The announcements may lead to the emergence of new tourism destinations, an increase in inbound travel, and help hotels get access to credit at lower rates, say stakeholders
Nalanda, an ancient large Buddhist monastery, located near Patna, Bihar, is an UNESCO World Heritage Site. Image: Nicolas Economou/NurPhoto via Getty Images
Finance Minister Nirmala Sitharaman made a host of announcements related to the travel and hospitality sector on Saturday as she presented the Union Budget 2025-2026.
Majorly, they included streamlining e-visa facilities along with visa-fee waivers for certain tourist groups, along with developing prominent tourist sites. As part of the plan, 50 tourist destinations will be developed with states expected to provide land for infrastructure.
“To further boost tourism, hotels in the key destinations will be included in the harmonised infrastructure list, ensuring better access to financing and development support," she said.
Rajiv Mehra, president of the International Association of Tour Operators says, “Infrastructure status to hotels in these destinations would help them get access to credit at lower rates thus helping in reducing costs.”
Additionally, states that have demonstrated effective destination management on parameters such as tourist amenities, cleanliness, and marketing efforts are likely to receive performance-linked incentives.