The Travel Agents Association of India ( TAAI ) on Monday called for the implementation of several measures to invigorate the domestic travel and tourism sector, which currently contributes 5.8% to India’s GDP, including Goods and Services Tax ( GST ) Rate Rationalisation and Industry recognition status for Travel Agencies.
The association emphasised the need for simplified visa requirements and the encouragement of visa-free entry for tourists, rationalisation of GST rates and credits, and the granting of industry status to all stakeholders involved in the sector. “The Union Budget 2024 holds significant expectations for India’s travel and tourism sector. With the sector aiming for a target of USD 1 trillion by 2047, we hope the budget addresses these priorities,” stated TAAI.
The association highlighted that these measures, if enacted, could significantly enhance India’s travel and tourism industry, benefiting both businesses and travellers alike. The association stressed the importance of these changes in light of the sector’s potential to drive economic growth and generate employment.
Despite having presented its concerns regarding ease of doing business, Goods and Services Tax ( GST ), and tax collected at source ( TCS ) during the interim budget discussions in February,
TAAI noted with disappointment that these issues were largely ignored. The association expressed its dissatisfaction with the interim budget presented by Finance Minister Nirmala Sitharaman before the Parliamentary polls this year, highlighting the lack of consideration for the travel and tourism sector’s unique challenges and needs.
In anticipation of the upcoming Union Budget, TAAI reiterated its requests in a detailed communication sent to Finance Minister Nirmala Sitharaman, Civil Aviation Minister Kinjarapu Rammohan Naidu, and Tourism & Culture Minister Gajendra Singh Shekhawat on July 5. The association is hopeful that the forthcoming budget will address these longstanding issues and support the sector’s growth.
TAAI is particularly keen on seeing the government continue its focus on infrastructure development in the Union Budget. This includes the establishment of new airports through private participation, rapid expansion in rail, road, and waterways (including sea and river cruises), and the development of high-growth areas such as religious circuits, Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism, wellness tourism, and hidden gems like Lakshadweep.
The association believes that these initiatives will create a robust infrastructure foundation necessary for the sector’s expansion.
Moreover, TAAI underscored the need to simplify visa requirements and encourage visa-free entry for tourists, which it believes could significantly enhance foreign tourist arrivals. The association also called for a reduction in Aviation Turbine Fuel (ATF) costs to pre-pandemic levels, arguing that this move would improve air travel accessibility and affordability, further stimulating the travel industry.
Additionally, TAAI is advocating for a more favourable GST structure that allows input tax credit for holiday businesses. The association contends that such a structure could lead to more affordable hotel stays, making accommodations more accessible to tourists and encouraging greater investment in the sector.
By addressing these critical areas, TAAI believes that the government can significantly boost the travel and tourism industry, contributing to broader economic growth and development.
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