By Sitaram Mewati
The Union Budget has introduced several positive measures for the tourism and aviation sectors, including a reduction in tax collected at source (TCS) and proposed reforms in aviation fuel pricing, but has fallen short on addressing some long-pending industry demands, industry representatives said on Saturday.
Reacting to the Budget, Subhash Goyal, chairman of the Indian Chamber of Commerce’s aviation and tourism expert committee, welcomed the 2% cut in TCS, saying it would encourage outbound tourism and ease the financial burden on students pursuing higher education abroad.
“The assurance to rationalise aviation turbine fuel (ATF) prices and the government’s intent to eventually bring ATF under the GST framework is a welcome step. This will strengthen the financial health of airlines, especially when the sector has seen the collapse of carriers such as Jet Airways, Kingfisher and Go First in recent years,” Goyal said.
He said the focus on expanding air connectivity, particularly in hill states, would benefit tourism across regions including the Northeast, Jammu and Kashmir, Himachal Pradesh and Uttarakhand.
“The emphasis on tourism for job creation and foreign exchange earnings is encouraging. The development of additional Buddhist circuits in the Northeast will help boost tourist inflows and promote the region globally,” he added.
Goyal also welcomed the proposed upgradation of hotel management and tourism institutes and the plan to establish a world-class tourism and hospitality university, saying it would improve skill development and service standards. Investments in inland waterways, riverfront development, aviation infrastructure and seaplanes were also positive steps for tourism growth, he said.
However, Goyal expressed disappointment that tourism was not accorded export industry status and that incentives linked to foreign exchange earnings were not reintroduced. He also flagged concerns over the low allocation for international tourism marketing and the continued absence of market development assistance (MDA) for tour operators.
“This Budget was an opportunity to position tourism as a major engine for employment, poverty reduction and foreign exchange generation. While there are positive measures, the sector’s full potential has not been fully leveraged,” he said.
Editor in Chief : Mewati SItaram
