How will Budget 2023 affect the tourism industry

Tourism contributes to more than 15 percent of jobs in India, as per 2022 figures by the Ministry of Tourism. The recent Union Budget was a mixed bag for this industry. The good news came from announcements to give a boost to domestic tourism. But for those who cater to international travel, the budget was disappointing. There is an increase in tax collected at source (TCS) from 5 percent to 20 percent. Domestic travellers who want to travel abroad will have to pay 15 percent more for TCS as compared to earlier- substantially increasing the costs. 

Independent journalist Aruna Chandaraju spoke to two senior persons from the travel industry from Hyderabad-Valmiki Hari Kishan and Siraj Ansari- who spoke about the consequences of this tax increase on the people from travel industry as well as potential international travellers from India

Reference

Tourism and Hospitality sector is one of the largest employment generating sector in India: Shri G Kishan Reddy
‘Mission mode’ for tourism in Union Budget, but no increase in allocation - The Hindu
INDIA TOURISM STATISTICS 2022

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