Budget 2026: Low foreign tourist arrivals underscores tourism industry's demand to promote brand India

Budget 2026: Tourism industry expectations

One of the tourism sector’s key demands has been the need to promote brand India amid lower Foreign Tourist arrivals (FTAs) and the Economic Survey 2026 also highlighted the little to no recovery in FTAs.

Foreign tourist arrivals (FTA) continue to remain below pre-pandemic levels, according to the Economic Survey tabled in the Parliament on January 29.

At 10 million in 2024, FTAs are down by around 8 percent from 10.9 million in 2019.

FTAs also declined by about 11.8 percent during January-October 2025 at 7 million relative to the same period of the previous year at 7.9 million. This is in line with trends seen in the broader Asia-Pacific region and is also on account of growth weakness and political turmoil in key source destinations, the Survey added.

Top tourism players have urged for higher Budget outlay for overseas promotion.

Brand India needs a louder voice, as limited promotion is holding back foreign arrivals, top officials of tourism companies said, seeking a fund boost in the upcoming Budget for global campaigns to make the country more visible and generate jobs at home.

Enhanced allocation for global marketing campaigns like Incredible India will be critical, Thomas Cook (India) managing director and chief executive officer Mahesh Iyer said.

The overseas promotion and publicity budget was dropped to Rs 3 crore in FY26 from Rs 33 crore in FY25.

International marketing of India, especially in long haul and emerging source markets, should be  a priority, Indian Association of Tour Operators (IATO) president Ravi Gosain said.

The travel industry is also seeking simplified tax collected at source (TCS) rates. Replace the complex multi-tier structure (TCS on overseas packages is 5 percent and 20 percent) with a universal 1 percent rate, SOTC Travel managing director and CEO Vishal Suri said.

"This ensures a clear audit trail of information to the tax department and enforcement authority, while avoiding needless cash/ liquidity blockage at travellers’ end," he added.

An improved credit access can make financing easier, said Vikas Katoch, founder and CEO Adotrip. "This will benefit both consumers and businesses, as travel and hospitality will become more affordable for them, businesses will get a chance to innovate and grow," he said.