Budget 2024: What the tourism and travel sector is expecting this year Business
budget 2024 expectations: Finance Minister Nirmala Sitharaman The interim budget for the financial year 2024-2025 (FY25) is all set to be revealed on February 1, 2024. Meanwhile, the focus remains on fiscal consolidation and nominal economic growth projections, with no major policy changes expected as of now.
If we go by sector-specific changes, the travel and tourism sector is also one of the important economic drivers, contributing about 5.8% to India’s GDP and if we go by government targets, The target is to reach it to 1 trillion dollars by 2047.
According to a report, the tourism sector is also estimated to contribute $250 billion to the country’s GDP by 2030, which can generate employment for 137 million individuals.
Also read: Budget 2024 Expectations Live Updates: Will Finance Minister Sitharaman please the common man?
In such a scenario, leading experts in the travel and tourism industry are expecting some bonuses in the upcoming interim budget 2024 Transforming India into a preferred destination. The expectations are as follows:
Focus on domestic tourism
There are hopes for schemes to encourage domestic tourism to mitigate the impact of international travel restrictions. Incentives for hotels, resorts and travel agencies that ensure promotion of local destinations.
to organize tcs and tax reduction
Suggestions include reducing income tax levels to boost annual disposable income. LTA Exemption for domestic tourism, and standardization of five per cent TCS on foreign travel packages.
technology integration
Anticipation of budgetary support to integrate advanced technologies in the travel sector. Investment in digital platforms, contactless services and smart tourism initiatives.
Read this also Budget 2024 Income Tax: How can relief be given to taxpayers?
GST Input Credit
Experts recommend introducing GST input credit for inbound and domestic tourism, centralizing the issues faced by single assessors in multiple states, and simplifying the compliance mechanism.
tds eviction
The travel and tourism industry advocates removal of TDS on automated bookings in line with the government’s commitment to ease of doing business and digital adoption.
financial help
Expectations are high for specially designed financial support packages for the tourism and travel industry. Subsidies or grants to help businesses recover from the long-term effects of the global pandemic.
Marketing and promotional campaigns
Expected budgetary allocation for global marketing campaigns to promote tourism in the country. Strategic promotion to attract international visitors and regain momentum of the region.
Read this also Budget 2024: Simplify the process of filing late taxes
promoting sustainable tourism
There are expectations for initiatives promoting sustainable and eco-friendly tourism practices and incentives for businesses adopting sustainable measures to protect natural resources.
Given that 2024 is an election year, with Lok Sabha elections likely to be held between April-May, the Finance Minister will present the interim budget or vote on account in February instead of a comprehensive annual budget. Therefore, after the formation of the new government, the full budget is likely to be presented in July.
Sitharaman’s announcement that there will be a vote on account indicates that significant policy announcements are unlikely in this interim budget.
The impending interim budget before the elections is taking place at a point where analysts see a stable overall economic outlook supported by improved financial conditions and strong macroeconomic data.
Experts say the ongoing budget process may face challenges from the global economy, a slowdown in the agriculture sector and stress on the rural economy.
If we go by sector-specific changes, the travel and tourism sector is also one of the important economic drivers, contributing about 5.8% to India’s GDP and if we go by government targets, The target is to reach it to 1 trillion dollars by 2047.
According to a report, the tourism sector is also estimated to contribute $250 billion to the country’s GDP by 2030, which can generate employment for 137 million individuals.
Also read: Budget 2024 Expectations Live Updates: Will Finance Minister Sitharaman please the common man?
In such a scenario, leading experts in the travel and tourism industry are expecting some bonuses in the upcoming interim budget 2024 Transforming India into a preferred destination. The expectations are as follows:
Focus on domestic tourism
There are hopes for schemes to encourage domestic tourism to mitigate the impact of international travel restrictions. Incentives for hotels, resorts and travel agencies that ensure promotion of local destinations.
to organize tcs and tax reduction
Suggestions include reducing income tax levels to boost annual disposable income. LTA Exemption for domestic tourism, and standardization of five per cent TCS on foreign travel packages.
technology integration
Anticipation of budgetary support to integrate advanced technologies in the travel sector. Investment in digital platforms, contactless services and smart tourism initiatives.
Read this also Budget 2024 Income Tax: How can relief be given to taxpayers?
GST Input Credit
Experts recommend introducing GST input credit for inbound and domestic tourism, centralizing the issues faced by single assessors in multiple states, and simplifying the compliance mechanism.
tds eviction
The travel and tourism industry advocates removal of TDS on automated bookings in line with the government’s commitment to ease of doing business and digital adoption.
financial help
Expectations are high for specially designed financial support packages for the tourism and travel industry. Subsidies or grants to help businesses recover from the long-term effects of the global pandemic.
Marketing and promotional campaigns
Expected budgetary allocation for global marketing campaigns to promote tourism in the country. Strategic promotion to attract international visitors and regain momentum of the region.
Read this also Budget 2024: Simplify the process of filing late taxes
promoting sustainable tourism
There are expectations for initiatives promoting sustainable and eco-friendly tourism practices and incentives for businesses adopting sustainable measures to protect natural resources.
Given that 2024 is an election year, with Lok Sabha elections likely to be held between April-May, the Finance Minister will present the interim budget or vote on account in February instead of a comprehensive annual budget. Therefore, after the formation of the new government, the full budget is likely to be presented in July.
Sitharaman’s announcement that there will be a vote on account indicates that significant policy announcements are unlikely in this interim budget.
The impending interim budget before the elections is taking place at a point where analysts see a stable overall economic outlook supported by improved financial conditions and strong macroeconomic data.
Experts say the ongoing budget process may face challenges from the global economy, a slowdown in the agriculture sector and stress on the rural economy.
