Travel and tourism industry expects better tax reforms, improvement of infrastructure and better connectivity from the upcoming Budget 2020. Finance Minister Nirmala Sitharaman will present the Union Budget today.
India aspires to become the third largest travel market across the globe by 2025. However, the government must ensure that infrastructural inadequacies do not fetter the growth. The industry hopes that upcoming Budget will carry the vision to lift domestic infrastructure to meet global benchmarks.
FULL COVERAGE:Union Budget 2020
Travel company Cleartrip CFO Indroneel Dutt has urged the government to take cognizance and resolve challenges for the aviation industry which has already seen a tough year in 2019. According to him, thin operating margin coupled with TCS (Tax collection at source) have hampered the working capital of airlines, giving rise to numerous operational difficulties.
"These obstacles are not only affecting the stakeholders and service providers but the consumers as well," he said.
"We are optimistic that the government will continue to be open-minded and maintain the impetus of its past initiatives while bringing necessary reformations to further enable the travel sector," Dutt added.
Sunil Gupta, MD & CEO of car rental firm Avis India said that the government should build on its recent push towards sustainability by prioritising the growth of the Electric Vehicle (EV) ecosystem. He said that the road connectivity should also be improved between major urban centres and tier-2/3 regions to bolster the growth of the travel and tourism sector.
"This can be done by promoting the creation of a strong and well-connected charging infrastructure on a pan-India level, promoting the setting up of EV battery capacity in the country and incentivising the adoption of EVs, especially for public transport buses, fleet operator cars and 2 and 3 wheelers," Gupta said.
Commenting on the upcoming Budget, Varun Chadha, CEO, TIRUN Travel Marketing, said, "The government has recognised the potential of cruising as an economic multiplier and is catching up with the world in terms of policies and infrastructure. Cruise Lines are now looking at the government to create a relatable tax regime, which is at par with the rest of the world."
By Chitranjan Kumar