Travel and Tourism Sector 2023 – Latest Budget Updates

Introduction

A few days back, the Union Budget for 2023 – 2024 was released. This budget for travel and tourism will have a direct impact on tickets to India. Since tourism has always been a massive income and employment generator, India had high expectations from the 2023 budget for the travel and tourism sector.

On February 1st, 2023, the Union Minister for Finance & Corporate Affairs India (Smt. Nirmala Sitharaman) has recently revealed the budget. This budget focuses on both domestic and international tourism. So no matter whether you wish to travel within India or a premium abroad location like the USA, there are plenty of options and schemes to boost tourism.

Importance of Travel & Tourism

The tourism sector is one of the major segments that contribute to the economy. In fact, people are highly dependent on the tourism industry for their livelihood from across the country, as well as the world. So the tourism sector holds huge opportunities from jobs to entrepreneurship.

The tourism and hospitality industries will be at their absolute pinnacle in the future, according to IBEF statistics. Thus, the travel market is projected to reach US$125 billion by FY27 from an estimated US$75 billion in FY20. Moreover, the flow of international tourists in India is projected to reach 30.5 million by 2028. In case you are planning to visit a country rich in culture like India, then make travel to India from USA checklist for a better experience.

Travel & Tourism: Funds Disbursement in India 2023 

  • The tourism and travel sector has been allocated Rs 2,400 crores in Union Budget 2023-2024. This budget represents a hike of 18.42% as compared to the previous year’s budget.
  • For infrastructure development: Rs 1,644 crore has been allocated. Similarly, for international promotion and publicity for travel: Rs 421.50 crore, and for domestic promotion, and publicity: Rs 75 crore.
  • The Indian travel and tourism sector will add 50 additional airports, helipads, water aero drones, as well as advanced landing grounds to improve regional air connectivity to enhance the international tourist experience.
  • According to the new budget, 50 tourist destinations will be selected in India. The selection of the destination will be done via a challenge mode to create a complete package for domestic and international tourism.
  • Additionally, the Indian government will take an active initiative to encourage local border village tourism to promote regional culture.
  • India will also promote the ‘One District, One Product’ scheme. So the government will also set up a unity mall in state capitals, tourist spots, or monuments. These malls or monuments will elevate GI products and other handicrafts from various states. Thus, providing a great source of income to the local people.

Travel Budget Impact on Aviation Industry 

As stated by the Indian government, 50 extra terminals, helicopters, water aerodromes, and advanced landing grounds to upgrade air connectivity. This means it will become easier for travelers to access flights and save time. If you are traveling with students, then do not overlook student discount flights to save an extra penny. Since there will be many add-ons, the overall experience will be highly enhanced for tourists. Moreover, the Indian government will pay keen attention to international travelers to encourage the travel and tourism industry.

App To Be Launched for Tourist Destination

  • In the 2023 Union Budget, India will launch a new app with tourist destination information.
  • The information in the application will include physical connectivity, virtual connectivity, tourist guide, street food, and tourist security.
  • The aim to develop and launch an app for tourists is to enrich the domestic and international touring experience.

Plans for Domestic Tourism Development

  • India will work on skilling and entrepreneurship development based on specific sectors to promote the “Dekho Apna Desh” initiative.
  • Tourism sector infrastructure, as well as amenities, will be improved in border villages under the “Vibrant Villages Programme” to boost regional culture exposure to tourists.
  • With the latest budget, India will highly promote “Dekho Apna Desh”. This will majorly target middle-class people to travel domestically over international tourism.

Tourism Schemes for Local Tourists

  • There are 2 schemes “Dekho Apna Desh” and “Swadesh Darshan Scheme” launched by the Indian government for tourism development.
  • Another scheme India will launch is “Unity Mall”. This initiative will promote and sell state products and handicrafts to tourists and boost income sources.
  • The travel and tourism budget will encourage states in setting up Unity Mall in capital cities or tourist centers to attract more tourists.
  • With the latest budget and schemes, promotion for tourism and travel will be taken up on mission mode with active participation from states and private-public partnerships to get quick and efficient results.

Tourism Potential in India

  • India as a country has a massive attraction for both domestic and foreign tourists.
  • The Indian travel and tourism sector has huge potential for employment and entrepreneurship, significantly for the young generation.
  • This year, the promotion of the tourism sector will be done with full enthusiasm considering the mission mode with active participation from states and private-public partnerships.

Foreign Tourist Allowances & Overseas Tourism Agendas

  • The Indian government will increase overseas tour programs from 5% up to 20% under Tax Collection at Source for foreign remittances and the acquisition of international programs.
  • International tourists will directly impact outbound pilgrimage and result in increased costs for Indians going on holidays abroad.

Eco-Tourism

  • Wetlands like the sea, beaches, etc. will be highly promoted for eco-tourism opportunities for domestic and international tourists.
  • Based on the “Amrit Dharohar” scheme in India, huge encouragement will be given to the optimal use of wetlands and enhance bio-diversity, carbon stock, eco-tourism, and income generation for local communities over the next three years.

Bottomline

According to the latest travel and pilgrimage sector budget for 2023 – 2024, the Indian government has shown huge interest to boost the tourism industry within the country for domestic and international tourists. So there will be an abundance of opportunities to travel to a country that is popular for its rich culture, religion, languages, and so many other things. In fact, you can also leverage the benefits of government schemes. For instance, if you are traveling with students, then don’t forget to book airline tickets for students to access special discounts or benefits. In case you are traveling from abroad to India and need to book tickets to India, then always prefer to pre-book to get the best deals. This trick not only helps to save money but also assists in pre-planning. So you can plan the entire trip to India and add more joy to your tour and journey.

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