Latest News | Several Indirect Measures in Budget for Hospitality, Tourism Sector: Deloitte

Mumbai, Feb 2 (PTI) While the Union Budget 2020-21 lacked direct benefits for the tourism and hospitality sector, the government has provided several indirect support measures like not burdening citizens with additional taxes and steps to strengthen the infrastructure, Deloitte India said.

"The Budget has disappointed the tourism and hospitality sector, though measures to strengthen infrastructure which may help the beleaguered segment," Deloitte India Partner Rajat Mahajan said in a statement.

He said, while the Budget has not burdened the citizens and industry with additional taxes, the travel and tourism sector was expecting direct benefits.

"This Budget may not have brought cheers, but the finance minister has provided several indirect support mechanisms to boost the sector. Initiatives across the class of tourism have been introduced covering safety, labour welfare, cleanliness, infrastructure spending and MSME (Micro, Small and Medium Enterprise) support," he noted.

Elaborating on this, Mahajan highlighted the indigenously developed automatic train protection system for passenger safety, the introduction of aesthetically designed Vista Dome LHB for better customer experience location and strengthening of urban Swachh Bharat Mission.

Other steps include modernising of existing health units at 32 airports, 15 seaports and land ports and proposed tax benefits for foreign aircraft lessors as domestic travel is expected to grow significantly in coming years.

Talking about access, he stated that an enhanced outlay of Rs 1,18,101 lakh crore for the Road Transport and Highways Ministry would help the tourism sector.

Metro services announced in 27 cities and that 'MetroLite' and 'MetroNeo' will be deployed to provide metro rail systems at much lesser cost with the same experience, convenience and safety in tier II and peripheral areas of tier I cities, will further enhance access, he said.

There was nothing specific on hotels and property owners, but some relief with Rs 15,700 crore provided by the government to the MSME and social security to be extended to gig and platform workers which may help food delivery staff, Mahajan added.

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