The announcement of Budget 2021 left the Indian travel and tourism industry disappointed. The Centre has officially reduced the budgetary allocation for the Ministry of Tourism by 19 per cent from Rs 2,500 crore in 2020-21 to Rs 2026.77 crore this year. In the last fiscal year, the budget allocated for development of tourism infrastructure was Rs 1655 crore. This figure has reduced to Rs 1088.03 crore for FY 2021-22.
The travel and tourism sector has been severely affected due the pandemic
Further, the publicity fund has been increased to Rs 668.72 crore in FY 2021-22. It was Rs 590 crores last fiscal. The travel industry was expecting more funds considering that it has been severely hit by the coronavirus pandemic. Over the course of the past year, many presentations and recommendations were submitted to the Finance Ministry by industry association FAITH. These recommendations were aimed at reviving the tourism industry However, the announcement of the budget came as a disappointment to all the major stakeholders in the tourism industry.
“Lack of immediate direct support in budget has disappointed the Indian travel and tourism industry,” Nakul Anand, Chairman, FAITH, commented. FAITH said: “Not addressing any of these critical measures in the budget announcement has thrown the industry into a state of shock and deep dismay.”