With the Union Budget 2025 on the horizon, hospitality sector leaders are calling for stronger government support to fuel tourism growth. Industry voices highlight the need for investments in infrastructure, particularly in remote destinations, to attract visitors and generate employment. A lack of skilled labor remains a key challenge, with businesses often training workers themselves due to the absence of dedicated government programs. Stakeholders also urge policymakers to introduce tax incentives and subsidies, arguing that tourism plays a significant role in economic expansion yet remains overlooked in financial allocations.
Read the Union budget 2025 expectations in detail:
Tarun Gulati, Director, Himalayan Hotels
As we look ahead to the 2025-2026 fiscal year, the hospitality industry must focus on building a $3 trillion tourism economy and welcoming 100 million international visitors annually by 2047. To achieve this ambitious goal, sustainability, and technological advancements must be prioritized. In keeping with the government’s mission to make India a top global destination, the hospitality industry should be supported by allowing Indian hotels to charge zero GST or receive a GST refund for foreign guests, similar to the GST benefits given to Indian software companies on exported services.
This will foster more inbound tourism and enhance competitiveness. Additionally, investment in infrastructure, especially in remote tourist destinations, is crucial for expanding tourism and creating jobs. Through initiatives that focus on sustainable tourism, cultural experiences, and digital innovation, India can transition from ‘Incredible India’ to ‘Inevitable India.’ Continued support for research and technological innovations, as well as international marketing campaigns, will help position India as a holistic tourism hub, contributing to a robust and sustainable hospitality industry.
Sonali Sethi, Head of Strategic Initiatives, Seclude Hotels Home Style
Seclude is at an exciting stage, well poised for exponential growth. For growing businesses like ours, the right government policies can make all the difference. To unlock India’s full potential in heritage tourism and transform old properties into thriving tourism hubs, players like Seclude need financial incentives such as tax breaks or subsidies to be encouraged to preserve and showcase our rich culture.
Additionally, We need to stop sending everyone to the same 5 destinations. It’s time to decongest overcrowded hotspots such as Shimla, Nainital and build up unexplored gems like Ramgarh, Palampur and Pangot with better infrastructure—roads, connectivity, the works—and promote them as the next must-sees destinations. As Indians continue to flock to affordable international destinations for vacations, it is imperative to lower GST on hotel rooms to promote domestic tourism, encouraging people to explore the beauty of their own country.
There is a glaring gap in skilled labour. Currently, we’re training unskilled local workers ourselves because there’s no government support for hospitality programs. Tourism generates jobs, boosts local economies, and drives revenue for the government, yet it receives no subsidies or tax breaks. This needs to change.