Tourism sector gets higher outlay in Budget 2024 to achieve 'Amrit Kaal' vision

Finance Minister Nirmala Sitharaman

The tourism sector received 3.3 percent higher capex push of Rs 2,479.62 crore in the financial year 2024-25, up from Rs 2,400 crore allocated in the Union Budget 2023-24.

However, the revised budget outlay for tourism stood at Rs 1692.10 crore.

"Tourism has always been a part of our civilization. Our efforts in to positioning India as a global tourist destimation will also create jobs, stimulate investment and unlock economic opportunity for other sectors," Finance Minister Nirmala Sitharaman said in her Budget speech on July 23.

After the tourism sector was outlined as one of the four opportunities that could be transformative during the Amrit Kaal and achieve inclusive growth by Sitharaman in the Union Budget 2023-24, more initiatives for the sector was expected to be rolled out.

The Budget 2024-25 has allocated Rs 2,080 crore for tourism infrastructure development, up from the revised outlay of Rs 1,294 crore in 2023-24.

Finance Minister Nirmala Sitharaman proposed Vishnupad Temple corridor and Mahabodhi Temple corridor to be supported, modelled on the successful Kashi Vishawanath temple corridor to transform them into world class pilgrim and tourist destinations. She also said that a comprehensive development initiative for Rajgir will be undertaken. "Our government will support the development of Nalanda as a tourist centre besides reviving Nalanda university to its glorious stature," Sitharaman added.

Finance Minister announcing that India has the potential to become a global tourism hub is encouraging however, it would also have been nice to see budget recommendation supporting the same, said Aashish Gupta, Consulting CEO, FAITH (Federation of Associations in Indian Tourism & Hospitality).

He said that measures including increase in the marketing and publicity budget, infrastructure status support to hospitality, abolishment of TCS on travel and reduction in GST rates on tourism travel and hospitality were some of the industry's recommendations.

Out of the total allocation earmarked for the tourism sector in FY2024-25, Rs 33 crore is allocated for overseas promotion and publicity, down from the revised allocation of Rs 100 crore.

For domestic promotion and publicity including market
development assistance, the allocated budget increased to Rs 176.97 crore, up from Rs 95 crore in the revised allocation of 2023-2024.

Gupta said that there was the potential for this budget to address a lot more opportunities for growth in Indian tourism in a structured manner.

He added that the support given to spiritual tourism through corridor development and cruise tourism through tax adjustment on foreign ships in Indian shores will support these sub sectors.

The travel and tourism sector has seen significant growth in the post pandemic period especially segments like spiritual tourism.

The industry recorded over 92 lakh foreign tourist arrivals in 2023, clocking a 43.5 percent year-on-year (YoY) increase, showed Economic Survey 2023-24.

The tourism sector in India is rapidly expanding, with India being ranked 39th in the World Economic Forum's Travel and Tourism Development Index (TTDI) 2024, the survey said.

India earned foreign exchange receipts of over Rs 2.3 lakh crore through tourism, indicating a 65.7 percent YoY increase. India's share of foreign exchange earnings in world tourism receipts increased from 1.38 percent in 2021 to 1.58 percent in 2022.

In 2023-24, to realise the tourism sector’s full potential in creating jobs as well as a growth driver, the government undertook various steps to develop new tourism destinations, upskilling programmes, revival of rural tourism and promoting religious circuits.

The government is in the process of developing at least 50 destinations, selected through challenge mode based on aspects such as physical connectivity, virtual connectivity, tourist guides, high standards for food streets and tourist security.

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. Other key schemes for the tourism sector include Travel for LiFE initiative, a programme that aims to promote tourism through mindful and deliberate actions and sustainable consumption of tourism resources.

The PRASHAD Scheme is aimed at developing tourist facilities across India at pilgrimage and heritage sites.

Another initiative include the 'Amrit Dharohar' scheme, which will be implemented over the next three years to encourage optimal use of wetlands and enhance biodiversity, carbon stock, eco-tourism opportunities and income generation for local communities.