The Union Budget 2023 was presented by Nirmala Sitharaman, Minister of Finance of the Union, on January 2, 2023.
After nearly three long, rocky years, the winds of transformation have started to blow for the travel and tourism industry. In 2022, there was a significant upswing in the sector, and the data are encouraging. The contribution of the travel and tourism industry to the Indian economy would surpass pre-pandemic levels in 2024 with a year-over-year growth of 20.7%, according to research by the World Travel & Tourism Council (WTTC). The struggling industry needs a clear road map to properly recover, but it also has high expectations for Budget 2023 to help it thrive in the post-COVID era.
Travelers are working to reduce their carbon footprints and concentrate on sustainable travel as the globe grows more environmentally aware. The industry must transition to more environmentally friendly types of travel while continuing to be profitable in light of the increased awareness. A fantastic move that could support group efforts that brands can make to incorporate sustainable projects is the establishment of green tax incentives in Budget 2023–24 or providing subsidies to travel firms that are investing in green technologies.
There is a lot the government can do to boost domestic tourism because it is predicted to contribute 9.9% of the nation’s GDP by the end of this decade. IT tax breaks for domestic travel and tourism expenditures will encourage tourism and increase domestic travel. The business looks to the government to continue making announcements of this nature that will support domestic travel. The primary goal of the next budget for 2023 should be to raise consumer disposable money, which can then be used to promote domestic travel and the diverse local ecosystems.
The year is crucial for India’s tourism and hotel industry because we want to see robust growth following the pandemic-caused downturn. The focus should be on initiatives like tax cuts for aviation turbine fuel (ATF), urgent financial assistance until demand fully recovers, and financial incentives for the maintenance, repair, and overhaul (MRO) sector. To lower the cost of flying, ATF should be included in the GST system. One of the main sources of employment in the nation is the travel industry. Therefore, a financial aid package for the industry’s compensation is required. to cover the wages of different employees as well as their employee retirement plans and other medical costs paid for by their employers. This would aid in employee retention and enable the company to operate with the fewest resources possible.