading years often yield no profits due to high-interest loans from banks. Granting
1000 institutes, is a significant step forward. For those pursuing vocational infrastructure status would enable us to access loans at lower interest rates,
routes, this is a major win. It will help people develop practical skills facilitating the development of more hotels and improving the quality of
and excel in their fields, bringing more youth into the formal economy. facilities offered. This is essential to attract both Indian and international
Additionally, with manufacturing bases in or near districts, there’s less tourists and to support the overall development of our industry. n

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