tourism sector

Through a memorandum, PHDCCI presents suggestions for the tourism sector, which suffered a major setback during the covid period. According to Invest India (National Investment Promotion & Facilitation Agency), the travel market in India is projected to reach USD 125 billion by FY27, from an estimated USD 75 billion in FY20

With the Annual Union Budget all set to be presented on 01 February 2023, the PHD Chamber of Commerce & Industry released a pre-budget memorandum. The memorandum suggests five-pronged strategies to revitalize private investments along with taxing real income and not notional income and support to industries that suffered majorly because of covid. It also asks for rationalization of multiple GST Rates into 2-3 tier GST rates and decriminalization of offences in GST Law by increasing threshold from Rs. 5 Crore to Rs. 20 Crores.

The memorandum also has suggestions for the tourism sector, which suffered a major setback during the covid period. According to Invest India (National Investment Promotion & Facilitation Agency), the travel market in India is projected to reach USD 125 billion by FY27, from an estimated USD 75 billion in FY20.

The Agency claimed that in FY20, the tourism sector in India accounted for 39 million jobs, which was 8.0 per cent of the total employment in the country. By 2029, it is expected to account for about 53 million jobs.

The memorandum states, “Tourism sector is a major engine of economic growth and an important source of foreign exchange earnings in many countries including India. The sector provides opportunities to skilled as well as unskilled job seekers, thereby, providing employment to all sections of society.”

It further adds, “In India, the majority of the travel and tourism industry is composed of MSMEs. In this regard, the development of tourism infrastructure is of paramount importance and should be accorded priority to provide a better experience, facilities and safety to the tourists and thereby enhance employment creation in the country and facilitate the growth of MSMEs.”

According to the industry forum, 2023 is going to play a crucial role in rejuvenating the tourism sector which would be able to earn desirable revenue again.