As per the budget 2019 India, the travel and tourism industry would see a reduction in taxes, improved infrastructure and enhanced, smoother, and more efficient connectivity. These steps have been taken to boost both international and national tourist traffic.
India, owing to its rich history, mythology, diverse geographical terrain, culinary and lingual variety, has a huge potential to attract tourists on a global level. However, India’s share in international tourism sphere is only around 1.8%. Even the traffic, when compared on a global level is extremely low.
The reasons for this are many — ranging from access to tourist spots, accommodation facilities, communication, safety, and conservative attitude of residents. In order to bring about a change in the tourism sector, both the central and state governments need to take essential steps. And the budget 2019 India aims to give the sector a much-needed boost.
Tourism also plays a vital role in India’s service economy, since it directly impacts sectors such as aviation, hotels, hospitality, and tour operator industries. All these segments offer vast numbers of employment to people; hence, the government needs to pay more attention to it.
It is additionally important to speed up tourism projects in places that have the carrying capacity to attract a greater number of tourists. For instance, if the last-mile connectivity from big cities to tourist spots are improved, it will not only absorb more travelers but will also contribute to the overall development of the country’s economy. Again, one more step is to multiply the air seat capacity in airlines. This is one important factor in attracting more visitors from overseas.
For each of the above reasons, the budget 2019 India focuses on more fund allotment for infrastructural developments, related to airports, railway stations, tourist places, and other facilities. Apart from this, leading firms in the tourism sector had requested the government to focus on favorable policies, fund allotments for startups and better tax reforms.
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Below are a few key highlights of budget 2019 India:
As per Union Finance Minister Nirmala Sitharaman in her maiden budget speech, the budget 2019 does incorporate multiple clauses to boost the tourism sector in India. One of the steps is to develop 17 tourist sites as model sites so as to increase visitor traffic. The 17 sites are:
- Taj Mahal in Uttar Pradesh
- Fatehpur Sikri in Uttar Pradesh
- Humayun’s Tomb in New Delhi
- Red Fort in New Delhi
- Qutub Minar in New Delhi
- Ajanta in Maharashtra
- Ellora in Maharashtra
- Khajuraho in Madhya Pradesh
- Hampi in Karnataka
- Colva beach in Goa
- Somnath in Gujarat
- Dholavira in Gujarat
- Mahabalipuram in Tamil Nadu
- Kaziranga in Assam
- Mahabodhi in Bihar
- Amer Fort in Rajasthan
- Kumarakom in Kerala
The minister also added that the government would now focus more on preserving and encouraging tribal culture, in order to attract travelers to indulge in India’s unique heritage. As per Ms. Sitharaman, 100 new clusters would be established in 2019-20 in order to facilitate 50,000 artisans to become a part of the economic value chain. She stated that there are measures underway to help traditional artisans step foot on the global marketplace by procuring patents.
Other highlights are fabrication and maintenance of digital records and repositories which would contain photos, videos, origin, lifestyle and more information about tribal communities.
Even the union budget for tourism and culture ministries has increased from 1.82 to 7 percent for the year.
What does this mean?
The above steps do promise a major flip to the tourism industry. Since the major focus of the Union Budget 2019 is to improvise on the existing infrastructure and innovation, it means that the tourism sector is all set to get a boost in the years to come. Moreover, the development of 17 iconic sites to be transformed into world-class destinations will obviously be instrumental in attracting more visitors.
However, since the industry demands of free visas for five years and competitive GST rates were not addressed in the budget speech, it is also to be noted that the Indian travel and tourism sector did not witness much of concrete provisions in the budget. Since this sector acts as a key growth driver for the country’s economy and is one of the biggest employment generators, more clauses could have been added.
However, a boost in infrastructure, labor reforms, easy access to capital and talent for both start-ups and MSMEs would enhance productivity and consumption. This is certainly again a good bit of news for hospitality, travel, and tourism. Not only these particular industries, but the measures would also prove beneficial for all related stakeholders.
However, since the industry demands of free visas for five years and competitive GST rates were not addressed in the budget speech, it is also to be noted that the Indian travel and tourism sector did not witness much of concrete provisions in the budget. Since this sector acts as a key growth driver for the country’s economy and is one of the biggest employment generators, more clauses could have been added.
However, a boost in infrastructure, labor reforms, easy access to capital and talent for both start-ups and MSMEs would enhance productivity and consumption. This is certainly again a good bit of news for hospitality, travel, and tourism. Not only these particular industries, but the measures would also prove beneficial for all related stakeholders.
Many leading executives from prominent organizations are of the opinion that the government’s effort toward building a stronger infrastructure is commendable. When one region develops its tourism spots, the act as a model for other tourism sites, thereby adding to visitors growth manifold. It will not only ensure long-term tourist inflow but shall improve the overall visitor experience.
Additionally, creating a digital repository of architecture, traditional art and folk dances is another excellent measure to highlight the nation’s rich tribal cultural heritage. It will lead to the promotion of authentic and ethno-tourism.
Conclusion
In a nutshell, the budget 2019 India does hold a great deal of promise for the Indian economy, especially in the sector of tourism. And this is a step long due since tourism plays a major role in our overall growth. It has a direct impact on generating income for natives who reside in major tourist spots.
Additionally, the indirect effects include impacting the related industries such as airlines, tour operators, visa agencies, hotel and hospitality, and transportation sector — to mention a few allied industries. Many of our remote regions such as the North East are still unexplored.
And they offer huge scope to generate more revenue via tourism. But for that, the infrastructure needs to be developed as most of these places are not easily accessible. However, the budget 2019 India seems to be taking some big strides in this direction. So, we hope that we do witness growth in our tourism sector in the years to come.

