Hospitality and Tourism Industry Reacts to Budget 2022-23

by  Mugdha Gaonkar Industry Watch | February 2, 2022 | Feature

Union Budget 2022-23 Nirmala Sitharaman

The Union Budget for 2022-23 was presented on 01 February 2022 by Finance Minister Nirmala Sitharaman, with a focus on accelerating the economy, expanding business opportunities, and potentially creating 6 million new jobs. Agriculture, healthcare, small businesses, and infrastructure were all heavily represented in the proposals.

During the presentation Sitharaman stated that the Union Budget 2022-23 proposes to extend the Emergency Credit Line Guarantee Scheme (ECLGS) for the hotel and hospitality industry till March 2023 and enmark an additional Rs 50,000 crore for hospitality and related sectors.

“As a preferred ecologically sustainable alternative to conventional roads in difficult hilly areas, National Ropeways Development Programme will be taken up on PPP mode. The aim is to improve connectivity and convenience for commuters, besides promoting tourism. This may also cover congested urban areas, where conventional mass transit system is not feasible. Contracts for 8 ropeway projects for a length of 60 km will be awarded in 2022-23,” the Finance Minister said.  

With the government promoting digital infrastructure through the budget, here is how Hospitality and Tourism Industry Stalwart recognises it as an opportunity to grow.


 

“The Union Budget 2022-23 reflected a development and investment orientation, with much needed emphasis on infrastructure, technology, skill development and health."
- Madhavan Menon, Managing Director, Thomas Cook (India) 

“The Union Budget 2022-23 reflected a development and investment orientation, with much needed emphasis on infrastructure, technology, skill development and health. From a Travel & Tourism perspective however, the Union Budget has been disappointing. The Budget made no reference to the industry’s recommendations to aid revival, including rationalization of taxes (a complete GST holiday, exemption of TCS on outbound tours, reduction in indirect taxes), removal of SIES benefit capping of Rs 5 cr.”

“For a sector that is a key contributor to the country’s GDP and brings in valuable foreign exchange earnings, with a force multiplier impact on employment and skill development, a stimulus would have created significant value in supporting the country’s road to recovery and growth. The limited relief in acknowledgement of the severe impact to the hospitality sector, was the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) to March 2023, with an expansion by Rs. 50,000 crores to a total of Rs. 5 lakh crore,” Menon added.

"50,000 crore earmarked for hospitality and related sectors is a welcome move."
- Mehul Sharma, Founder & CEO, Signum Hotels & Resorts

“The Emergency credit scheme increased from 50k crores to 5 lakh crores, and extended till March 2023, will bring some relief to the ailing hospitality sector. However, I see only a marginal impact of the e-passport announcement. 50,000 crore earmarked for hospitality and related sectors is also a welcome move."

"This will help the cash strapped hotel entrepreneur to bounce back from the burden and losses of covid19."
- Sibasish Mishra, Founder and CEO, BookingJini

“The Union Budget 2022 no significant direct announcement impacting Travel, tourism and hotel though there is an extension of Emergency Credit Line Guarantee Scheme (ECLGS) upto March 2023 is a welcome move. The same has been further expanded by 5000 crores for the Hospitality industry. This will help the cash strapped hotel entrepreneur to bounce back from the burden and losses of covid19. Great news in the budget for backpackers and travelers exploring inaccessible by roads in the hilly areas, this budget proposed, 8 ropeway projects for a length of 60 km will be awarded in 2022-23 as a pilot and with the success of these there will be more to come.

"The E-passport move will make the ease of travelling abroad much easier, travelers who already have been desperately waiting to go abroad since 3 years due to travel restrictions will avail this facility the most and we will witness surge in outbound tour. The Budget travelers' segment which compromises more than 66% of the traveler will look forward for a great experience under Vande Bharat Trains in near future thus boosting tourism and hotel industry. These trains will be not only be energy efficient but also cheaper, faster and safer," Mishra further added.