As the Union Budget approaches, Salim Shaikh, Co-Founder of Monday Hotels, has outlined a clear set of expectations aimed at strengthening India’s hospitality and tourism ecosystem while enabling responsible, long-term growth for hotel operators.
Focus on Infrastructure and Ease of Doing Business
Shaikh emphasised the need for increased public investment in tourism infrastructure, particularly last-mile connectivity and urban hospitality development. According to him, smoother access to destinations and better civic infrastructure are essential for positioning India as a competitive global travel market. He also highlighted the importance of simplified licensing processes, single-window clearances, and access to affordable financing, which would allow hotel groups to expand in a more structured and sustainable manner.
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Sustainability, Skills and Capital as Key Priorities
Beyond infrastructure, Shaikh pointed to sustainability as a critical pillar for the sector’s future. Incentives for renewable energy adoption, including solar open access and energy-efficient infrastructure, would help mid-scale and large hotels reduce operating costs while aligning with India’s climate commitments.
He also underscored the need for stronger policy support for hospitality education and skill development to address workforce shortages and improve service quality across the industry. In parallel, measures that attract long-term, patient capital were cited as essential to encourage responsible investment rather than speculative growth.
Tax Clarity and Demand Diversification
Shaikh noted that tax rationalisation and greater GST clarity would improve compliance, ease cash-flow pressures, and ensure that a larger share of tourism revenue is retained within the country. He also called for stronger promotion of emerging and lesser-known leisure destinations to diversify travel demand beyond established hubs, helping distribute economic benefits more evenly across regions.
Additionally, incentives for digital transformation and innovation were highlighted as important tools to enhance operational efficiency and elevate guest experiences in an increasingly competitive market.
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Enabling Sustainable Growth
Shaikh concluded that a balanced, forward-looking Budget could play a decisive role in unlocking the hospitality sector’s potential. With the right mix of infrastructure investment, sustainability support, financial access, and regulatory clarity, the industry can generate employment, strengthen local economies, and reinforce India’s standing as a compelling global tourism destination.
