Budget 2024: Infrastructure and port connectivity projects will be a big boost to domestic tourism

In her Interim Budget speech on Thursday, Union Finance Minister Nirmala Sitharaman announced plans to undertake infrastructure and port connectivity projects in India's islands, including Lakshadweep, to cater to the growing interest in domestic tourism. She emphasized that these projects, encompassing port connectivity, tourism infrastructure, and amenities, aim to boost employment opportunities.

Furthermore, Sitharaman increased the budget estimate for the tourism industry by over 2%, reaching ₹2,449.62 crores for the financial year 2025, compared to ₹2,400 crores in FY24. She encouraged states to comprehensively develop iconic tourist centers, with the central government providing long-term interest-free loans to support this development, aiming for global branding and marketing.

Travel and tourism companies expressed optimism about the government's continued focus on domestic tourism in the Interim Budget 2024-25. K.B. Kachru, Chairman Emeritus & Principal Advisor, Radisson Hotel Group, South Asia, praised the initiatives, stating that empowering iconic destinations and local entrepreneurs through interest-free loans and quality ratings will elevate India's tourism landscape. He sees this as an investment in India's potential and anticipates additional futuristic support from the government.

Rajesh Magow, Co-founder & Group CEO, MakeMyTrip, commended the commitment to bolster domestic tourism through rail and air travel initiatives, emphasizing a strategic vision for the long-term growth of the travel and tourism sector. The allocation of interest-free loans for creating iconic tourist destinations was highlighted as a noteworthy step.

Magow highlighted the importance of collaboration between the industry and the government for maximizing impact, ensuring quality standards, and fostering sustainable tourism models.

Jaikar Singh, Director of Symphony Resorts, appreciated the government's commitment to expanding existing airports and developing new ones, particularly in Andaman & Nicobar Islands. He noted the monumental leap in airline routes and orders for aircraft by Indian carriers. Singh sees the government's pledge to enhance port connectivity and tourism infrastructure for islands like Andaman & Nicobar as a promising step towards unlocking their true tourism potential. He expressed satisfaction with the success of the Udan scheme and the encouragement for iconic tourist centers, anticipating a positive impact on the country's upcoming tourist destinations.

Also Read: Interim Budget 2024: From 5.1% fiscal deficit target in FY25 to push for infra, key highlights of FM Sitharaman's speech