Government sources have said that the Indian government plans to cut down on taxes on travel and tourism and offer more incentive to the sector in the upcoming annual budget. The tourism industry in India is worth more than $210 billion.
The step is being taken with hopes to increase economic development and generation of employment. The country has also recently seen a surge in air travel given that airports are coming up all across the nation. Currently, according to reports, the tourism sector employs more than 40 million people and could potentially add up to 10 million more in the upcoming decade.
Sources have disclosed that Finance Minister Arun Jaitley plans to decrease hotel tariff rates by 28% and reward incentives to private companies.
Hotel industries like Taj and the Oberoi or even airlines like Jet Airways and tour operators like Thomas Cook are all expected to gain from this move. Additionally, domestic travel is now done mostly via online players like MakeMyTrip who will also be affected.
The government is also preparing to increase expenditure on constructing roads for tourist destinations and trains. Prime Minister Narendra Modi has also earlier said that plans to invest more in North-Eastern tourism are being ushered in.