Budget 2026: Tourism industry calls for more funds to promote 'Incredible India' globally

• Tourism industry calls for increased budget to enhance global campaigns and attract tourists.
• Industry requests more funds for Incredible India and a new Tourism Promotion Board.
• Travel sector calls for simplified tax rates and better credit access for growth

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Brand India needs a louder voice, as limited promotion is holding back foreign arrivals, says tourism players, 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.

"Setting up the “India Tourism Promotion Board” dedicated to promoting India will be a great step in this direction. A worldwide promotion of Brand India, funded with adequate promotional funds, would be an important step forward," he added.

He sees inbound tourism as India's largest generators of foreign exchange and job opportunities. "But focused financial support in 2026 is imperative," he said.

In 2024, India saw 9.95 million foreign tourist arrivals (FTAs) and 10.62 million NRI arrivals, a total of 20.57 million international tourists, tourism ministry data shows. An improvement but still short of where India was before COVID. In 2019, foreign tourist arrivals alone stood at about 10.93 million.

While domestic tourism remains the backbone of India’s tourism landscape, continued emphasis on increased infrastructural connectivity, expansion of airports and improving rail travel is needed, said Govind Gaur, CEO, WanderOn.

In 2024, World Travel and Tourism Council (WTTC) president and CEO Julia Simpson said the country's travel and tourism sector value would double to $523 billion versus $256 billion.

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.

Jyoti Mayal, chairperson of Tourism and Hospitality Skill Council, stressed the need for an industry-aligned curriculum, modernised training with digital and artificial intelligence (AI)-integrated modules and regional hospitality skill centres that expand access, especially across high-potential states. "Streamlined apprenticeship pathways and stronger Public-Private-Partnership(PPP) models can significantly boost hands-on training, employability, and wage growth for youth," she said.

Simpson had also said that India's travel and tourism sector, which employs 45 million people, would give jobs to 63 million people in 10 years .