Union Budget 2023 has turned out to be a mixed bag for the travel and tourism sector. The Finance Minister has provided an outlay of Rs 2,400 crore for the tourism sector in 2023-24. This is equal to the 2022-23 budget allocation In the revised budget estimate for 2022-23, the allocation was reduced to Rs 1,343.13 crore.
The domestic tourism sector, which suffered a major setback during the pandemic, has got a llip from the Union Budget, with Finance Minister Nirmala Sitharaman proposing integrated development of 50 destinations. Overseas trips, though, are set to get dearer with the government hiking the rate of tax collected at source (TCS) to 20 per cent from 5 per cent.
Tourism sector has been included as one of the focus areas with Sitharaman saying that “tourism promotion will be taken up on a mission mode with active participation of states, and through public-private partnerships (PPPs)”.
Sitharaman said that at least 50 destinations will be selected through “challenge mode”, and overall tourist experience will be developed with physical and virtual connectivity. “Every destination would be developed as a complete package. The focus on development of tourism would be on domestic as well as foreign tourists,” Sitharaman said in her speech. The minister has also proposed to launch an app, in which all the relevant aspects related to a tourist destination will be made available.
Amenities will be developed in border villages too under the ‘Swadesh Darshan Scheme’ to promote rural tourism. Additionally, states would be encouraged to set up a Unity Mall for promotion and sale of GI (geographical indication) and other handicraft products.
The industry has expressed mixed feelings about the Budget as some of the demands for tax rebates or industry status were not covered in the Budget.
