The Union Budget 2026 signals a steady, long-term approach to strengthening India’s tourism and hospitality ecosystem. With its focus on infrastructure development, improved connectivity, skilling initiatives, and support for MSMEs, the Budget reinforces the government’s intent to position tourism as a key driver of employment and regional growth. While it stops short of big-ticket incentives, the emphasis on capacity building and accessibility lays a foundation for sustainable expansion across destinations.
Anil Chadha, Managing Director, ITC Hotels Limited:
The Budget’s renewed focus on tourism is a strong vote of confidence in an industry that creates livelihoods at scale, supporting local entrepreneurs, artisans, and communities across the tourism value chain. The proposed upgradation of National IHMs and the NCHMT (National Council for Hotel Management and Catering Technology), alongside structured guide skilling initiatives, will significantly strengthen service quality and global competitiveness in hospitality. The emphasis on medical tourism further positions India as a trusted destination that combines care, capability, and hospitality. Equally transformative is the push towards a digital and AI-enabled tourism knowledge framework, which will enhance discoverability, planning and destination management. The focus on adventure tourism, including trekking, hiking, and wildlife trails, along with the development of Buddhist circuits across the North-East states, highlights the importance of responsible, experience-led growth that protects the very destinations travellers seek. Together, these measures present a timely opportunity to build India’s tourism advantage on quality, authenticity and sustainability.
Ravi Gosain, President, Indian Association of Tour Operators (IATO):
The Union Budget’s clear focus on tourism is timely and encouraging, as it rightly recognises the sector as a major contributor to employment generation, foreign exchange earnings and inclusive economic growth. The emphasis on institution-building through the National Institute of Hospitality, large-scale skilling of tourist guides, and the proposed National Destination Digital Knowledge Grid are forward-looking steps that will strengthen professionalism, preserve India’s cultural and heritage assets, and enhance global competitiveness while benefiting local communities. The industry is also encouraged by the focus on eco-tourism, trekking and wildlife trails, in line with the growing global demand for sustainable and experience-based travel. However, while the reduction of TCS on outbound spending is a positive regulatory move, the absence of a dedicated allocation for overseas tourism promotion is disappointing, as it remains critical for driving inbound tourism. It is reassuring that tourism has been acknowledged in the Finance Minister’s speech, and we remain hopeful that this intent will be supported by adequate financial backing in the period ahead.
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 were expecting a clear budgetary 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. Additionally, measures around improved air connectivity, ease of e-visa access, rationalisation of GST for tourism services, and a single-window approach for tourism infrastructure projects would have further strengthened the growth momentum. A focused push in these areas can significantly enhance India’s competitiveness as a global tourism destination.
Pradeep Shetty, Spokesperson, Hotel and Restaurant Association (Western India) – HRAWI:
Placing tourism at the centre of India’s growth strategy in the Union Budget 2026–27 is a welcome move. Right steps with clear focus on skilling, destination development and experiential offerings like spiritual, heritage and wildlife circuits, will certainly help strengthen domestic tourism. Initiatives such as the National Institute of Hospitality and the upskilling of guides are positive steps toward enhancing service quality and employability. However, critical structural enablers remain unaddressed. To truly unlock the sector’s potential for jobs and foreign exchange, we urgently need Infrastructure Status for the hospitality industry, GST rationalisation, tax incentives for new and green hotels, and stronger measures to boost FTAs. Without these, achieving scalable, regionally-balanced tourism growth will remain a challenge.
Aditya Pande, Group CEO, InterGlobe Enterprises:
The Union Budget outlines a strong, forward-looking roadmap toward a Viksit Bharat by 2047. We welcome the government’s continued focus on strengthening India’s travel, tourism, and hospitality ecosystem through improved connectivity, accessibility, and destination infrastructure. The emphasis on skill development, heritage, and ecotourism reflects a deep understanding of the sector’s economic potential. These measures will boost demand, support local economies, and strengthen India’s position as a global hub for high-quality hospitality and travel.
Vinesh Gupta, General Manager, The Den Hotel:
The Union Budget 2026-2027 sends a positive signal in recognising tourism and hospitality as key drivers of employment and regional development. The move to elevate the National Council for Hotel Management into the National Institute of Hospitality is particularly encouraging, as it brings education closer to industry realities and evolving service expectations. The emphasis on training 10,000 tourist guides, along with the introduction of the Digital Knowledge Grid, will strengthen destination storytelling and enrich how travellers experience India. Improved regional and transport connectivity will further enhance access to destinations and enable more balanced travel patterns. Support for emerging segments such as medical tourism and astro-tourism is a timely step that can attract high-value, longer-stay guests, while the reduction in TCS on foreign tour packages is a welcome measure likely to boost travel sentiment and discretionary spending. From our perspective at The Den, Bengaluru, these initiatives lay the groundwork for a more resilient hospitality ecosystem, one that stimulates demand while strengthening talent, service quality, and overall guest experience.
Bhavik Sheth, 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.
Aviral Gupta, CEO, Zostel
The Union Budget 2026 recognises tourism as a strategic pillar of India’s growth story. With tourism contributing nearly 7–8% of GDP and driven by strong domestic and international travel demand, the sector is now firmly anchored within an infrastructure-led growth approach. The proposed ₹12.2 trillion capital expenditure across roads, railways, airports and regional connectivity will significantly improve access to heritage, mountain, coastal and emerging tourism circuits. The Budget’s reduction of the tax on overseas tour programme packages from 5% to 2% is a positive step that simplifies outbound travel and reflects the growing scale of global tourism activity. The focus on experience quality through the training of 10,000 certified tourist guides, investments in hospitality education, and the development of 15 archaeological and cultural sites into experiential destinations marks a clear shift towards value-led tourism. For Zostel, this aligns closely with rising demand for trekking, hiking and nature-led travel, improved connectivity to remote and coastal regions, and destination development across Himachal Pradesh, Uttarakhand, Jammu & Kashmir, the Western Ghats and coastal India.