KB Kachru, VP-Hotel Association of India (HAI) sharing his disappointment on Union budget 2021 said, “It is a missed opportunity for the tourism and hospitality sectors. The industry, despite being a major contributor in India’s GDP and a major employment generator, deserved tourism related announcements in the budget speech but was completely neglected. HAI had forwarded its expectations many times to the Centre including industry status, rationalization in tax rate, GST relief, relief for liquidity problems, interest payment restructuring etc. The association was expecting some relief for the small and medium tourism enterprises.”
“We believe there is a long road to travel before the sector ultimately bounces back to its past glory. The pandemic has left a lasting impact on the segment and, the support of the government in recovery is extremely critical,” stated Kachru.
“We expected some tax-deductible relief measures as a policy for Indians to travel within India. As an industry body HAI will continue to urge the government to provide short term relief and long-term policy support. We are only hopeful that, even though missing from the budget statement, the previous year, this year too will see government intervention in the form of policy measures to address the specific bottlenecks to growth of the sector and help the industry unlock its potential and continue its contribution to the country’s future economic growth. The industry needs government support without which we fear the impact will be irreversible with unemployment and its impact on millions of livelihoods, potential NPAs owing to lack of financial support and lastly a lasting impact on the country’s GDP in the long run,” Kachru added.
