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The budget of 2016, presented by <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> was much of euphoria for tourism industry. The tourism ministry got 70 % hike in the budget with an allocation of Rs 1,590 crore, to focus on infrastructure development and promotion and publicity initiatives. Under <keyword id="2964753" type="UNKNOWN" weightage="20" keywordseo="Swadesh-Darshan">Swadesh Darshan</keyword> scheme, theme-based tourism circuits have been identified for infrastructure development across the country, while PRASAD's (national mission on pilgrimage rejuvenation and spiritual augmentation drive) objective is to augment religious and spiritual tourism in the country. 
 The spread looked delicious and the major players were too happy to believe. But on the fateful night of 8th November last year, the debacle happened. PM Modi demonetized Rs 500 and Rs 1000 notes and tourism industry among many others was badly hit. While the government had the logic of digital transaction, foreign tourists coming to India inspired by ‘Atithi devo bhava’ were taken aback. November being Thanks Giving month for most people in the West became quite thankless to the foreign tourists. With too much limitations on withdrawal and exchange, an online travel portal on condition of anonymity told <keyword id="824043" type="COMPANY" weightage="20" keywordseo="Business-Insider">Business Insider</keyword>, they experienced 15% cancelation of pre-booked trips. 
 
So does the upcoming budget look like a silver lining? 
 
Let’s hear it from the experts: 
 Chander K. Baljee, Royal Orchid <keyword id="6368036" type="PERSON" weightage="20" keywordseo="Hotels">Hotels</keyword> told Business Insider, “I believe the tourism and hotel industry could gain tremendous support if the budget supports a lot of things. The list would include extension of e-tourist visa from 30 days to 180 days, need for multiple entry e-toursit visa instead of the existing single entry, promotion on Medical Toursim. 
 
The industry is still saddled with multiple layers of tax include VAT, service tax, luxury tax etc. and ranges from 20% - 30%. Lowering the threshold of infrastructure status for hotel projects to Rs. 25 Cr. would also do well. Some of the aspects which can be considered are: special incentives like tax-free bonds and income tax exceptions on profits used in re-investment in the tourism sector, development of tourism infrastructure at heritage site, setting up centres for adventure activities and experiential zones. More support to drive job creation in this industry will help improve the poverty alleviation in the country.” 
 
Talking about building of infrastructure, Ritesh Agarwal, Founder &amp; CEO, OYO said, “Infrastructure development is a pre-requisite to provide the much-needed impetus for the industry’s growth. Additional incentives should be provided for infrastructure investments in the travel and tourism sector to accelerate growth. A lower tax rate for hospitality business and the lower rate of interest for real-estate development will ensure opening up of more supply for the nascent branded budget hospitality sector. This will be in line with supporting small owner-friendly policies, such as the exemption of service tax in the sub-Rs. 1000 hotel room category.” 
 
Not just Indian entrepreneurs, even tourism boards of various countries are equally excited about the budget on Februray 1. Hanneli Slabber, Country Manager, South African Tourism India said, “Positive taxation of course will help propel domestic tourism forward. We look forward to positive taxation on airline tickets and airport services to make the proposition of flying domestically and internationally more accessible to all Indians.”

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Here’s how Budget 2017 will be a game changer in tourism industry

Suchayan Mandal

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