The Interim Budget of 2019 has bought something positive to the travel industry. Along with various initiatives it has focused on tax rebates for the middle class and brought a scope of saving for themselves to spend more on vacations. This in straight way will benefit the travel and tourism sector, as said the industry players.
Rakshit Desai, MD, FCM Travel Solutions said, “The interim budget, on the whole, is quite welcoming for the travel industry, being complemented by further tax rebate for the middle income group – more savings means more travel.”
Nishant Pittie, Co-Founder & CEO, EaseMyTrip, sharing a similar viewpoint said, the budget announced promising initiatives that will definitely auspicate the Indian travel and tourism industry.
While there has been a dramatical increase in the Indian middle-class average purchasing power, the tourist activities among the newly middle-class consumers
of India have also been encouraged benefiting the hospitality industries. Again these new tourists are more interested in choosing locations nearer to home, facilitating the tourism industry of the country additionally. Along with, this tax-rebate thing will stir up holiday making among Indian middle-classes even more.
Added to this,the government has increased the funds for the tourism ministry to Rs 2,189.22 crore for 2019-20, while the amount was Rs 2,150 crore for 2018-19.
According to the Royal Orchid Hotels MD Chander Baljee, “The exemption of income tax for middle and lower class segment of the society will hike the disposable income, which will line up in meeting the demands of consumer focused industries.”
Giving centre stage to the fact that tax exemptions will provide an encouragement to the sector, Cox & Kings Group CEO Peter Kerkar said the move will advantage additional savings thereby promoting more discretionary spends and travel and tourism can be one of the beneficiaries.
The move could add to a domestic tourism boom at a time low inflation and rising incomes are changing the lifestyle and consumption patterns of an estimated 250 million middle-class Indians. The industries that are associated with the tourism sector are also expected to surge.
