A host of hotel and tourism stocks rallied up to 4 percent on February 1 after Finance Minister Nirmala Sitharaman announced a slew of measures that would give a boost to the sector in the coming years.
"We will focus on tourism for employment-led growth and top 50 tourist destinations will be developed in partnership with states," Nirmala Sitharam said during the budget speech. She added that a special emphasis will be given to the destinations of Lord Buddha.
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Lemon Tree shares rallied over 4 percent while Indian Hotel Company Limited's stock price gained over 2 percent. ITC Hotels, the recent entrant in the primary market, gained nearly 4 percent. Not just hospitality, airline stocks also darted up. IndiGo, the nation's largest carrier, gained over 3 percent while cash-strapped Spicejet gained nearly a percent. Easy Trip Planners, also expected to get a boost, zoomed over 10 percent.
Industry leaders also called for critical reforms, including infrastructure status for smaller hotel and convention projects, tax rationalization, and a streamlined compliance framework.
The Federation of Hotel & Restaurant Associations of India (FHRAI), among the largest hospitality associations globally also advocated for a single-window clearance system across state and central levels to cut through bureaucratic red tape. By reducing regulatory complexities, the sector expects to attract more domestic and international investors, strengthening India’s position as a global tourism hub.
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