UNHAPPY TOURISM & HOSPITALITY IN UNION BUDGET 2021

Ms.K.Sindhuja, Asst.Prof
Sankara Institute of Management Science

         “Don’t tell me what you value, show me your budget, and I’ll tell you what you value.”― Joe Biden

“Just multiple times has the Budget followed a compression in the economy? This time, not at all like previously, the circumstance is because of a worldwide pandemic. Financial plan 2021 gives each chance to the economy to catch the speed and develop economically.

It was very astonishing that the travel industry and accommodation area couldn’t discover a spot in the financial plan.

IGNORANCE….

            The tourism, travel & hospitality industry is fighting the worst from the impact of COVID 19 in the century crisis, a recovery from which will not be seen as a minimum for the next financial year before vaccination is completely undertaken in both source and destination markets with no observed side effects.

            “With the hypotheses of global travel remaining generally blocked off during most of 2021, we are genuinely idealistic about the homegrown travel blast this year. To stimulate domestic travel industry and make India an elite traveler objective, we expected that the budgetary assignment would be in any event expanded by half to 2250 crore in this financial plan.

The Center has sliced the budgetary designation for the Ministry of Tourism by 19% from Rs 2,500 crore in 2020-21 to Rs 2026.77 crore this year. The spending plan has dispensed Rs 1088.03 crore for improvement of the travel industry foundation for FY 2021-22 contrasted with Rs 1655 crore last financial.

Then, the spending plan has raised the exposure reserve from Rs 590 crores last financial to Rs 668.72 crore in FY 2021-22. Out of the ₹668.72 crore apportioned towards advancement and exposure, ₹524.02 crore is for the abroad market and ₹144.70 crore has been saved for homegrown travelers.

The business was anticipating a significant push as the movement, the travel industry and neighborliness industry is the most seriously hit because of COVID-19. The Hospitality and Tourism industry was looking forward to some relief measures to lift this most severely affected industry by COVID19. Instead, it has yet again completely and fully chosen to ignore.

Numerous introductions and suggestions have been submitted to the Finance Ministry by industry affiliation FAITH for the restoration and endurance of the travel industry. Be that as it may, the Budget 2021-22 didn’t surrender any of the interest of the business.

Conclusion:

At the consumer level, as tourism begins to recover from serious pandemic losses, it would be important to encourage foreign and domestic travel. By introducing an all-round GST reduction, one immediate way to boost. The present GST rates of 12 percent – 18 percent could demotivate recreational travel for the financially cautious post-pandemic consumer.