Highlights:

• 50  new tourist destinations to be identified and
  promoted
• 50 new airports, heliports, waterdromes to be developed
• Information-driven app to be created for tourists
• State capitals to have ’Unity Malls’ to showcase
  handicraft/GI-marked products
• Focus shifts to promotion of domestic tourism

NEW DELHI: Indian Finance Minister Nirmala Sitaraman has
announced a slew of measures in the Union Budget 2023-24 for tourism
development with focus on promotion of domestic tourism and enhancement of
regional connectivity. The tourism sector would from now on
function on mission mode, the Minister said while presenting the Union
Budget 2023-24 in Parliament on Wednesday (February 1).

Key among the proposals contained in the Budget, presented
in Parliament on February 1 (Wednesday), are sector-specific skilling and
entrepreneurship development to achieve the objectives of the Dekho Apna Desh
initiative, development of around 50 new tourist destinations, creation of an
information-driven app for tourists, and establishment of ’Unity Malls’ in
State capitals to showcase handicrafts and products with geographical
indication (GI) status. The Finance Minister has not enhanceed the Budget
allocation for the tourism sector, which remained at Rs. 2,400 crore as last
year.

The 50 tourist destinations to be developed would be
selected through a challenge. They would be developed using an integrated and
innovative approach. The mobile app will provide tourist-friendly information
like physical and virtual connectivity, and details on tourist guides.
Availability of high quality street food would be ensured at all major tourist
destinations to enhance the tourist experience, Ms Sitharaman said.

The allocation for the regional connectivity scheme of the
Ministry of Civil Aviation has been doubled from Rs. 600 crore to Rs. 1,244
crore. Development of new heliports and waterdromes was first mooted in 2017
under the regional connectivity scheme. So far only nine heliports and two
waterdromes have come up and not all of them are operational.

The sector-specific skilling and entrepreneurship development programme is
intended to achieve the objectives of the Dekho Apna Desh initiative. The
scheme was launched as an appeal to the middle class to pick domestic
destinations over international ones.  Under another scheme, the Vibrant
Villages Programme, tourism infrastructure and amenities will be facilitated in
border villages.

The Finance Minister said States will be encouraged to set up a ‘Unity Malls’
in their capital cities, or the most prominent tourism centre, or the financial
capital. These malls would work towards the promotion and sale of each State’s
own ODOP (one district, one product) and other handicrafts. They would also
provide space for such products of all other States.

“The country offers immense attractions for domestic as well as foreign
tourists. There is a large potential to be tapped in tourism. The sector holds
huge opportunities for jobs and entrepreneurship for youth in particular.
Promotion of tourism will be taken up on mission mode, with active
participation of States, convergence of government programmes and public-private
partnerships,” she said.

Industry feels much left to be desired

Although the tourism industry has welcomed budget proposals, there is a sense
of angst that some of the key demands of the industry, such as rationalisation
of GST, infrastructure status, etc., have not been met. Indian Association of
Tour Operators (IATO) president Rajiv Mehra said that while measures like
development of tourism infrastructure at border villages and the development of
50 tourist destinations were quite encouraging, none of the industry’s major
demands like rationalization of GST on tourism industry, exemption of GST on
foreign exchange earnings and refund of tax on shopping under Tax Refund to
Tourist (TRT) Scheme on shopping, for which there is already a provision in the
GST Act, have been considered.

Federation of Associations in Indian Tourism and
Hospitality (FAITH) Chairman Nakul Anand welcomed the Finance Minister’s
announcement that tourism would from now on be developed on mission-mode, but
the failure to accord infrastructure status  was a major setback for the
industry. If infrastructure status were given and the industry treated at par
with merchandise exports, it would have givne a big fillip to the tourism
industry’s efforts for global marketing, he said.