Budget 2024 boosts tourism but slashes allocation for overseas promotion by 97%

Allocation for tourism has increased by 48% in Budget 2024-2025.

The finance minister has increased allocation for the tourism sector to Rs 2,449.62 crore in the interim Budget 2024-25 announced on February 1, about 44.7 percent more than the revised figure for the current fiscal.

In the Union Budget 2023, the tourism ministry was allocated Rs 2,400 crore which was revised to Rs 1,692.10 crore.

Budgetary allocation for the tourism ministry primarily comprises two heads – establishment expenditure of the centre and central sector schemes.

The establishment expenditure of the Centre has been allocated Rs 100.28 crore in Budget 2024-2025 from Rs 92.83 crore in the revised Budget allocation of 2023-2024.

Under central sector schemes, tourism infrastructure has seen a significant increase in Budget 2024 allocation to Rs 2,080.03 crore from Rs 1,294 crore last year.

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Promotion and publicity

A look at the Budget allocation for the tourism ministry shows that while the government is increasing efforts to promote domestic tourism, its efforts towards attracting foreign tourists to India have not picked up pace.

Overseas promotion and publicity including market development assistance has seen Budget 2024 allocation coming down by 97 percent to Rs 3 crore from Rs 100 crore in the previous Budget.

"We welcome the increase in budgetary allocation to around Rs 2,000 crore from last financial year's around Rs 1,600 crore and mention of branding in the Budget speech of the Finance Minister. But we must remember that unless we don't do roadshows overseas, familiarisation trips and publicity campaigns abroad, till then we will not be able to draw (foreign) tourists to our country. Every country in our neighbourhood is courting Indian tourists but our effort towards drawing tourists from abroad is zilch. We have to understand that we need to compete with other nations. The urgency and the importance this matter should receive are still missing," said Rajiv Mehra, President, the Indian Association of Tour Operators (IATO).

In Budget 2024, allocation for domestic promotion and publicity including market development assistance increased to Rs 176.97 crore from the revised allocation of Rs 95 crore last year.

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Due to the decline in allocation for overseas promotion in Budget 2024, the total budget for promotion and publicity has come down to Rs 179 crore from Rs 195 crore in the previous year.

Promotion of schemes

The government had launched various schemes to promote tourism including ‘Swadesh Darshan’ scheme to develop sustainable tourist spots with a tourist and destination-centric approach. The allocation for Swadesh Darshan increased from Rs 1,750 crore in Budget 2024 from Rs 818 crore last year.

The PRASHAD (Pilgrimage Rejuvenation and Spiritual, Heritage
Augmentation Drive) Scheme which is aimed at developing tourist facilities across India at pilgrimage and heritage sites saw an increase of 20 percent in Budget 2024-2025. The allocation has increased to Rs 240 crore from Rs 200 crore in the previous year.

Announcement and implementation

In last year's Budget, the government announced that India offers immense attraction for domestic as well as foreign tourists. There is a large potential to be tapped in tourism, it said, adding that the sector holds huge opportunities for jobs and entrepreneurship for youth in particular. The government had said that the promotion of tourism would be taken up on mission mode, with the active participation of states, the convergence of government programmes and public-private partnerships.

On the status of the implementation of the announcements made, the government said that the Ministry of Tourism has undertaken convergence initiatives. Consultations with Line Ministries are regularly held in the areas of connectivity and infrastructure, skilling and entrepreneurship, tourism products and experiences.

The Ministry of Tourism has also revamped its Swadesh Darshan Scheme as Swadesh Darshan 2.0 to develop sustainable and responsible tourist destinations in the country.

More Budget 2024 updates.