The tourism sector in India is booming at a great pace. It contributes around 9 percent of the country's GDP and generated huge employment opportunities in the country. However, according to the experts and industry leaders, it is still underperforming due to lack of funds and infrastructure. In this year's Union Budget, here are some expectations from the Modi 2.0 government to boost the tourism sector.
1. Provisions in GST rate slabs
The government is expected to bring necessary provisions to accommodate different slabs under a single GST rate slab. Currently, two tax rate slabs - 18 percent and 28 percent are levied on hotel rooms. If these are brought down, it would bring relief to everyone and would increase demand for the sector. Also, delay in GST returns should be avoided to keep the working cycle of the industry intact.
2. Fund allocations in UDAN, HRIDAY, and PRASAD schemes to promote rural tourism
Schemes like UDAN, HRIDAY, and PRASAD are good initiatives to promote and boost regional connectivity. The government should allocate funds and promote it aggressively which will enable more passengers to travel at affordable rates. The government should also focus on educating farmers, villagers in order to boost tourism in the rural sector.
3. Aggressive investment in Infrastructure facilities
According to a report by CARE Ratings, the government needs to aggressively invest in the infrastructure facilities such as air, ground, port infrastructure and tourist service infrastructure to meet the growing demands of tourists.
4. Investments to promote tourism; discover new places
Investments are expected by the government to produce unique marketing campaigns for promoting tourism. Also, schemes and policies need to be introduced to discover new places, offbeat places for tourism.
With inputs from Financial Express