On Monday, the Travel Agents Association of India (TAAI) called for several measures to boost the domestic travel and tourism sector, which contributes 5.8 percent to India’s economy. Their requests include simpler visa requirements, visa-free entry for tourists, GST rate rationalisation, GST credit, and industry status for all stakeholders in the segment.

“The Union Budget 2024 holds significant expectations for India’s travel and tourism sector. India’s travel and tourism sector contributes 5.8 percent to the GDP and aims for a target of USD 1 trillion by 2047. We hope the budget addresses these priorities,” TAAI stated.

TAAI emphasized that implementing these measures could significantly enhance India’s travel and tourism industry, benefiting both businesses and travelers.

Despite previous representations addressing ease of doing business, GST, and tax collected at source (TCS) concerns related to the travel industry during the interim budget in February this year, these issues were ignored, TAAI expressed their dissatisfaction with the interim budget presented by Finance Minister Nirmala Sitharaman before the Parliamentary polls this year.

In a detailed communication on July 5, TAAI reiterated its earlier requests to Sitharaman, Minister for Civil Aviation Kinjarapu Rammohan Naidu, and Tourism & Culture Minister Gajendra Singh Shekhawat ahead of the presentation of the Union Budget later this month.

The association is urging the government to maintain its focus on infrastructure development in the forthcoming Union Budget, including establishing new airports through private participation and expanding rail, road, and waterways (sea and river cruises). They also highlighted the importance of developing high-growth areas such as religious circuits, MICE (Meetings, Incentives, Conferences, and Exhibitions), wellness tourism, and hidden gems like Lakshadweep.

TAAI highlighted the need for simplifying visa requirements and promoting visa-free entry for tourists to significantly boost foreign tourist arrivals. They also called for reducing Aviation Turbine Fuel (ATF) costs to pre-pandemic levels to improve air travel accessibility.

Additionally, the association is advocating for a more favourable GST structure that allows input tax credit for holiday businesses, which could lead to more affordable hotel stays, making accommodations accessible to tourists and encouraging investment in the sector.