National Institute of Hospitality proposed in Budget 2026 to power skills, service quality

Hotel

Industry leaders across hospitality and tourism have welcomed the proposed National Institute of Hospitality in Budget 2026, calling it a long-overdue step towards institution building and talent development, even as they flagged unresolved concerns around taxation and infrastructure status.

Shwetank Singh, MD & CEO of Chalet Hotels described the proposed upgrade of the National Council for Hotel Management and Catering Technology (NCHMCT) into a National Institute of Hospitality as 'transformative'. He said it would help build a world-class talent pipeline aligned with industry needs.

World-class hospitality talent hubs and professional guides can help extend stays, support local economies and create dignified livelihood opportunities,” noted Rahool Macarius, market managing director for Eurasia at Wyndham Hotels & Resorts.

"When combined with digital destination initiatives and sustainable eco-trails, these measures could boost the sector’s competitiveness," he added.

Jyoti Mayal, Chairperson, THSC (Travel Hospitality Skill Council), who has been advocating the proposal to set up the first-ever National Institute of Hospitality and who had also discussed the same with the Finance Minister during budget consultations, said that the initiative will be transformative for hospitality education and skill development.

Nikhil Sharma, managing director and COO for South Asia at Radisson Hotel Group, said the announcement recognises that skilling is central to the sector’s long-term sustainability. He noted that hotel companies have already been investing in structured training programmes and partnerships with hospitality institutes to strengthen talent pipelines.

A National Institute of Hospitality can create future-ready professionals who understand destination-led hospitality, regional cultures and experiential dining,” Vicky Bachani, co-founder of Jugnu Goa, said. "For international tourism hubs like Goa, Bachani added, authenticity and local relevance matter far more than replication, as what destinations offer directly shapes India’s global tourism image."

Jigar Sanghvi, co-founder of Epitome, echoed the need to bridge the gap between theory and practice. “The proposed institute addresses a long-standing disconnect between classroom learning and the realities of running hospitality businesses,” he said. For cities such as Pune and Mumbai, which are emerging as food and lifestyle hubs, Sanghvi believes the initiative can help create professionals who are operationally strong, creatively confident and business-aware.

Richa Adhia, managing director of Eight Continents Hotels & Resorts, said investments in professional guides, hospitality talent hubs and skill development initiatives will not only raise service standards but also strengthen local employment.

At the same time, some operators pointed to gaps in the Budget. Pushpendra Bansal, COO of Lords Hotels & Resorts, said the decision not to restore Input Tax Credit for hotels with room tariffs below Rs 7,500 continues to hurt budget and mid-scale properties. He also flagged that the 18 percent Goods and Services Tax (GST) slab on premium room tariffs—among the highest globally—remains unchanged.

Chalet's Singh flagged that the industry’s long-standing demand for comprehensive infrastructure status remains unaddressed.

While opinions differ on taxation and fiscal relief, industry voices broadly agree that a National Institute of Hospitality could be a critical building block in professionalising the sector, improving service standards and supporting sustainable growth across India’s tourism economy.

“If India is targeting a $1 trillion Gross Domestic Product (GDP) contribution from services and 64 million jobs by 2035, these structural enablers are critical,” Singh said.