TOURISM TAKES OFF

UNION BUDGET 2026 CHARTS GROWTH PATH

- by Suman Tarafdar

Recognising the tourism sector's huge potential for employment generation and revenue growth, Budget 2026-27 lays an almost unprecedented focus on the sector.

Keen followers of governments policies might remember the ‘5Ts’ from 2014. The then incoming prime minister had announced the need to strengthen ‘Brand India’ with a focus on 5Ts, one of which was tourism. By and large, however, the sector has been left disillusioned in successive budgets since then. Sure, there have been some announcements of grandiose schemes and the like. The sector has been better served by peripheral benefits, which have accrued from increased infrastructure outlays, which have provided faster connectivity, aiding the sector. Largely though, tourism has been an afterthought, with no coherent policy, even as inbound tourism numbers remained static or even declined (not counting the Covid era) while domestic tourism grew manifold. The sector pivoted accordingly.

For the tourism sector, Budget 2026-27 has been a pleasant surprise. To begin with, there were over a dozen major announcements that are expected to impact the sector in a positive way. “The tourism sector has the potential to play a large role in employment generation, forex earnings and expanding the local economy,” Finance Minister Nirmala Sitharaman said in her speech.

PROPOSALS APLENTY

These include a proposal to set up a National Institute of Hospitality by upgrading the existing National Council for Hotel Management and Catering Technology (NCHMCT).

A pilot scheme for upskilling 10,000 guides in 20 tourist sites through a standardised, high-quality 12-week training course in hybrid mode, in collaboration with an Indian Institute of Management, has been proposed.