Union Finance Minister Nirmala Sitharaman, on Saturday, announced measures to boost hotel construction and increase foreign tourist arrivals to spur employment and make India a competitive destination.
She announced that hotels in 50 destinations will be included in infrastructure harmonised master list, which would enable developers to secure long term debt with easier terms and will boost supply of hotel rooms.
“Top 50 tourist destinations in the country will be developed in partnership with States through a challenge mode. Land for building key destinations will have to be provided by States,” Sitharaman said.
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In the 2023 Union Budget, government had announced development of 50 destinations through a challenge mode. The Tourism Ministry had selected 42 destinations for development under its Swadesh Darshan 2.0, a Centrally funded scheme to develop travel sites. Now it is proposed to develop additional 50 new destinations under the model.
Sitharaman also announced steps to facilitate employment-led growth which includes Mudra loans for homestays, PLI incentives for States for effective destination management and visa fee waivers for certain categories of tourists.
The government will also promote medical tourism and Buddhist tourism circuits.
Attractive destination
Despite its diversity and attractions, India receives fewer foreign tourists when compared to countries like Singapore or Thailand. These are important source markets for Indian tourists as well. The government is now aligning efforts to make India an attractive destination.
“Policies are being formulated to improve accommodation, accessibility and attractions,” an official pointed out.
Air connectivity is being improved with expansion of Udan scheme and construction of new airports.
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“Typically, hotels are capital intensive and have a long gestation period. The inclusion of hotels in the top 50 tourist destination sites in the infrastructure harmonised list is a welcome step, since this would enable such hotels to raise financing with a longer tenure and on easier terms,” said Sujjain Talwar, co-founding partner of Economic Laws Practice.
Aashish Gupta, consulting CEO, FAITH (Federation of Associations in Indian Tourism & Hospitality) said the intent in the Budget is progressive and in the right direction with focus on investment and employment generation.
“Initiatives like visa fee waivers and e-visa options for select tourist groups will further enhance India’s appeal as a global destination, making travel more accessible and boosting inbound tourism,” said Aloke Bajpai, group CEO, ixigo.
