Budget 2026 Spurs Tourism Growth, Leaves Policy Gaps

As Union Budget 2026 positions tourism and hospitality as key growth engines, industry leaders in the fields of travel, hotels, air, education, and real estate have hailed the focus on connectivity, skilling, sustainability, and experiential tourism, although they also point out where additional changes are still needed.

Vikram Lalvani, Managing Director/CEO, Sterling Holiday Resorts indicated that the Budget represented the transition to purpose-guided trips based on wellness, heritage, nature and spiritual circuits.

Key Highlights

• Budget 2026 boosts tourism through connectivity and skilling
• Industry welcomes sustainability push but flags policy gaps
• High-speed rail and digital platforms to drive regional growth

Sanat Hooja, Partner, Machan Resorts observed that now tourism development is being geared towards environmental responsibility and development based on conservation.

Rajesh Magow, Co-founder and Group CEO, MakeMyTrip, said the rationalisation of TCS in overseas tours was welcome, and Aloke Bajpai, Group CEO, Ixigo, said investments in rail and highway accessibility and affordability will rise.

Arjun Baljee, ICONIQA Founder and Royal Orchid Hotels President, said it could be outlays of infrastructure but it is not about building roads, but creating access to experiences.

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JB Singh, President and CEO, InterGlobe Hotels and Manju Sharma, MD, Jaypee Hotels emphasized on skilling, digital platforms, and eco-tourism. Accor India, VP, Reema Diwan said the National Institute of Hospitality was a great leap toward developing a solid talent source.

Hotel Association of India President, KB Kachru, spoke laudingly of the momentum, but emphasised the need to move to infrastructure status and rationalise GST, whereas Jyoti Mayal, Chairperson, THSC, considered guide skilling and lower TCS will revolutionise hospitality education and travel facilitation.

Sarbendra Sarkar, MD, Cygnett Hotels, Ritwik Khare, CEO, ELIVAAS, and Sumit Mitruka, Founder, Summit Hotels, remarked that the high speed rails and trekking routes will open the regional destinations. Anil Chadha, MD, ITC Hotels, also said that digital tourism, and medical tourism will help increase the global competitiveness of India.