The hospitality and tourism sector in mission mode shows the recently announced budget

Hospitality Major announcements according to the Finance Minister of India

Prittle Prattle News surveyed opinions from Industry Tycoons. Union Budget reactions and views from Industry Tycoons

Hospitality Major announcements according to the Finance Minister of India:

Ø  The budgetary allocation for the Ministry of Tourism increased to ` 24 bn in FY24 from 13 bn (RE) in FY23

Ø  The budgetary allocation for the Ministry of Culture is to remain at ` 34 bn in FY24 as RE in FY23

Ø  The outlay of the Integrated Development of Tourist Circuits around specific themes (Swadesh Darshan) is estimated at 14.2 bn (BE) for FY24 from 6 bn (RE) in FY23

The government’s allocation for the development of tourist circuits and revival of regional air connectivity will help revive the footfall of tourists and provide a boost to the tourism industry. Selecting 50 destinations with a focus on domestic and foreign tourists will help respective states generate revenue. Encouraging eco-tourism opportunities will support the government’s mission for green growth and the development of local communities. The need to support the One District One Product (ODOP) concept by creating sufficient infrastructure would be realized by the government’s initiative to encourage states to set up a Unity Mall in their state capital, most prominent tourism, center, or financial capital. This would help MSMEs and artisans to formally market their products to domestic and foreign tourists in a targeted manner. All these initiatives are expected to support the revival of the pandemic-affected hospitality and tourism sector to an extent. We have thus assigned a marginally positive rating to the sector.

Arun Singh, Global Chief Economist, Dun & Bradstreet

Accomplished Professional with over 25 years of experience in Brand Management, Operation Systems & Procedure Designing, Relationship Management, Business Development, and People Management with well-known organizations in the Hospitality Sector. Risen from Ranks, is a consistent performer with a proven track record of increasing revenues and streamlining workflow. Keen planner, strategist & implementer with a proven track record of developing procedures, service standards, and operational policies, planning & implementing effective control measures. Worked on the expansion & start-ups of new units.
Extensive experience in planning, supervising, and managing Infrastructure development, resource planning, procurement, and maintenance of inventory. Expertise in designing & implementing training programs on keen customer focus, high energy level, and team spirit in the employees.
Possess excellent analytical skills while evaluating project feasibility, budgeting and assessing cash flow, planning & management across assignments.

Mr. Sandeep Singh, Director of Rubystone

“The Honorable Finance Minister Smt. Nirmala Sitharaman has jointly announced the development of tourist places through public and private partnerships. This will give a much-needed boost to the domestic tourism segment. The budget specifies that 50 tourist destinations will be selected and developed as a package for domestic and international tourism. We welcome this announcement. For domestic tourism, “Dekho Apna Desh” has already been widely promoted. Now similarly, international tourism too will be revived with these initiates. The tourist infrastructure will also be provided on the border and in North East India, which will be highly beneficial for the inflow of tourists. The industry can harness the direct and multiplier effects of tourism in employment generation to the youth of India as the sector creates direct and indirect job opportunities. We believe these implementations will play a pivotal role in overall economic development. This is a good budget for the hospitality and tourism sectors.”

Mr. SP Jain, Chairman, and Managing Director, Pride Hotels Limited

“India has much to offer for the travel experience. Travel businesses and startups can and must take full advantage of this. Infrastructure was a missing piece of the puzzle in the previous budget. This FY budget emphasizes infrastructure growth, tourist destinations, and airports. It is essential for better connectivity and identifying cultural sites as tourist places. This year’s budget will boost tourism and contribute to sharing our culture, history, and heritage with a larger audience. While many other things can be done, this is a great start. The hospitality and tourism industry which plays a significant role in the country’s GDP was waiting for favorable policies and announcements in this budget after facing disappointment from the Centre in the previous budget. Tushar Parihar, Founder, Kaner Bagh – Hospitality and MSME Sector, says, The Finance Minister’s announcement to promote the Tourism sector in mission mode is the most welcoming news in this year’s Budget 2023-2024. The allocation of enormous capital expenditure and the innovative plan for the growth of the tourism and hospitality sector also holds massive opportunities for youth jobs and entrepreneurship. The pandemic severely hit the industry and faced a drastic drop in sales due to the lockdown and covid related curbs for the last two years. But this year, however, I am looking forward to a fruitful and prosperous year as the business has returned in our favor.”

Vandita Purohit, Founder, TraWork- Travel & Tourism, Startup, MSME, Hospitality
“One of the biggest hurdles to growth in the hospitality sector is the cost of capital and a relatively short duration of debt tenure. As this is a high Capex asset class, it has a longer gestation period similar to infrastructure projects like railway, road, metro and aviation. Infrastructure status to the hospitality industry is a long-standing demand of the industry. We hope the finance minister will extend this status to the hospitality. industry in this union budget. The hotel room inventory in India is significantly lower than in other peer nations. With the Prime Minister charting the path for India to be a developed country by 2047 it has a comparatively low room to people ratio, i.e. We have only 0.7 room spaces per 1000 people whereas it is 10 in the United Kingdom and 20 in the United States. As the income levels are rising, the growth in our country revolves around its consumption story. The hospitality industry is one of the major contributors, hence it is imperative to increase the room supply, infrastructure status is the only long-term solution.”
Mr. Nandivardhan Jain, CEO & Founder, Noesis Capital Advisors.
This article is contributed to Prittle Prattle News as opinions and curated by the editor.
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