‘ Infra investments, new special tourism zones likely to boost hospitality sector’

Increased investments in infrastructure and five special tourism zones will spur growth for the hospitality and tourism industry, say the industry players.

Jean-Michel Cassé, Chief Operating Officer - India and South Asia, AccorHotels, said: “While there are no direct provisions in the Union Budget for the hospitality industry, the sector is a significant beneficiary of the government’s measures aimed at bolstering connectivity through its enhanced focus on aviation and railways.”

Regional connectivity is poised to improve as select airports in tier 2 cities will be developed or ramped up for operations through Public Private Partnership mode.

There are plans to establish five special tourism zones in partnership with the States in the next financial year and introduce Incredible India's second global campaign to strengthen India’s position as an attractive tourist destination. Cassé said: “This will spur inbound and domestic tourism, driving significant growth opportunities for the hospitality industry.”

The Budget also focused on developing road infrastructure, gave impetus to manufacturing sector and affordable housing, he added.

Cassé further said: “We see this push on infrastructure development as a catalyst for emergence of a greater number of new industrial cities around India’s industrial transport corridors and thus, creating new development opportunities for hoteliers.”

Aurvind Lama, co-founder and Chief Executive Officer of travel start-up Travelyaari, said in addition to infrastructure development, the Budget gave importance to technology development.

“Focus on improving internet and broadband connection in rural areas will go a long way to digitise cashless economy and connecting them to the main stream,” he said and added that when the country moves towards cashless economy and is inclusive, it will promote tourism in the long run.