The anticipation leading up to the Union Budget 2026 regarding India’s hospitality and tourism sector was palpable. As highlighted in our pre-budget analysis, the industry, having proved its resilience, was looking for concrete policy interventions to transition from recovery to robust growth. The Finance Minister’s speech yesterday laid out a clear, long-term vision, recognizing tourism as a crucial pillar for employment and economic progression. However, for stakeholders hoping for immediate fiscal oxygen, the budget proved to be a mixed bag of strategic intent and missed opportunities.
The government’s commitment to the sector is evident in its macro-level approach. The significant allocation toward enhancing multi-modal connectivity—particularly the expansion of railway corridors and the development of new airports in tier-2 and tier-3 cities—is a welcome move. This directly addresses the long-term need to unlock the hinterland of “Incredible India,” facilitating easier access to domestic destinations.
Furthermore, the budget’s focus on developing iconic tourist centers to global standards, supported by long-term interest-free loans to states, aligns well with the industry’s desire for destination improvement. The explicit mention of promoting spiritual tourism and island development indicates a structured approach to tapping into high-potential segments.
However, against the backdrop of high expectations, the silence on critical fiscal demands was deafening for many industry leaders. The primary pre-budget expectation—granting full infrastructure status to the entire hospitality sector—remained unaddressed. Without this blanket status, the access to long-term, lower-cost borrowing needed for aggressive hotel expansion into untapped markets remains constrained.
Similarly, the lingering issues surrounding taxation were left untouched. While GST rates are typically the domain of the GST Council, the industry hoped for a budgetary signal regarding the restoration of Input Tax Credit (ITC) for the restaurant sector. The continued absence of ITC squeezes margins and disincentivizes formalization in the food and beverage segment. Furthermore, while the government emphasized sustainable development, specific fiscal incentives such as “Green Tax Benefits” for hotels adopting eco-friendly practices, which were high on the wish list, did not find a mention.
On a positive note for outbound travel operators, the rationalization of the Tax Collected at Source (TCS) regime on overseas tour packages offers a slight breather, potentially improving sentiment for international travel booking.
The government has also rightly identified skilling as a priority. The announcement of new initiatives to train youth for the hospitality sector under the Skill India Mission is a crucial step toward bridging the severe post-pandemic talent gap, ensuring that service standards match infrastructure growth.
Budget 2026 is a forward-looking document that successfully embeds tourism into India’s broader economic strategy for 2047. The focus on connectivity and destination development provides strong building blocks for the future. However, for the sector to truly accelerate right now, the critical immediate hurdles of financing costs and tax structures still need resolution. The industry now must leverage the strategic wins while continuing to advocate for the essential fiscal reforms that remain elusive.
Industry Leaders Budget 2026 Reaction:
Anil Chadha, Managing Director, ITC Hotels Limited:
The Budget’s renewed focus on tourism is a strong vote of confidence in an industry that creates livelihoods at scale, supporting local entrepreneurs, artisans, and communities across the tourism value chain. The proposed upgradation of National IHMs and the NCHMT (National Council for Hotel Management and Catering Technology), alongside structured guide skilling initiatives, will significantly strengthen service quality and global competitiveness in hospitality. The emphasis on medical tourism further positions India as a trusted destination combining care, capability and hospitality. Equally transformative is the push towards a digital and AI-enabled tourism knowledge framework, which will enhance discoverability, planning and destination management. The Budget’s ‘Growth Connectors’—seven high-speed rail corridors will enhance connectivity between western, southern & eastern parts of the country. The focus on adventure tourism, including trekking, hiking and wildlife trails along with the development of Buddhist circuits across North-East states highlights the importance of responsible, experience-led growth that protects the very destinations travellers seek. Together, these measures present a timely opportunity to build India’s tourism advantage on quality, authenticity and sustainability.
Kush Kapoor, CEO of Roseate Hotels & Resorts:
The Union Budget’s strong focus on hospitality, tourism, skilling and destination development is a welcome and timely step for our sector. The proposed National Institute of Hospitality will play a critical role in creating a future-ready talent pipeline, ensuring that hotels have access to skilled professionals aligned with global service standards. Initiatives such as structured training for tourist guides, the national digital destination registry and the emphasis on heritage, adventure and eco-tourism will directly enhance destination appeal, improve guest experiences and drive longer stays. For hotels, this translates into better storytelling, more immersive experiences for guests and a stronger ecosystem that supports sustainable growth and foreign exchange earnings.
Prateek Shukla, Co-Founder and CEO, Masai:
The Union Budget 2026 is good news for the young workforce. Families will save money and more people will be able to get a good education as the TCS on education and medical costs is lowered from 5% to 2%. This is especially important now that everyone needs to learn new skills.
The government’s strong focus on technology-driven growth stands out the most. The emphasis on artificial intelligence, emerging technologies, and industry-led research aligns well with the realities of today’s job market, where roles are evolving faster than traditional education systems can keep pace. Initiatives like the proposed ‘Education to Employment and Enterprise’ Standing Committee acknowledge a long-overdue need to bridge the gap between degrees and real-world employability, especially in the services and tech sectors.
Future-ready jobs and India’s ability to compete internationally in high-value digital services will be greatly aided by the ongoing push for structured skilling, training facilities, and innovation-driven ecosystems. The introduction of ISM 2.0 with an outlay of 40,000 crores will enhance India’s long-term aspirations in the semiconductor industry, but this budget’s greater significance comes from its dedication to developing competent personnel, encouraging creativity, and creating long-term job opportunities for the upcoming generations.
Viksit Bharat is built when education stops being a credential factory and becomes a talent pipeline. Budget 2026 should fund that shift.
Shwetank Singh, MD & CEO, Chalet Hotels:
The Union Budget 2026 represents a significant commitment to elevating India’s tourism and hospitality ecosystem, and we are genuinely encouraged by the Finance Minister’s comprehensive vision for the sector. The upgrade of NCHMCT into a National Institute of Hospitality is transformative: it will create a world-class talent pipeline that bridges industry needs with academic excellence, directly addressing the skilled manpower requirements of our expanding sector.
The national digital destination registry and upgrade of 15 archaeological sites into cultural destinations demonstrate a sophisticated understanding of experiential tourism infrastructure. These initiatives, combined with ecologically sustainable mountain trail development, position India to capture diverse tourism segments from heritage to adventure to wellness.
However, our long-standing ask to grant comprehensive infrastructure status to the sector continues to remain a distant dream.
The sector remains focused on three priorities that will unlock exponential scale: comprehensive infrastructure status recognition beyond the current 50 destinations to enable equitable capital access across all hospitality projects; placement of tourism in the concurrent list to strengthen Centre-state policy coordination; and GST rationalization to enhance competitiveness. With India targeting a $1 trillion GDP contribution from services and 64 million jobs by 2035, these structural enablers will amplify the impact of today’s programmatic investments.
Vicky Bachani, Co-Founder, Jugnu, Goa:
India’s tourism and hospitality sector needs institution-building and not just incentives. The proposed National Institute of Hospitality can play a defining role in creating future-ready professionals who understand destination-led hospitality, regional cultures, and experiential dining. For tourism and hospitality markets like Goa, which attract a strong international tourist audience, what we offer directly shapes India’s global tourism image and contributes to the economy. In such markets, success depends on authenticity, skill, and local relevance rather than replication. A structured bridge between academia, industry, and government will help raise standards, encourage innovation, and ensure that tourism growth is sustainable, meaningful, and globally competitive.
Jigar Sanghvi, Co-Founder, Epitome:
The proposed National Institute of Hospitality addresses a long-standing gap between classroom learning and the realities of running hospitality businesses. For cities like Pune and Mumbai, which are growing as food culture and lifestyle hubs, this initiative can create professionals who are operationally strong, creatively confident, and business aware. By acting as a bridge between academia, industry, and government, the institute has the potential to professionalise the sector, strengthen service standards, and support the next phase of sustainable growth in India’s hospitality ecosystem.
Sanat Hooja, Partner, Machan Resorts:
Budget 2026 sends a clear signal that tourism growth must go hand in hand with environmental responsibility. The focus on nature-based tourism, ecological trails, heritage conservation, and experiential destinations reflects a conscious shift towards building tourism that is mindful, inclusive, and future-ready.
Investments in connectivity, destination skilling, and digital documentation of cultural and natural assets will help disperse tourism beyond crowded centres, creating balanced growth for both established and emerging destinations.
For resorts operating in sensitive ecosystems, such measures encourage thoughtful development rather than volume-led expansion.
The continued emphasis on sustainability-driven initiatives is encouraging; however, streamlined licensing processes and clearer, single-window approvals will be critical in enabling both small and large establishments to adopt eco-friendly infrastructure efficiently.
Greater institutional support for sustainable practices will further empower responsible operators to invest with confidence.
Overall, the Budget lays the groundwork for a more resilient tourism ecosystem—one that values conservation, community engagement, and long-term impact as much as economic growth.
Rahool Macarius, Market Managing Director, Eurasia, Wyndham Hotels & Resorts
We appreciate the government’s focus in the Union Budget 2026, which reinforces India’s commitment to strengthening the hospitality and tourism sector. By reimagining heritage sites, supporting Buddhist circuits, and enhancing connectivity through initiatives such as the Green High-Speed Rail Network, the Budget will increase tourism demand and attract more visitors to culturally, historically, and spiritually significant cities. This, in turn, will strengthen tourism in Tier-II and Tier-III regions, providing a strong platform for hospitality brands to expand alongside India’s growth trajectory. Initiatives such as world-class hospitality talent hubs, professional guides, and structured skilling programs are expected to elevate visitor experiences, extend stays, and support local economies. Coupled with digital destination initiatives and sustainable eco-trails, these measures will enhance service standards, create dignified livelihood opportunities for young talent, and give a meaningful boost to the overall growth and competitiveness of India’s hospitality sector.”
Richa Adhia, Managing Director, Eight Continents Hotels & Resorts
We appreciate the government’s focus in the Union Budget 2026 on creating dignified livelihood opportunities and nurturing young talent within India’s hospitality sector. Investments in professional guides, world-class hospitality talent hubs, and skill development initiatives will raise service standards and strengthen local employment. Alongside these workforce measures, efforts to reimagine heritage sites, promote digital destinations, expand eco-trails, develop sustainable adventure and medical tourism are expected to boost visitor engagement and attract global travellers. Together, these initiatives signal a forward-looking and positive Budget for the hospitality industry.
Deepak Chhabra, Founder – Holy Hotels:
The Union Budget 2026–27 signals a transformative moment for India’s tourism and hospitality sector, combining infrastructure growth with a focus on experience-led and sustainable travel. With a record ₹12.2 trillion capital expenditure, and over ₹1.5 lakh crore allocated to transport and multimodal connectivity, the Budget significantly enhances access to destinations, unlocking opportunities for new tourism circuits and regional hospitality growth.
Initiatives such as wildlife and bird-watching themed travel routes, improved rail connectivity, and institutional support for hospitality talent strengthen the link between infrastructure, skills, and local tourism ecosystems. For Holy Hotels, this integrated approach can boost tourist footfall and local economic participation by an estimated 15 – 20% over the coming years, supporting longer stays, responsible travel, and meaningful engagement with communities beyond metro hubs.
For hospitality providers such as Holy Hotels, these measures, combined with better GST compliance and efficiency through digitalisation, could reduce tax-related operational costs by 2–3 percent, enabling longer stays, responsible travel, and enhanced economic participation for local communities.
Karan Agarwal, Director, Cox & Kings:
What stood out for me in this Budget is that it doesn’t treat travel as a one-sided story. Outbound travel needed a course correction, and cutting TCS on foreign tour packages to 2% does exactly that, it takes away a friction that travellers were feeling every time they planned a trip. On the inbound side, the intent is clearly longer-term. What stands out is the emphasis on cultural and experiential travel, whether through developing archaeological sites, strengthening Buddhist circuits, or building skilled local guide networks, tells us the focus is finally shifting to how India is experienced, not just how many people arrive. If this is executed well, it could move Indian tourism from being crowded and transactional to curated and experience-led.
Shaaz Mehmood, Founder, Medijourn Solutions Private Limited:
I commend Finance Minister Nirmala Sitharaman on the Union Budget 2026–27 for recognising the strategic importance of medical tourism in India’s healthcare growth story. The announcement of five regional medical tourism hubs is a strong and timely step that will enhance India’s position as a global medical value travel destination. By integrating modern healthcare with AYUSH systems, diagnostics and rehabilitation, the budget lays the foundation for a more coordinated and patient-centric ecosystem. The emphasis on private sector participation and strengthening healthcare capacity will improve service delivery and scalability. While further policy support over time can accelerate global patient inflows, the budget clearly demonstrates a forward-looking approach to building a competitive and resilient medical tourism ecosystem that contributes to economic growth.”
India’s MVT sector has grown steadily over the years, and cities like Hyderabad, Delhi, Chennai, Mumbai and Bengaluru are already well-positioned to scale as global healthcare destinations. With the right execution and private-sector partnership, this initiative can significantly strengthen India’s leadership in global medical tourism.
Chirag Agarwal, Co-founder & CEO, TravClan:
The Union Budget 2026 takes a constructive step towards addressing some long-standing operational challenges faced by outbound travel businesses. The reduction of TCS on overseas tour packages to 2% is a welcome move and will ease immediate cash-flow pressure for both travellers and agents, particularly in high-volume, cross-border transactions.
Effective implementation will now be critical. Clear guidance on refund timelines, reconciliation processes and system readiness will determine how quickly this relief translates into day-to-day business operations. Beyond taxation, access to formal credit for booking-led travel businesses remains an important gap, as traditional lending frameworks still do not fully account for advance collections and extended settlement cycles.
As outbound demand continues to expand from non-metro markets, sustained policy focus on international connectivity, efficient payment systems and regulatory simplicity will be important to support long-term growth. Overall, the Budget signals positive intent, and targeted follow-through can further strengthen the operating environment for Indian travel businesses.
Aditya Sanghi, CEO of Hotelogix:
The Union Budget 2026–2027 sends a clear signal that the Indian tourism and hospitality industry is one of the most important drivers of jobs and growth. Enabling this industry through initiatives such as a National Institute of Hospitality, talent upskilling, and digital infrastructure are welcome steps. However, execution on the ground will define success in the long run. It must empower homegrown midscale hotels in Tier II/III markets to access modern solutions and a skilled workforce easily to thrive sustainably. At Hotelogix, we see this as a pivotal moment to support hotels in this segment with cloud-led, scalable technology that helps them ensure smarter operations and deliver consistently better guest experiences.
Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts:
The Union Budget 2026 reflects a clear thematic shift in India’s tourism agenda from destinations to purpose-led journeys. It positions tourism as a multi-dimensional engine anchored in wellness and healing, spiritual and cultural circuits, nature and conservation-led travel, adventure and mountain ecosystems, and stronger regional connectivity that enables exploration beyond metros.
Equally significant is the focus on strengthening the sector’s foundations through hospitality education and skilling, structured upskilling of guides, and the creation of a national digital knowledge grid—measures that can raise service standards, enhance visitor experience, and support sustainable destination development.
Initiatives spanning Buddhist circuits, sustainable Himalayan hiking trails, medical and wellness tourism, Ayurveda, heritage-led travel, and conservation-linked trails such as Odisha’s turtle nesting corridors together create the right ecosystem for responsible growth where communities, travellers and destinations all benefit. Overall, the Budget creates a strong tailwind for experience-led hospitality and tourism models built around circuits, longer stays and more meaningful travel.
Sarbendra Sarkar, Managing Director & Founder, Cygnett Hotels & Resorts
Budget 2026 presents a comprehensive and future-ready vision for tourism and hospitality, placing India firmly on a high-growth trajectory. The focus on building a world-class hospitality talent hub, along with professional guide training, will significantly raise service standards and create a skilled workforce capable of delivering globally benchmarked experiences. Digital destination platforms and creator-led promotion signal a modern, data-driven approach to tourism marketing that will enhance visibility and demand across regions.
The reduction of TCS on overseas tour packages to 2 percent is a welcome move that improves travel affordability and sentiment, while the rollout of green high-speed rail corridors will redefine inter-city mobility. Faster, sustainable rail connectivity will encourage shorter, more frequent trips and unlock new demand for city and regional hospitality. Enhanced last-mile access through initiatives such as seaplane connectivity further strengthens destination reach.
Equally impactful is the emphasis on eco-friendly mountain trails, heritage site revitalisation, Buddhist circuits and Purvodaya-led tourism development. These initiatives balance conservation with livelihood creation and help diversify tourism beyond traditional markets. The growing focus on medical tourism further positions India as a competitive global destination.
For Cygnett Hotels and Resorts, this integrated policy push creates a strong foundation for expansion across business, leisure and emerging destinations. Budget 2026 reinforces confidence in India’s tourism growth story, driven by connectivity, capability and conscious development.”
Sumit Mitruka, Founder & CEO, Summit Hotels & Resorts
Improved high-speed rail connectivity to Siliguri is a landmark step for the Northeast, with the potential to fundamentally reshape how the region is discovered and experienced. Though bullet train, faster and more reliable access will reduce travel fatigue, encourage longer stays, and make destinations across Sikkim, North Bengal and the wider Northeast more attractive for both domestic and international travellers. For the hospitality sector, this means stronger seasonality balance, improved viability for off-beat locations, and greater confidence for long-term investment in responsible tourism infrastructure.
Equally significant is the announcement around the development of new trekking routes. The Northeast has some of India’s most pristine landscapes, but much of this potential has remained untapped due to limited access and fragmented planning. Structured trekking corridors, developed with safety, sustainability and local participation at the core, can unlock high-value experiential tourism while preserving ecological integrity. Well-planned trails will generate livelihoods for local guides, porters and homestay owners, while also dispersing tourist footfall beyond a few overcrowded destinations.
Together, high-speed connectivity and curated adventure tourism create a powerful ecosystem, one that supports regional economies, promotes cultural exchange, and positions the Northeast as a year-round experiential destination rather than a seasonal getaway.
Dr. Vikram Kamat, Founder of Vikram Kamats Hospitality Limited
The Union Budget 2026 clearly positions tourism and hospitality as a key pillar of India’s employment and economic growth strategy, a move we strongly welcome. Recognising tourism as a powerful driver of job creation, foreign exchange earnings and local economic development reflects a clear understanding of the sector’s multiplier impact across regions.
Also, strongly aligned with Budget 2026, particularly the decision to establish a National Institute of Hospitality by upgrading the National Council for Hotel Management and Catering Technology—a progressive step that will strengthen hospitality education and build a future-ready workforce. In line with this vision, we had already launched KHAS Academy (Kamats Hospitality Academy of Skill) in 2022, a dedicated training initiative focused on making youth job-ready for the hospitality sector. With over 80% practical, hands-on training, strong mentorship and real industry exposure, KHAS has been designed to bridge the gap between education and industry needs. As India’s first “Earn and Learn” hospitality programme, offering a monthly stipend of ₹7,000, KHAS is shaping the next generation of hospitality leaders and providing direct employment opportunities to KHAS graduates across our VITS Hotels & Resorts and Kamats restaurant verticals.
Additionally, the National Destination Digital Knowledge Grid and the push for eco-tourism, trekking and wildlife trails will surely modernise destination management and drive responsible, inclusive growth.
MRS JYOTI MAYAL, Chairperson, THSC (Travel Hospitality Skill Council):
DISAPPOINTING FOR THE TRAVEL INDUSTRY
I am pleased to welcome Budget 2026 and delighted to see that several initiatives we had proposed during our meeting with the Finance Minister have been incorporated. The proposal to set up the first-ever National Institute of Hospitality, which I have been advocating for over time and had discussed with the Finance Minister during budget consultations. This initiative will be transformative for hospitality education and skill development, creating a future-ready workforce for India’s growing tourism and hospitality sector.
Reducing TCS to 2% is a welcome, pro-growth move that eases compliance and boosts liquidity, I have been advocating for this since I was the TAAI President & reiterated this in our November meeting with FM*, this will make international travel more affordable and bring in ease of doing business is a very positive move, it will boost tourism, encourage global exposure, and benefit both travelers and the travel industry. Coupled with a focus on eco-friendly initiatives and enhanced tourism connectivity, the budget opens new avenues for travel service providers, driving sustainable growth and enriched experiences for travellers.
For tourism, the focus on positioning India as a global hub for affordable, high-quality healthcare is visionary. Improved last-mile connectivity to remote destinations will boost tourism, while strengthening spiritual tourism in the North East will attract global pilgrims and foster cultural exchange.
The pilot to train 10,000 guides at iconic destinations, supported by IIMs, reflects a strong commitment to grassroots skilling and enhancing visitor experiences.
Infrastructure development is another positive step, laying the foundation for improved connectivity, economic growth, and long-term sectoral development.
Although the budget includes several positive measures, it’s disappointing that the Tourism Ministry has again not received dedicated marketing funds. India must urgently strengthen its marketing presence, as other countries are investing heavily to attract and position themselves as top tourist destinations.
Sandeep Basu, CEO. OPO Hotels and Resorts:
The Union Budget’s continued focus on tourism infrastructure, connectivity, and destination development is a strong positive for the hospitality sector. Enhanced investment in transport, regional connectivity, and public-private partnerships will improve access to emerging destinations and boost domestic travel. Measures supporting ease of doing business and employment generation will further strengthen the sector’s growth momentum. Overall, the Budget reflects a long-term vision to position tourism as a key driver of economic growth while encouraging sustainable and quality-led hospitality development.”
Ritwik Khare, Founder and CEO of ELIVAAS
Budget 2026 outlines a strong, growth-driven vision for tourism and hospitality, with infrastructure, mobility and affordability working together to expand demand. The announcement of seven high-speed rail corridors is particularly significant, as faster rail connectivity will fundamentally change how travellers plan their trips. Reduced travel time encourages more frequent, shorter holidays and makes weekend and mid-week leisure travel far more viable across regions. High-speed rail also offers a cost-effective alternative to air travel, opening the market to a wider customer base that values speed without premium pricing.
The reduction in overseas tour package TCS from 5 percent to 2 percent is another positive step, as it improves overall travel sentiment and disposable spending, indirectly benefiting domestic hospitality as travellers balance international and local experiences. Combined with improved infrastructure and destination development, these measures will increase travel velocity and diversify travel patterns beyond peak seasons.
For ELIVAAS, this creates meaningful opportunities. Faster connectivity and shorter travel cycles align well with the growing preference for private, well-managed villas and flexible stay formats. Guests seeking quick, high-quality getaways will increasingly look for trusted accommodation options that offer comfort, privacy and curated experiences. Budget 2026 strengthens the ecosystem needed to support this shift, enabling sustained demand growth, wider geographic expansion and a more resilient, experience-led hospitality market.”
Bhavik Sheth, Chief Operating Officer (COO), Evoke Experiences
From a Gujarat lens, the post-Budget focus on upgrading Indus Valley Civilisation sites like Dholavira and Lothal is a powerful step towards positioning the state as a global heritage destination. These sites are not just archaeological landmarks; they are living narratives of India’s 5,000-year-old urban intelligence, sustainability practices and civic planning. Structured investment in interpretation centres, visitor infrastructure and storytelling will allow global travellers to engage more meaningfully with this legacy, rather than experiencing it as static ruins.
For experiential hospitality brands like us, this opens up opportunities to curate immersive journeys that blend history, landscape and local communities, from guided archaeological walks and cultural immersions to responsible stays that benefit nearby regions. Gujarat has long had strong cultural assets; this announcement elevates its historical depth on the global stage. If executed thoughtfully, the upgrade of Dholavira and Lothal can redefine heritage tourism in India, moving it towards education-led, experience-driven and globally benchmarked offerings.
Pragya Adiraj – Founder of Joy n Crew:
The Union Budget 2026 signals a clear repositioning of tourism as a structured, year-round economic driver rather than a seasonal activity. Initiatives such as the National Institute of Hospitality, the large-scale training of 10,000 tourist guides in collaboration with IIMs, and the proposed Digital Knowledge Grid reflect a long-term commitment to professionalising tourism education, service quality, and destination planning.
The reduction of TCS on overseas tour packages provides immediate cost relief for travellers and is likely to stimulate demand. At the same time, targeted investments in Buddhist circuits across the North-East, experience-led development of archaeological sites, medical tourism hubs, scenic mountain railways, eco-tourism trails, and astro-tourism diversify India’s tourism portfolio beyond conventional circuits. Collectively, these measures strengthen tourism’s role in employment generation, regional development, and cultural preservation, while creating a more resilient and inclusive travel ecosystem for the future.
Ambika Saxena, CEO, TWH Hospitality:
The Union Budget signals a clear shift in positioning tourism as a core economic growth driver rather than a peripheral sector. The structured development of 50 destinations in partnership with states, along with improved connectivity to regions such as Himachal Pradesh and Kashmir, will expand India’s viable hospitality markets beyond established hubs. Equally critical is the proposed National Institute of Hospitality, which addresses the sector’s most pressing challenge- skilled manpower. With stronger destination infrastructure and a more robust talent pipeline, the industry gains better long-term demand visibility, investment confidence, and the ability to scale sustainably.
Yogesh Mudras, MD, Informa Markets in India:
The Union Budget 2026 lays out a forward-looking roadmap with a clear focus on infrastructure, economic growth, and better regional connectivity. One of the standout announcements for the sector is the plan to set up a National Institute of Hospitality, a move that could really strengthen India’s tourism and hospitality ecosystem in a meaningful way. By bringing academia, industry, and government onto the same platform, the institute has the potential to create a skilled workforce that matches the evolving expectations of both domestic and international travellers. For hospitality businesses, this could mean higher service standards, smoother operations, and a more reliable long-term talent pipeline. In the bigger picture, initiatives like this tend to build investor confidence, encourage the development of new hotels, resorts, and tourism infrastructure, and further support India’s positioning as a global travel destination. While the industry was also hoping for wider policy measures to make investments easier and simplify operations, this strong push toward skill development still sets a solid foundation for more structured, long-term growth in tourism and hospitality.
Nandini Taneja, Chief Executive Officer, Bhumika Enterprises:
The proposal to establish a National Institute of Hospitality is a timely step for India’s hospitality sector, especially in Tier-2 cities emerging as key travel and business hubs. By bridging academia, industry, and government, the institute can help create a skilled local workforce — critical for the growth of hotels and tourism-led developments. Equally encouraging is the Budget’s push for women-led entrepreneurship through community-owned SHE-Marts, which will give SHG-linked women structured retail access and a pathway to enterprise ownership. This strengthens grassroots economic participation while supporting more inclusive local economies.
Together, stronger talent pipelines and inclusive economic initiatives will enhance service standards, improve operational efficiency, and boost investor confidence, accelerating hospitality-led growth in emerging cities and preparing them for rising domestic and international tourism demand.
Elton Rodrigues, Director, HostMyTrips:
With the Union Budget 2026, the government has signalled a clear intent to support the travel and tourism industry. The reduction in tax collection at source (TCS) on overseas tour packages to a flat 2% from the earlier slabs of 5% and 20% is a much-needed boost for the sector, improving liquidity and encouraging advance planning, especially for curated and experiential travel.
Additionally, the government’s focus is on strengthening domestic tourism through the training of 10,000 certified tourist guides and the development of 15 archaeological and cultural sites. This signals a strong, long-term commitment to building a skilled workforce and positioning India’s heritage as a primary growth force for sustainable tourism growth.
KB Kachru, President, Hotel Association of India (HAI) and Chairman – South Asia, Radisson Hotel Group
Budget 2026-27 reflects a strong focus on accelerating and sustaining economic growth, with a decisive push on infrastructure- both critical drivers for the tourism sector, where growth is closely linked to these factors. The renewed emphasis on the services sector, coupled with the recognition of tourism’s potential to generate employment, boost foreign exchange earnings, and expand local economies, is particularly encouraging.
The Budget’s proposals, including the National Institute of Hospitality, aim to strengthen industry-aligned skilling, research, and leadership development. Infrastructure growth in Tier 2–3 cities, the East Coast Tourism Corridor, and importantly focus on medical-value tourism, are expected to boost hotel viability, diversify India’s offerings, and enhance global competitiveness. Content-creator labs will further amplify India’s tourism story. Industry-specific measures, including the development of new tourist experiences and their enhancement through technology, such as the establishment of the National Destination Digital Knowledge Grid, further signal a forward-looking approach.
Despite the Budget’s positive thrust, a long-standing aspiration of the sector, comprehensive infrastructure recognition, remains unmet. Realizing the sector’s true potential requires key structural reforms: expanding infrastructure recognition beyond the currently designated destinations to ensure equitable access to capital, placing tourism on the concurrent list to strengthen Centre-state policy coordination, and rationalizing GST to enhance competitiveness. These enablers will amplify the impact of current initiatives and provide a strong foundation for sustainable, long-term growth across the tourism sector.
Given the government’s clear commitment to the sector, we look forward to engaging in post-budget discussions on sector specific policies including Marketing India overseas that can translate this intent into tangible outcomes.
HAI remains dedicated to supporting the government’s vision of expanding the tourism economy to 10% of GDP by 2047, and ideally, achieving this milestone even sooner.
Sandeep Arora, Director, Brightsun Travel, India
From an industry standpoint, this Budget addresses three structural gaps that have held Indian tourism back for years: capital access, traveller friction, and product depth. Infrastructure status for hotels changes the economics of hospitality expansion, especially in underserved leisure and pilgrimage circuits where demand already exists but quality inventory has lagged.
The 2% cut in outbound TCS is equally significant; it directly improves cash flow for travellers and removes a psychological barrier that has suppressed discretionary international travel. What stands out most, however, is the shift from volume-led tourism to experience-led growth, through rural stays, heritage activation, and skills development. This could be a strong Budget for infrastructure, service quality, and traveller expectations into a sustainable long-term tourism model.
Aditya Pande, Group Chief Executive Officer, InterGlobe Enterprises:
The Union Budget outlines a strong, forward-looking roadmap toward a Viksit Bharat by 2047. We welcome the government’s continued focus on strengthening India’s travel, tourism, and hospitality ecosystem through improved connectivity, accessibility, and destination infrastructure. The emphasis on skill development, heritage, and ecotourism reflects a deep understanding of the sector’s economic potential. These measures will boost demand, support local economies, and strengthen India’s position as a global hub for high-quality hospitality and travel.
Manjari Singhal, Chief Growth and Business Officer, Cleartrip:
The Union Budget 2026 signals a clear and consistent commitment to strengthening India’s travel and tourism ecosystem. Continued investments in building an integrated network of roads, railways, airports and emerging connectivity like seaplanes will make travel easier, more accessible and better distributed, supporting the next phase of both domestic and inbound tourism growth.
As infrastructure improves access and connectivity, these efforts help travellers feel more confident to explore new regions and experiences. Overall, the Budget reinforces travel and tourism as long-term drivers of jobs, regional development and inclusive growth, and sets the right foundation for India’s inbound and outbound travel story in the years ahead.
Andre Eckholt, Managing Director – Hettich India, SAARC, Middle East & Africa:
The Union Budget 2026 sends a strong and forward-looking signal towards building a Viksit Bharat, with a clear focus on global competitiveness, trade facilitation, and technology-led manufacturing.
The vision to provide tax exemptions on non-India sourced income will help India access critical expertise and accelerate innovation across industrial sectors. Together, these initiatives will play a pivotal role in strengthening legacy industries, boosting advanced manufacturing, and positioning India as a trusted global hub for investment, innovation, and long-term growth.
