As Union Budget 2026 outlines the government’s priorities for tourism, mobility, skilling, and connectivity, leaders from India’s hospitality sector have begun responding to what the announcements mean for hotels, travel demand, and long-term growth. From infrastructure-led destination development and improved regional connectivity to tax rationalisation and workforce skilling, industry veterans are offering their perspectives on how the budget could shape investment decisions, operational confidence, and consumer sentiment in the months ahead.
What Hospitality Leaders Are Saying
KB Kachru, President, 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 Budget’s proposals, including the National Institute of Hospitality, aim to strengthen industry-aligned skilling, research, and leadership development. Infrastructure growth in Tier II-III 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. Realising 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 rationalising GST to enhance competitiveness. 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.
Arjun Baljee, President, Royal Orchid Hotels Ltd & Founder of ICONIQA
The Union Budget 2026 reinforces long-term economic momentum through a strong push on infrastructure expansion, logistics efficiency and ease of doing business, all of which directly strengthen India’s travel and business ecosystem. The proposed Rs 2.78 lakh crore outlay in Railways Capital and Rs 3.10 lakh crore outlay in Roads & Highways is a fundamental shift which is not just about building infrastructure – it’s about building accessibility to experiences. Tier II and Tier III cities with rich cultural heritage but limited connectivity will finally enter the mainstream travel circuit. We’re not just looking at improved logistics for our supply chains, we’re looking at millions of new domestic travellers gaining seamless access to hotels, resorts, and experiences that were previously out of reach. The emphasis on experiential tourism – from developing trekking circuits to curating turtle trails along our coastal ecosystems and enhancing archaeological sites- signals a strong push to evolving traveller preferences. Today’s discerning tourists seek authentic, transformative experiences and these initiatives position India to capture premium segments of the adventure and heritage tourism markets. Additionally, tax and compliance simplifications, along with measures that ease travel costs and promote seamless mobility, will further stimulate both domestic and business travel demand. As hotel development increasingly follows infrastructure and industrial growth corridors, these measures create a positive environment for sustained hospitality sector expansion. We remain committed to supporting India’s growth story by strengthening quality hospitality offerings across emerging destinations.
Vikram Lalvani, Managing Director & CEO, Sterling Holiday Resorts, said on Union Budget 2026
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.”
Rajiv Mehra, General Secretary, FAITH
We welcome the government’s initiatives to develop new adventure trail sites across states, the focus on upskilling tourist guides, the use of AI for enhancing tourist destinations, and the reduction of TCS on overseas travel. These are progressive steps for the sector. However, we expected a clear budget allocation for international tourism promotion, which appears to have been missed. Strengthening India’s visibility in global markets and measures for soft branding are critical to accelerating inbound tourism.
Surendra Kumar Jaiswal, President, FHRAI
It is encouraging that tourism has finally come into the government’s agenda as a key pillar of employment and economic growth in the Union Budget 2026 -27. Placing tourism at the centre of the growth strategy in the Union Budget—linking it directly to job creation, foreign exchange earnings and local economic development—is a long-awaited shift. The emphasis on cultural, spiritual, heritage and medical value tourism, skilling, nurturing young storytellers, destination development, and last-mile connectivity can unlock India’s true potential as a global tourism hub. The proposal to create a National Institute of Hospitality and work closely with academia and industry is a timely step towards strengthening skills and service standards. The pilot initiative to upskill 10,000 guides across 20 iconic tourist sites through a structured 12-week hybrid programme reflects a welcome focus on quality, professionalism, and employability. The creation of a national cultural destination digital knowledge grid, along with the development of sustainable mountain trails in Himachal Pradesh, Uttarakhand and Jammu & Kashmir, and wildlife tourism circuits such as turtle nesting trails in Odisha, Karnataka and Kerala, and bird-watching trails around Pulicat Lake, signals a clear intent to promote responsible and experiential tourism. Further the proposal to upgrade 15 archaeological sites into major cultural hubs will strengthen India’s heritage tourism ecosystem. The lowering of TCS to 2% is again a welcome move. The budget announcements certainly put Tourism at the Government’s agenda. The budget has really shown the Government’s intent to promote Tourism as a sector to derive overall socioeconomic growth. On behalf of FHRAI, I commend the budget as it focuses on creating new tourism related economic zones in cities, high speed train corridor, development of 20 national waterways, and improvement of infrastructure in Tier II & III cities. These initiatives will help spread tourism beyond metros, attract investment, generate lakhs of jobs and bring in billions in foreign exchange.
Ravi Gosain, President, IATO
The Union Budget’s focus on tourism is timely and welcome, recognising its role in jobs, foreign exchange and inclusive growth. Steps like guide skilling, the National Institute of Hospitality and the Destination Digital Knowledge Grid will strengthen India’s tourism ecosystem, while the push for eco-tourism and experiential travel is encouraging. However, the lack of a dedicated allocation for overseas tourism promotion remains a concern. That said, tourism’s mention in the Finance Minister’s speech gives confidence that stronger financial support will follow.
Rajan Bahadur, CEO, Tourism & Hospitality Skill Council (THSC)
The tourism and hospitality sector is at an important stage as India strengthens its position as a global travel destination. The Union Budget offers a key opportunity to support this growth through investments in infrastructure, skill development, and ease of doing business. While work has been done, we expect greater focus on tourism infrastructure, such as last-mile connectivity, destination development, and digital platforms that improve visitor experience. Continued support for skill development is equally important, especially for frontline hospitality roles, women, youth, and gig workers who form the backbone of the sector. As the industry increasingly adopts AI, technology, and platform-based models, the upcoming Union Budget should prioritise skilling and upskilling initiatives that align with changing job roles and industry demand. Greater emphasis on industry-linked training, on-the-job learning, and public–private collaboration will help build a future-ready workforce. With the right budgetary support, the tourism and hospitality sector can significantly contribute to employment generation and balanced regional development.
Pushpendra Bansal, COO, Lords Hotels & Resorts
The Union Budget 2026 reflects a steady and encouraging commitment towards strengthening India’s tourism and hospitality ecosystem. The continued focus on infrastructure development, regional connectivity, and destination-led growth will directly support travel demand, particularly across emerging leisure and pilgrimage destinations. Improved roadways, rail networks, airport expansion, and last-mile connectivity will significantly enhance accessibility to Tier II and Tier III markets.The emphasis on economic stability, employment generation, MSME support, and tourism skilling creates a stronger operating environment for the hospitality sector. Initiatives such as tourism skilling, training 10,000 tourist guides, and establishing a National Institute of Hospitality will help build a skilled, service-ready workforce for the industry.When consumer confidence improves and employment opportunities expand, travel becomes a priority rather than a discretionary spend. Support for MSMEs also strengthens the tourism value chain, from local vendors and transport providers to small businesses operating in emerging destinations. These initiatives will drive steady demand across leisure, business, religious tourism, weddings, and medical Tourism segments, while allowing hospitality brands to respond better to evolving traveller expectations.The budget did not restore the Input Tax Credit for hotels with room tariffs below ₹7,500, which continues to impact the profitability of budget and mid-scale hotels. Also, there was no reduction in the 18% GST slab for high-end room tariffs, which remains one of the highest globally. Overall, Budget 2026 reflects positive intent and provides momentum for sustained, tourism-led economic growth, with continued collaboration between the government and the private sector being key.
Kinjal Shah, Senior Vice President & Co-Group Head, Corporate Ratings, ICRA Limited
The Union Budget for FY2027 proposes the establishment of five regional medical tourism hubs, which will boost medical tourism volumes. Enhanced focus on developing infrastructure in tier 2 and 3 cities, including temple towns, and proposals for developing trekking trails and 15 archaeological sites would further support tourism and thus the aviation sector. Additionally, the Budget proposes a basic customs duty (BCD) exemption on components and parts used in the manufacture of civilian, training, and other aircraft. This will help lower the aircraft purchase cost for the airlines.
Pranav Rungta, Vice President, NRAI Mumbai
Budget 2026 is a positive step for India’s hospitality sector. Announcements like the first-ever National Institute of Hospitality and structured skill development for tourist guides will strengthen service standards and prepare our workforce to meet growing domestic and international demand. At the same time, restaurants continue to face structural challenges such as GST on commercial leases, access to export incentives like SEIS and easier SME support. Addressing these challenges alongside rising tourism and dining demand is key to building a resilient, sustainable and globally competitive hospitality sector.
Kunal Vasudeva, Managing Director and Co-Founder, Indian School of Hospitality
The Union Budget 2026 places education at the centre of India’s economic ambition. The Education to Employment and Enterprise framework, university townships, and investments in future technologies signal that education is being treated as national infrastructure. The next phase rests on execution at scale through teacher capability, strong primary education outcomes, and delivery standards that work across the country. Sustained focus here will anchor services-led growth and Viksit Bharat.
Rajesh Magow, Chair, FICCI Tourism Committee and Co-founder & Group CEO, MakeMyTrip
The Budget reinforces the government’s sustained focus on travel and tourism as a long-term growth driver. The rationalisation of TCS on overseas tour packages is a welcome step that addresses the upfront liquidity impact on Indian outbound travellers. The government’s infrastructure-led investments have played an important role in supporting the growth of domestic tourism, and it is encouraging to see this momentum being sustained. Continued focus on regional connectivity and destination development, along with an emphasis on skilling and the creation of a national digital repository for destinations, will help improve destination discovery and enhance the overall traveller experience.
Aloke Singh, Managing Director, Air India Express
The Union Budget 2026–27 sends a strong and reassuring signal for India’s long-term growth, anchored in fiscal discipline and a sustained push on infrastructure-led development. The continued emphasis on capital expenditure and destination-focused investment provides a solid structural framework for the expansion of tourism and, by extension, the civil aviation sector. The Budget’s focus on strengthening medical value tourism and destination development is particularly relevant for aviation, as it creates high-frequency, purpose-driven inbound travel, especially from regions such as the Middle East and Southeast Asia. At the same time, the emphasis on developing heritage, archaeological, and eco-tourism destinations across multiple states will stimulate demand for air connectivity to Tier-II and Tier-III cities, supporting the next phase of domestic aviation growth.
Ajay Singh, Chairman and Managing Director, SpiceJet
At a time when the global economy is being tested by supply-chain shocks, trade barriers and rising uncertainty, Budget 2026 marks a clear shift from short-term stimulus to long-term capacity-building. The focus on structural reforms, deeper manufacturing capabilities, diversified supply chains and future-ready investments shows a recognition that volatile times call for foresight, not fiscal populism. The 9 per cent rise in public capital expenditure provides a much-needed growth anchor, while the government’s adherence to a fiscal glide path – with the deficit brought down to 4.3 per cent of GDP – reinforces credibility and discipline. Together, these measures signal a budget that is pragmatic, resilient and geared for sustainable growth.
A Vikram Joshe, founder of WAE Ltd
The Union Budget 2026 offers recognition without resolution for the hospitality sector. Tourism is positioned as a growth and employment engine, with announcements around destination development, connectivity, skilling, and heritage circuits. These measures can expand footfalls over the medium term and improve service quality, but their impact on hotel balance sheets will be indirect and time-lagged. What the budget notably avoids is the sector’s core structural pain. There is no GST rationalisation, despite clear evidence that a fragmented tax regime distorts pricing and competitiveness. There is also no infrastructure status, targeted credit support, or cost-side relief—critical for a capital-intensive industry still recovering from Covid-era leverage and margin erosion. In effect, the budget bets on demand creation while sidestepping operating realities such as high taxation, financing costs, and labour pressures. For large chains, the signals are mildly positive. For small and mid-sized operators, this is not a recovery budget, but a continuation budget—strategic in narrative, limited in economic substance.
Aloke Bajpai, Group CEO, ixigo
The Union Budget placing tourism at the centre of its employment and growth strategy is a strong and welcome signal for the sector, recognising its role in job creation, foreign exchange earnings and strengthening local economies across the country. The increased emphasis on rail and road infrastructure, specifically the budget for New Railway Lines being increased by 14 per cent in FY27 compared to FY26, as well as the increase by 10 per cent of budgetary allocation for highway infrastructure, are both very encouraging moves for the travel industry. Seven High-Speed Rail corridors as ‘growth connectors’, with emphasis on the booming travel demand for Varanasi, will enhance rail capacity. We also like the focus on Tier II and Tier III cities, including temple-towns, through the city economic regions (CER) development budgetary allocation of Rs. 5000 crores – this should result in a big boost for tourism in those cities. The setting up of the National Institute of Hospitality and the upskilling of tourist guides will help improve service quality and enhance India’s position as a global tourist destination. The emphasis on nature-based and experience-led tourism with plans to build ecologically sustainable trekking and hiking trails across key mountain and forest regions, is particularly encouraging and is likely to give a meaningful boost to leisure travel within India, which is increasingly being driven by Millennials and Gen Z.
Gaurav Malik, Country Director, Indian Subcontinent & Indian Ocean Islands at Agoda
Agoda welcomes the Union Budget and congratulates the Government on placing travel and tourism firmly within India’s next phase of growth. The Budget recognises the travel sector as a practical engine for jobs, skills, and regional participation, while responding to how traveller preferences are changing across the country. Overall, the Budget sends a clear message that tourism plays a role not only in economic expansion but also in shaping how people explore India and the world. Agoda looks forward to supporting this momentum by improving discovery, choice, and booking ease for travellers as travel across India becomes broader and more experience-led.
Rikant Pittie, CEO and Co-founder, EaseMyTrip
This Budget sets a forward-looking vision for India’s tourism and travel ecosystem. Announcements around medical and heritage tourism, the National Institute of Hospitality, guide upskilling with IIM, and trekking experiences show a clear push toward experience-driven, quality travel. When combined with high-speed rail, AI and emerging technologies, and a focus on sustainable travel, these measures create a strong foundation for innovation, jobs, and inclusive growth. At EaseMyTrip, we see this as a clear call to action to work with government, industry, and communities to make travel smarter, more sustainable, and more meaningful for travellers across the globe.
Mahesh Iyer, Managing Director & CEO, Thomas Cook (India) Limited
The Union Budget 2026 reflects a strong recognition of tourism as a strategic pillar for economic growth, employment generation, and regional development. From a consumer standpoint, the rationalisation of Tax Collected at Source is a welcome move. The simplified flat 2 per cent TCS on overseas tour programme packages replaces the earlier Tier II structure, easing compliance and unblocking cash flows for travellers. We also appreciate the reduction of TCS to 2 per cent on education and medical remittances, which will significantly ease the burden on these important long-term drivers, especially amid the impact of rupee depreciation. Additionally, the development of seven high-speed rail corridors, expansion of 20–25 new National Waterways, and incentives for indigenising seaplane manufacturing will greatly enhance connectivity and unlock new tourism circuits, including remote and island destinations. The plan to develop five regional medical tourism hubs with the private sector further strengthens India’s position as a global healthcare destination. Overall, the Budget reinforces tourism’s role in driving inclusive growth; however, a higher marketing outlay to promote Incredible India could have delivered a powerful double-barrel impact by complementing infrastructure development with greater global visibility.
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.
Kush Kapoor, CEO, Roseate Hotels & Resorts on Union Budget.
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.
Ms. Amrita Gupta, Director, Manglam Group and CEO, Manglam Spa and Resorts
Budget 2026 sends a clear and positive signal for tourism and hospitality. Continued emphasis on infrastructure, connectivity and destination development will strengthen India’s position as a global travel hub. The focus on developing 15 archaeological and cultural sites, promoting eco-tourism, and expanding adventure and nature-led experiences reflects a well-rounded approach to destination building. Equally important is the push to improve regional connectivity and tourism circuits, which will unlock new growth opportunities across leisure, wellness and experiential travel. For Manglam, this aligns closely with our hospitality vision of creating thoughtfully designed destinations that celebrate nature, culture and sustainable tourism, particularly in markets like Rajasthan.
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.
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.
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 per cent 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, which 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.
Vishal Suri, Managing Director & CEO, SOTC Travel Limited
Budget 2026 sets the stage for accelerated growth in India’s travel and tourism sector. The reduction of TCS on outbound travel to 2 per cent will make international holidays more accessible and boost demand. While the establishment of five regional medical tourism hubs positions India as a leading destination for integrated hospitality and healthcare. We welcome these progressive steps, while continuing to advocate for formal Industry status for tourism to unlock the sector’s full potential.
Pushan Sharma, Director, Crisil Intelligence
The Budget outlines a three-pillar support strategy for the tourism sector: theme-based offerings such as medical value tourism, trekking and Buddhist circuits; skill development for guides, healthcare workers and other stakeholders; and investment in infrastructure such as seaplanes and high-speed rail. The rationalisation of TCS on overseas tour packages from a two-tier structure of 5 per cent /20 per cent to a flat 2 per cent meaningfully reduces upfront cash outgo burden for travellers, improving booking propensity for organised travel companies’ outbound businesses. This comes at a time of strong overseas travel momentum, with Indian departures at ~3.1 crore in 2024, and early 2025 trends tracking high-single-digit to low-double-digit growth. The simplified TCS regime enhances affordability, payment comfort, and booking visibility, supporting sustained growth in outbound travel businesses.
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 per cent 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, 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.
