Budget 2023 For Travel and Tourism Sector: Key Highlights

In the recent Union Budget 2023-2024, the Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman announced a complete package of tourism development for at least 50 destinations in India.

The destinations will be selected through a challenge mode using an integrated and innovative approach, with a focus on both domestic and foreign tourists. The Finance Minister also proposed the launch of a new app to provide all relevant information about tourist destinations and enhance the tourist experience.

Budget 2023 For the Travel and Tourism Sector

Here are the key highlights announced by the Smt. Nirmala Sitharaman for the travel and tourism industry.

Tourism Development in India

• 50 destinations will be selected for complete tourism development.
• These destinations will be chosen through challenge mode with an innovative approach
• The focus will be on both domestic and foreign tourists.

Tourist Destination App

• A new app will be launched with all the relevant information about tourist destinations.
• Information will include physical connectivity, virtual connectivity, tourist guides, food streets, and tourist security.
• The aim is to enhance the tourist experience.

Domestic Tourism Development

• Sector-specific skilling and entrepreneurship development will be done to achieve the “Dekho Apna Desh” initiative goals.
• Tourism infrastructure and amenities will be provided in border villages under the “Vibrant Villages Programme”.
• “Dekho Apna Desh” is an appeal to middle-class people to prefer domestic tourism over international tourism.

Tourism Schemes

• “Dekho Apna Desh” and “Swadesh Darshan Scheme” are the two initiatives launched for tourism development
• “Unity Mall” will be set up to promote and sell state products and handicrafts
• States will be encouraged to set up Unity Mall in capital cities or tourist centres
• Promotion of tourism will be taken up on mission mode with active participation from states and private-public partnerships

Tourism Potential

• The country has an immense attraction for both domestic and foreign tourists.
• The sector has huge opportunities for jobs and entrepreneurship, especially for the youth.
• The promotion of tourism will be taken up on mission mode with active participation from states and private-public partnerships.

Foreign Remittances and Overseas Tour Program

• TCS (Tax Collection at Source) for foreign remittances and purchase of overseas tour programs will be increased from 5% to 20%.
• This will impact outbound tourism as it will increase the costs for Indians going on holidays abroad.

Eco-tourism

• Wetlands will be promoted for eco-tourism opportunities.
• The “Amrit Dharohar” scheme will be implemented over the next three years to encourage optimal use of wetlands and enhance bio-diversity, carbon stock, eco-tourism, and income generation for local communities.

Bottomline

The government is taking active steps to promote tourism in India, with the launch of various schemes and initiatives such as the “Dekho Apna Desh” initiative and the “Swadesh Darshan Scheme.” The country has immense potential for both domestic and foreign tourists and holds great opportunities for jobs and entrepreneurship, especially for the youth.

The government will promote tourism through mission mode with active participation from states and private-public partnerships. However, the increase in TCS for foreign remittances and overseas tour programs may impact outbound tourism as it will increase the costs for Indians going abroad.