Finance Minister, Nirmala Sitharaman is going to present the Union Budget 2023-2024 on Wednesday, 1 Feb, the governments last full budget before the general election of 2024. Travel Daily shares quotes from hoteliers and travel facilitators about their expectations from the upcoming Union Budget.

Offer incentives to entrepreneurs
Shiv Bose, General Manager, DoubleTree by Hilton Goa – Panaji stated: “I would expect the government to extend overtures to this industry by not raising tax brackets and offering incentives to entrepreneurs with sizeable aspirations towards creating jobs in this field. Furthermore, a reduction in the taxation towards the study of hospitality and related fields will serve as a boon for the youth to take up hospitality as a career”.

Equitable tax policies
Tejus Jose, General Manager, Hilton Bangalore Embassy GolfLinks feels: “The tourism and travel industry is anticipating the upcoming budget allocations with respect to the decision, as proposed reforms that will have a notable influence in the coming year are planned. Last two years the pandemic has had a major impact on businesses, and businesses are capable of providing microfinance services, tax exemptions, and other remuneration to help the industry reconstruct.

One of the vital obligations of the economy’s hospitality and travel sectors is the execution of more equitable tax policies. Additionally, many in the industry are attempting to obtain financial assistance for marketing or advertising efforts to help initiate tourism, along with increased infrastructure improvement to boost the overall consumer experience.”

Boost Safari Tourism
 Mahema Bhutia, Head of Sales and Marketing at Aramness added:”After two long years of slow movement this year should be the golden year full of opportunities for tourism and hospitality. The Government should go full throttle to promote tourism under Incredible India banner, since 2023 marks a remarkable year for our country as we undertake the G20 Presidency.

With distinctive wildlife offerings like the Aramness Gir, we are hopeful that the Indian Government will boost Safari Tourism and this will reflect well on the wildlife tourism products which need more attention.”.

Reduction of GST on hotels
Abhishek Pani, Hotel Manager, Novotel Vijayawada Varun states: “The last two years for the hospitality industry were all about undergoing challenges and getting back stronger with the recently resumed tourism and travel bookings. As a hotelier, I am hopeful that the 2023 budget will include favorable policy announcements for this key sector which will initially aid a speedy recovery in tandem with the longer growth and development of hotels.

I am expecting that there will be a GST rationalisation with a reduction of GST on hotels from the prevalent 18% to 12% as well as reducing the rate of GST on restaurants located in hotels to 12%.”

Full on infrastructure status
Kush Kapoor, CEO, Roseate Hotels & Resorts says: “A full-blown infrastructure status for the hotel sector and further rationalisation of the Goods and Services Tax (GST) and a Central single window clearance for hotel projects are some of the major  expectations from the Budget 2023.

The GST Council in 2019  green-lighted reduction in the rates on the hotel tariffs. The rooms with the tariff of Rs 7,500 and above attract a GST of 18 per cent instead of 28 per cent. The rooms with tariff between INR 1,001 and INR 7, 500 are taxed at 12 per cent. An 18 per cent GST is still high in this competitive scenario, it would have been better if it was revised to 12 per cent for the rooms with the tariff of Rs 7,500 and above. The industry has been clamouring for infrastructure status for decades. The status will enable hotel projects have easy access to cheaper debt that is at par with projects in other industries. A reduced capital cost will have a bearing on both timely completion of projects and their overall financial health.

Lastly, in a bid to fast-track investments, it is recommended to reduce the total number of licenses required to establish a centralised approval system for most common approvals, licenses & permits on an E- approvals basis. These should be granted within a pre-defined time frame or deemed to be approved.”

Decrease GST on by-the-seat helicopter services
Amit Dutta, Managing Director, BLADE India added: “Urban Air Mobility is all about leveraging the sky for covering short haul distances using a vertical take-off and landing aircraft such as helicopters and eVTOLs. The main benefits of these services are last-mile connectivity, accessibility, and time savings due to reduced road engagement. We strongly feel that the Government of India should decrease the GST (goods and services tax) on by-the-seat helicopter services, which currently stands at 18% compared to airline GST of 5% on economy class, to make these services more accessible and affordable for the public. Our Helicopter services from near the airport in Bangalore to the city center cost 4,000/- which would further be more accessible to a broader section of the society with a lower GST rate.”