Budget expectation 2024: Tourism industry demands 'reduction in income tax levels, simplifying visa process'
Budget 2024: According to the World Travel & Tourism Council (WTC), the industry will be contributing around Rs 21.15 trillion to India’s GDP in 2024
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The travel industry has suggested a slew of initiatives for Union Finance Minister Nirmala Sitharaman ahead of the upcoming Budget 2024 that will be presented in the Parliament on 23 July, Tuesday.
According to the World Travel & Tourism Council (WTC), the industry will be contributing around Rs 21.15 trillion to India’s GDP in 2024, a marked 21% above 2019 levels.
Besides, the WTC has also predicted an increase in employment in the travel and tourism industry by 2.45 million this year.
Madhavan Menon, Executive Chairman at Thomas Cook (India) Ltd has recommended slashing the income tax levels that will boost travel and tourism spending. Besides, Menon said that LTA (Leave Travel Allowance) exemption should be implemented annually as against twice in four years to catalyse domestic tourism.
Menon also suggested that the setting up of new airports via private participation should be prioritised by the Centre. There should also be a rapid expansion in rail, road, and waterways (sea and river cruises), he added.
As per industry data, air travel in the country has surpassed pre-COVID levels as compared to the USA, Canada, and Australia where the passenger traffic has just reached or is still below pre-COVID levels. From January to May 2024, domestic airlines carried 661.42 lakh passengers, marking a 4% YoY growth. Rail passenger volumes have also increased. According to a recent F&S report, buses remain the most preferred mode of travel, accounting for 70% of all transportation in India as of March 2023.
Aloke Bajpai, Chairman, Managing Director & Group CEO, ixigo has expected that the Modi government will continue to allocate resources for the development of infrastructure, technology, and safety measures at existing and new airports in tier 2,3 and 4 cities to cater to the growing demand.
Bajpai also emphasized the need to simplify visa requirements for tourists visiting India to boost foreign arrivals.
"We look forward to budget measures that support growth, innovation, and sustainability in the travel and hospitality sector, enhancing India's status as a top travel destination," the ixigo chairman added.
Kanika Tekriwal, Founder & CEO at JetSetGo is hopeful that Tuesday's budget will introduce more policies that will empower women, especially in aviation to excel on the global stage.
"By investing in industry-designed training programs, we can help organizations quickly absorb these women into their workforce and also inspire and equip young women to pursue careers in aviation. It's time to break down barriers and open up new horizons for women across India," Tekriwal said.
