Travel and Hospitality Industry: Budget Expectations 2019

 

The government needs to allocate more towards infrastructure

Sunil Gupta, MD and CEO, Avis IndiaSunil Gupta, Avis India

India is rapidly growing to be a large market for travel and tourism industry and is expecting international tourist arrivals to reach 30.5 million by 2028, therefore the government should focus more on improving the infrastructure of the country in terms of developing more roads and maintenance of tourist places for increasing the economy from tourism.

The government needs to allocate much more towards infrastructure this year as last year government increased infra spend towards roads, air, rail and inland waterways by almost 22% to 5.97 lac crore, wherein we are expecting it to get an increase to 30% this year.

Re-introduction of input tax credit for F&B industry

Guarav Dewan, Travel Food Services (TFS)

2018 has been a good year with the implementation of GST across sectors ultimately benefitting the end users. We expect the upcoming budget to be continuing the focus on infrastructure development and policies to be continuing to drive change in the sector. Schemes like Udaan and Bharatmala have really started to take off and we are already seeing some positive results. These initiatives have started the engine and will greatly benefit the economy and will continue to fuel the growth for the travel retail and allied sectors. We hope that along with highway development, the focus will also include enhancing the overall passenger experience for Indian Railway traveller.

Master concession models for airports have been a game changer, a similar framework is expected to positively impact Indian Railways and help transform the passenger experience. We are also looking forward to re-introduction of input tax credit for F&B industry, to the extent wherever the industry is paying higher taxes than 5%.

Cruise Lines are looking at a relatable tax regime

Ratna Chadha, TIRUN Travel Marketing India

The government has recognized the potential of cruising as an economic multiplier and is catching up with the world in terms of policies and infrastructure. Cruise Lines are now looking at the government to create a relatable tax regime, which is at par with the rest of the world.