The union interim budget 2024 unveiled by Finance Minister Nirmala Sitharaman on February 1 , 2024, in Lok Sabha has left the Travel Agents and Tour Operators Association of India (TAAI) disheartened, as it fails to address key concerns and challenges faced by the travel and tourism sector.
According to TAAI, despite numerous representations made to the Finance Ministry regarding ease of doing business, particularly regarding GST, TCS, and other industry challenges, the interim budget overlooks these pressing issues. The imposition of Tax Collected at Source (TCS) on Overseas Tour Programme Packages has particularly hit travel agents hard, rendering them non-competitive and affecting consumer liquidity.
While the budget includes announcements for tourism development and infrastructure in regions like the North East and island destinations such as Lakshadweep, TAAI believes that the budget should have paid more attention to the concerns of travel agents and tour operators, who play a crucial role in the development and promotion of tourism across various segments.
Despite the positive strides in the aviation sector, with an increase in UDAN and overall growth, TAAI notes a lack of acknowledgement or directives addressing airlines going bankrupt. The association has submitted a document outlining the need to protect the interests of consumers, travelers, and travel agents in the event of airline bankruptcies, which have led to significant financial losses.
The finance minister underscored the importance of promoting tourism in India by announcing a framework for rating iconic tourist centres based on the quality of facilities and services. She added that long-term interest-rate loans will be provided to states for comprehensive development and branding of these centres, fostering domestic tourism and attracting foreign visitors. Industry leaders and stakeholders welcomed the government’s initiatives and shared their reactions on the interim budget with ETTravelWorld. Read more…
While acknowledging the long-term benefits of the budget’s focus on tourism infrastructure and development, TAAI highlights the immediate need for measures to benefit the trade. The association appreciates the government’s emphasis on promoting spiritual tourism and the development of transportation infrastructure, including airports, rail corridors, roads, and ports, which will facilitate last-mile connectivity and long-term growth.However, TAAI stresses that the promotion of MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism as a prime focus area requires adequate infrastructure, which may take several years to develop.
In conclusion, TAAI expressed disappointment over what it perceives as the neglect of the travel trade in the interim budget, calling for greater attention to industry concerns and challenges to foster sustainable growth and development in the sector.
