PM Gati Shakti scheme, e-passports with chips & ECLGS initiative: Budget 2022 is a mixed bag for travel industry
Many experts believe the Budget didn't include any special relief to the sector.
By ET Online | Updated:
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The futuristic Union Budget 2022 has shown positive sentiment towards infrastructure, technology, skill development and healthcare, but the travel and tourism industry experts have a mixed reaction to the Finance Minister Nirmala Sitharaman's financial plan.
The travel and tourism industry is one of the sectors which bore the brunt of two consecutive years of the pandemic. Many experts expressed disappointment as the Budget didn't include any special relief to the sector.
Madhavan Menon, Managing Director of Thomas Cook (India), feels the Budget 2022 was a dampener for the travel and tourism industry. "From the Travel & Tourism perspective, the Budget has been disappointing," he shared.
He said that a stimulus to the sector that is a key contributor to India's GDP and brings in valuable foreign exchange earnings would have created significant value in supporting the country’s road to recovery and growth.
Also read: In her shortest-ever Budget speech, Nirmala Sitharaman invokes ‘Mahabharata’, says tax collection in line with ‘dharma’
According to Indiver Rastogi, President and Group Head, Global Business Travel at Thomas Cook (India) and SOTC, the Budget did not provide specific assistance to the travel and tourism sector.
With the aviation sector being among the worst hit due to COVID, Rastogi had anticipated tax concessions through reduction in Aviation Fuel Price excise duty and allocation of concessional finance for airlines to help recover from the losses incurred during the pandemic. "Such considerations from the government could have reduced costs which in turn would have resulted in revival/recovery of the sector."
"The Budget made no reference to the industry's recommendations to aid revival, including rationalisation of taxes (a complete GST holiday, exemption of TCS on outbound tours, reduction in indirect taxes), removal of SIES benefit capping of Rs 5 crore," he said.
However, on the brighter side, Menon said that the hospitality sector got limited relief with the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023, with an expansion by Rs 50,000 crore to a total of Rs 5 lakh crore.
SOTC Travel Managing Director Vishal Suri also said that the ECLGS scheme for the hospitality sector will benefit the travel and tourism industry. He also added that the PM Gati Shakti plan - focusing on roads, railways, airports, ports & waterways - will be the key drivers of the domestic travel economy. "The national ropeways development plan comes as a positive move as it will aid ease in commuting and provide seamless access which will contribute significantly to the tourism industry," he explained.
Online bus ticket booking IntrCity CEO and co-founder Manish Rathi welcomed the government's commitment to expand the national highway network by 25,000 kilometres this fiscal year. "The allocation of Rs 20,000 crore to the National Highway System shows the government's intention to revive and transform the beleaguered travel and transport industry," he said
Rathi also lauded Sitharaman's aim to improve road connectivity by redesigning the roads in hilly areas under the Parvat Mala initiative, which will improve connectivity for commuters.
"It is a good sign that the government is inclined to strengthen and support public transport infrastructure in urban areas and allocate funds through low-interest loans to small travel operators. These would help us expand our SmartBus fleet's presence deep inside India's heart and provide comfortable, convenient, and safe mobility solutions in Tier 2 and Tier 3 cities," he added.
Also Read: Budget 2022: 'Incredible ... Jai Ho!' Paytm, Snapdeal bosses give thumbs-up to CBDC, hail FM's digital rupee announcement
Sharing his views about the e-passport with embedded chips that will roll out this financial year, Suri said that SOTC Travel welcomes the futuristic technology announced during the Budget. "It is a significant technological development and will pave the way towards secure, seamless, and contactless travel," he added.
The SOTC boss further said that the e-passports will promote security and facilitate international border crossings for Indian citizens. It further helps deter identity theft, forgery, tampering and will prove to be beneficial for Indian travellers as well as authorities while streamlining immigration process.
Online travel portal ixigo Group CEO and co-founder Aloke Bajpai also is hopeful to see international travel recover soon despite the Omicron variant, thanks to the new tech development. "The e-passports will boost security and enhance the convenience of international travellers by cutting down long queues at immigration counters. This will help support a faster revival of international travel in a pandemic-driven environment,” he added.
Travel Distribution platform TBO.com spokesperson feels the issuance of e-passport with embedded chips will ease international travel and facilitate more people to travel abroad. "The launch of the issuance of e-passport with embedded chips is a welcome move for the travel and tourism industry," he said.
Rastogi also looks forward to the government’s continuous focus on increasing connectivity by building new airports across Indian states.
"The issuance of e-passports will positively impact the travel sector, make oversees travel more convenient and enhance international travel growth by digitally upgrading the process," he added.
Talking about the railways, he said the introduction of 400 Vande Bharat trains in the next three years will assist in augment online train booking in the coming years.
ixigo's co-founder Group CPTO Rajnish Kumar also called the new-gen Vande Bharat trains as the new era for Indian railways. He said that better efficiency and passenger experience will help boost tourism growth.
"This can help railways become more competitive and attract budget travellers currently opting for low-cost airlines or road travel by providing cost-competitive, faster and premium services," he added.
The travel and tourism industry is one of the sectors which bore the brunt of two consecutive years of the pandemic. Many experts expressed disappointment as the Budget didn't include any special relief to the sector.
Madhavan Menon, Managing Director of Thomas Cook (India), feels the Budget 2022 was a dampener for the travel and tourism industry. "From the Travel & Tourism perspective, the Budget has been disappointing," he shared.
He said that a stimulus to the sector that is a key contributor to India's GDP and brings in valuable foreign exchange earnings would have created significant value in supporting the country’s road to recovery and growth.
Also read: In her shortest-ever Budget speech, Nirmala Sitharaman invokes ‘Mahabharata’, says tax collection in line with ‘dharma’
According to Indiver Rastogi, President and Group Head, Global Business Travel at Thomas Cook (India) and SOTC, the Budget did not provide specific assistance to the travel and tourism sector.
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With the aviation sector being among the worst hit due to COVID, Rastogi had anticipated tax concessions through reduction in Aviation Fuel Price excise duty and allocation of concessional finance for airlines to help recover from the losses incurred during the pandemic. "Such considerations from the government could have reduced costs which in turn would have resulted in revival/recovery of the sector."
"The Budget made no reference to the industry's recommendations to aid revival, including rationalisation of taxes (a complete GST holiday, exemption of TCS on outbound tours, reduction in indirect taxes), removal of SIES benefit capping of Rs 5 crore," he said.
However, on the brighter side, Menon said that the hospitality sector got limited relief with the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023, with an expansion by Rs 50,000 crore to a total of Rs 5 lakh crore.
SOTC Travel Managing Director Vishal Suri also said that the ECLGS scheme for the hospitality sector will benefit the travel and tourism industry. He also added that the PM Gati Shakti plan - focusing on roads, railways, airports, ports & waterways - will be the key drivers of the domestic travel economy. "The national ropeways development plan comes as a positive move as it will aid ease in commuting and provide seamless access which will contribute significantly to the tourism industry," he explained.
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Online bus ticket booking IntrCity CEO and co-founder Manish Rathi welcomed the government's commitment to expand the national highway network by 25,000 kilometres this fiscal year. "The allocation of Rs 20,000 crore to the National Highway System shows the government's intention to revive and transform the beleaguered travel and transport industry," he said
Rathi also lauded Sitharaman's aim to improve road connectivity by redesigning the roads in hilly areas under the Parvat Mala initiative, which will improve connectivity for commuters.
ADVERTISEMENT
"It is a good sign that the government is inclined to strengthen and support public transport infrastructure in urban areas and allocate funds through low-interest loans to small travel operators. These would help us expand our SmartBus fleet's presence deep inside India's heart and provide comfortable, convenient, and safe mobility solutions in Tier 2 and Tier 3 cities," he added.
Also Read: Budget 2022: 'Incredible ... Jai Ho!' Paytm, Snapdeal bosses give thumbs-up to CBDC, hail FM's digital rupee announcement
Sharing his views about the e-passport with embedded chips that will roll out this financial year, Suri said that SOTC Travel welcomes the futuristic technology announced during the Budget. "It is a significant technological development and will pave the way towards secure, seamless, and contactless travel," he added.
The SOTC boss further said that the e-passports will promote security and facilitate international border crossings for Indian citizens. It further helps deter identity theft, forgery, tampering and will prove to be beneficial for Indian travellers as well as authorities while streamlining immigration process.
Online travel portal ixigo Group CEO and co-founder Aloke Bajpai also is hopeful to see international travel recover soon despite the Omicron variant, thanks to the new tech development. "The e-passports will boost security and enhance the convenience of international travellers by cutting down long queues at immigration counters. This will help support a faster revival of international travel in a pandemic-driven environment,” he added.
Travel Distribution platform TBO.com spokesperson feels the issuance of e-passport with embedded chips will ease international travel and facilitate more people to travel abroad. "The launch of the issuance of e-passport with embedded chips is a welcome move for the travel and tourism industry," he said.
Rastogi also looks forward to the government’s continuous focus on increasing connectivity by building new airports across Indian states.
"The issuance of e-passports will positively impact the travel sector, make oversees travel more convenient and enhance international travel growth by digitally upgrading the process," he added.
Talking about the railways, he said the introduction of 400 Vande Bharat trains in the next three years will assist in augment online train booking in the coming years.
ixigo's co-founder Group CPTO Rajnish Kumar also called the new-gen Vande Bharat trains as the new era for Indian railways. He said that better efficiency and passenger experience will help boost tourism growth.
"This can help railways become more competitive and attract budget travellers currently opting for low-cost airlines or road travel by providing cost-competitive, faster and premium services," he added.
The one-and-a-half hour long Union Budget 2022 speech was full of futuristic dreams and high on technology.
Nirmala Sitharaman's second pandemic Budget came as a ray of shining hope for many, but also dampened expectations of some manufacturers.
From jewellery to mobile phones and more, many items will get cheaper this year, while a number of products, especially our beloved umbrella, will burn a hole in your pocket.
Here’s a look at all the products that will become dearer or cheaper in the months ahead.
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