Arun Singh, Global Chief Economist, Dun & Bradstreet
Hospitality
Major announcements-
The budgetary allocation for the Ministry of Tourism increased to ` 24 bn in FY24 from 13 bn (RE) in FY23
The budgetary allocation for the Ministry of Culture to remain at ` 34 bn in FY24 as RE in FY23
The outlay of the Integrated Development of Tourist Circuits around specific themes (Swadesh Darshan) is estimated at 14.2 bn (BE) for FY24 from 6 bn (RE) in FY23
Quote from Arun
“The government’s allocation for the development of tourist circuits and revival of regional air connectivity will help revive the footfall of tourists and provide a boost to the tourism industry. Selection of 50 destinations with focus on both domestic and foreign tourists will help respective states to generate revenue. Encouraging eco-tourism opportunities will support the governments’ mission for green growth and development of local communities. The need to support One District One Product (ODOP) concept by creating sufficient infrastructure would be realised by the government’s initiative to encourage states to set up a Unity Mall in their state capital or most prominent tourism centre or the financial capital. This would help MSMEs and artisans to formally market their products to domestic and foreign tourists in a targeted manner. All these initiatives are expected to support the revival of the pandemic-affected hospitality and tourism sector to an extent. We have thus assigned a marginally positive rating to the sector”
