The Union Budget 2026 has evoked mixed reactions from the travel and tourism industry, with stakeholders welcoming selective reforms while expressing disappointment over the absence of comprehensive measures to support the sector’s long-term growth.
Welcoming the acknowledgment of tourism within the government’s employment and growth strategy, Ravi Gosain, President, IATO said, “I am happy that tourism gets a place in the Finance Minister’s speech in the government’s employment and growth strategy. I am sure that monetary allocation will come in the future to realise this vision.”
Ravi Gosain, President, IATO: “While Union Budget 2026 takes positive steps for domestic tourism and infrastructure, India still needs a stronger focus on international promotion. We need a dedicated India Tourism Promotion Board, increased marketing funds, simplified TCS for travel packages, better access to credit for operators, and streamlined visa processes. If we want to compete globally and increase foreign tourist arrivals, a larger budget and a more focused overseas strategy are essential.”
Sunil Kumar R, President, Travel Agents Association of India (TAAI): “India Budget 2026 reflects initiatives towards a progressive approach for the Travel & Tourism Industry. While we welcome impactful measures such as the reduction of TCS to 2 percent and the focus on tourism circuits, infrastructure, and skill development, the much-awaited industry status for tourism continues to remain unaddressed. The reduction in TCS provides immediate relief to Indian tour operators, and we now await detailed clarifications on the announced initiatives.”
Himanshu Patil, President, Outbound Tour Operators Association of India (OTOAI) and Director, Kesari Tours: “The Union Budget 2026 sends an encouraging signal for India’s tourism and travel industry, with a strong focus on infrastructure development, skilling, and destination enhancement. We particularly welcome the reduction of TCS on outbound tour packages to a flat 2 percent, which will ease cash-flow pressures and create a level playing field for Indian outbound tour operators. OTOAI looks forward to further clarifications on implementation.”
Rajeev Kohli, Joint Managing Director, Creative Travel: “Unfortunately, the budget has been extremely underwhelming. While references were made to trekking routes and archaeological sites, these largely fall under state mandates and offer no real game changer. Although the reduction of TCS is a welcome move for outbound travel, the removal of meaningful allocations for skill development and global tourism marketing has dealt a severe blow to inbound tourism. The export component of Indian tourism has been left to fend for itself.”
Jagdeep Bhagat, President, TIA: “For the tourism ecosystem in the country, the Union Budget 2026 is disappointing. There are no immediate measures announced for the benefit of tourism stakeholders. While plans for high-speed corridors and cultural hubs sound promising, without an effective mechanism to maintain and manage existing infrastructure, little will change. The reduction in TCS benefits the traveller more than the tour operator, highlighting the government’s lack of clarity on whether it aims to grow domestic, inbound, outbound, or MICE tourism. Tourism will only flourish with a 360-degree approach that supports all verticals of the industry.”
Shwetank Singh, MD & CEO, Chalet Hotels Ltd.: “The Union Budget 2026 signals a strong commitment to elevating India’s tourism and hospitality sector, with initiatives like upgrading NCHMCT, developing digital tourism infrastructure, and promoting sustainable and experiential tourism. While these measures will enhance talent, infrastructure, and global competitiveness, granting comprehensive infrastructure status and stronger policy support remains crucial to fully unlock the sector’s growth potential.”
Nikhil Sharma, MD & COO, South Asia, Radisson Hotel Group: “We welcome the Union Budget 2026–27 for its strong focus on enabling responsible growth in India’s tourism and hospitality sector. The emphasis on strengthening last-mile infrastructure, expanding rail connectivity, and promoting destination-led tourism beyond major metropolitan centres will help unlock new growth markets. Initiatives such as developing Himalayan trails, Buddhist circuits, and prioritizing the Northeast, along with setting up a National Institute of Hospitality, highlight the importance of sustainable, experiential tourism and skill development. These measures are well-aligned with our efforts to expand in emerging destinations, build local capabilities, and create sustainable jobs, supporting a resilient and inclusive tourism ecosystem across India.”
Rajesh Magow, Chair, FICCI Tourism Committee and Co-founder & Group CEO, MakeMyTrip: “The Budget reinforces the government’s sustained focus on travel and tourism as a long-term growth driver. The rationalisation of TCS on overseas tour packages is a welcome step that addresses upfront liquidity impact on Indian outbound travellers. The government’s infrastructure-led investments have played an important role in supporting the growth of domestic tourism, and it is encouraging to see this momentum being sustained. Continued focus on regional connectivity and destination development, along with an emphasis on skilling and the creation of a national digital repository for destinations, will help improve destination discovery and enhance the overall traveller experience.”
Mr KB Kachru, President, Hotel Association of India (HAI) and Chairman – South Asia, Radisson Hotel Group: “Budget 2026-27 shows a strong focus on accelerating economic growth, with infrastructure and services driving tourism. Initiatives like the National Institute of Hospitality, East Coast Tourism Corridor, medical-value tourism, and content-creator labs will boost hotel viability, diversify offerings, and enhance global competitiveness.”
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.” However, key structural reforms—broader infrastructure recognition, tourism on the concurrent list, and GST rationalization—are needed to unlock the sector’s full potential. HAI looks forward to engaging in post-budget discussions to translate this vision into tangible outcomes and supports the goal of expanding tourism’s contribution to 10% of GDP by 2047.”
Mr Chirag Agarwal, Co-founder & CEO, TravClan: “The Union Budget 2026 takes a constructive step towards addressing some long-standing operational challenges faced by outbound travel businesses. The reduction of TCS on overseas tour packages to 2% is a welcome move and will ease immediate cash-flow pressure for both travellers and agents, particularly in high-volume, cross-border transactions.Effective implementation will now be critical. Clear guidance on refund timelines, reconciliation processes and system readiness will determine how quickly this relief translates into day-to-day business operations. Beyond taxation, access to formal credit for booking-led travel businesses remains an important gap, as traditional lending frameworks still do not fully account for advance collections and extended settlement cycles.”
Aditya Sanghi, CEO of Hotelogix: “The Union Budget 2026–2027 sends a clear signal that the Indian tourism and hospitality industry is one of the most important drivers of jobs and growth. Enabling this industry through initiatives such as a National Institute of Hospitality, talent upskilling, and digital infrastructure are welcome steps. However, execution on the ground will define success in the long run. It must empower homegrown midscale hotels in Tier II/III markets to access modern solutions and a skilled workforce easily to thrive sustainably. At Hotelogix, we see this as a pivotal moment to support hotels in this segment with cloud-led, scalable technology that helps them ensure smarter operations and deliver consistently better guest experiences.”
Overall, industry reactions to Union Budget 2026 underline a clear divide—while outbound travel and select infrastructure initiatives have received a boost, stakeholders continue to call for a cohesive tourism policy that balances domestic growth, inbound promotion, and long-term industry sustainability.
