Infra investment, tax incentives: Travel and tourism industry's hopes from Union Budget 2023
The travel and tourism industry was hugely impacted by the pandemic, but with travel starting to return to normal, the sector is looking to recover to pre-pandemic levels by the middle of 2023, and contribute $250 billion to the GDP by 2030. In fact, the industry has a goal of earning $1 trillion through travel by 2047.
These ambitious goals are achievable thanks to the government's efforts to support the industry and allocate funding in the current budget. As we enter 2023, the travel and tourism industry is grateful for the government's support and looks forward to what the Union Budget 2023 may have in store for the sector.
Here are our top three requests for this year's Budget:
We appreciate the government's commitment to investing in technology and improving infrastructure, which will make travel easier and more enjoyable for everyone. By investing in digital platforms, transportation, and offbeat destinations, the Budget can help boost domestic travel and make India a top travel destination.
The sector is predicted to generate $30 billion in foreign exchange earnings, $150 billion in GDP, and 15 million foreign arrivals by 2024. With the appropriate infrastructure and technological investments, this is easily achievable.
Tax incentives for small travel firms
The travel industry is home to around three lakh small businesses, many of which are innovative travel tech startups that have made significant investments in technology. These startups are looking for government assistance to help them expand, and the current budget can provide tax incentives to help small firms grow their businesses.
Support for travel MSMEs
When it comes to bookings, the MSME sector travel companies dominate the market. These companies, which include travel package, cab, and bus booking businesses, are dispersed among various service provider types. To fuel future growth and provide travellers with unique experiences, it is important to provide provisions that will attract greater investment in these MSMEs.
The travel and tourism industry also hopes to see support for small and medium-sized travel tech startups as they are essential to innovation in the sector.
India is a key player in the recovery of international travel, and as the G20 chair in 2023, the country has an opportunity to establish itself as a top travel destination.
To showcase our cultural diversity and welcome visitors to our country, the government has implemented necessary interventions such as visa reforms, improved travel conditions, passenger-friendly airport immigration facilities, and an openness to international travel.
In addition, business-friendly regulations are desperately needed in the travel and tourism industry to make it easier to conduct business, which will increase working capital and keep customers satisfied.
Edited by Kanishk Singh
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)