What does India's tourism sector want from Union Budget 2026?
What's the story
The travel, tourism, and hospitality industry in India is looking for structural reforms in the Union Budget 2026. Stakeholders believe this is a crucial moment as the sector has become a key driver of economic recovery, regional development, and job creation. They want strategic reforms to address fiscal and regulatory gaps. These changes could transform the industry from a service-based one to an infrastructure-led growth engine for India.
Tax relief
Stakeholders highlight importance of reducing indirect taxes
Vishal Suri, MD and CEO of SOTC Travel, said the Union Budget 2026 is a chance to strengthen India's tourism foundations and accelerate growth. Abhishek Sahai, GM of Conrad Pune, echoed this sentiment by saying that reducing indirect taxes would make travel more affordable, enhance global competitiveness, and promote tourism. Harshavardhan Neotia, Chairman of Ambuja Neotia Group, also stressed on a forward-looking Budget that prioritizes infrastructure development in sectors like healthcare, education, urban development, and tourism.
Reform demands
Industry leaders call for simplified GST and financing models
Industry leaders across different segments of the Indian tourism sector have high hopes from the Union Budget. Their top demands include simplified Goods and Services Tax (GST) rules, improved financing models, and support for new ownership models. Mahesh Iyer, MD and CEO of Thomas Cook (India), called for a review of visa policies and increased allocation for global marketing campaigns like Incredible India.
Financial support
Calls for affordable financing and lower interest rates
Iyer also stressed on the need for affordable financing, lower interest rates, and institutional credit, especially for MSMEs. He said investments in infrastructure across the underserved regions, spiritual destinations, and Tier II/III cities will accelerate development. SOTC's Suri suggested GST procedural reforms to achieve a truly 'Good and Simple Tax' system. He also called for replacing the complex multi-tier structure with high tax rates with a universal 1% rate.
Growth potential
Industry leaders advocate for 'industry status'
Suri also called for granting 'Industry Status' to the tourism sector to unlock its potential and facilitate growth. Dinesh Yadav, Founder and MD of Fine Acers, echoed this sentiment. He advocated for industry status, GST reform (especially concerning room rates and bundled hospitality services), new forms of ownership and financing (like sale-leaseback model), single-window clearance system, and standardized compliance procedures across states.
Tourism backbone
Domestic tourism emphasized
Govind Gaur, CEO of WanderOn, stressed on domestic tourism's potential to be the backbone of India's tourism landscape. He called for increased infrastructural connectivity, airport expansion, and improved rail travel. Elton Rodrigues, Director of HostMyTrips, also highlighted the need for better roads, improved rail and air connectivity, and improved facilities at tourist destinations to make travel easier and more affordable for Indian travelers.