Clarifying Tax Collected at Source (TCS) Policies

The recent increase in Tax Collected at Source (TCS) for overseas tour packages has raised significant concerns among both consumers and travel operators. The proposed hike from 5% to 20% risks deterring potential travelers and adding financial strain to operators already recovering from the pandemic. Industry bodies have called for a reduction of TCS to 2.5% to remain competitive and encourage bookings through Indian tour operators.

Revitalizing India’s Brand Campaign

Countries worldwide are strategically targeting Indian travelers through aggressive promotional campaigns. For example: Sri Lanka has waived visa fees for Indian travelers under a six-month pilot program, removing a significant barrier to entry. Australia launched the cricket-themed “Howzat for a holiday?” campaign, tapping into India’s love for the sport to attract tourists. India’s budget for overseas promotion of its tourism, however, has seen cuts in recent years, with only ₹3 crore allocated in 2018. To stay competitive, India must increase its investment in global tourism campaigns and update the “Incredible India” initiative to reflect modern trends and traveler expectations.

Ensuring Safety in Adventure Tourism

Safety remains a critical concern in the adventure tourism sector. Recent incidents have highlighted gaps in safety protocols and the need for robust guidelines. The government has already taken steps by formulating the Indian Adventure Tourism Guidelines, which include safety measures for activities like trekking, paragliding, and rafting. Key initiatives include: Establishing a National Board for Adventure Tourism to enforce safety standards. Creating a national and state-level rescue and communication grid. Introducing certification schemes for adventure operators to ensure competency and accountability. These efforts must be scaled and rigorously implemented to build trust and ensure that India’s adventure tourism sector grows responsibly.

Addressing Talent Shortage in the Hospitality Industry

The hospitality sector is facing a talent crunch, exacerbated by the COVID-19 pandemic. There is an urgent need to create Standard Operating Procedures (SOPs) for internships and skill development programs to nurture fresh talent. A focus on training and certifying young professionals will help address staffing shortages while maintaining quality standards. Partnering with educational institutions and providing incentives for upskilling initiatives will encourage more individuals to enter this field, ensuring the industry’s sustained growth.

Developing Infrastructure for Outbound and Domestic Tourism

To accommodate the growing interest in travel, the government must focus on building infrastructure, including new hotels, leisure facilities, and transportation networks. Standardized guidelines for infrastructure creation will ensure consistency and quality, making India a more attractive destination for foreign travelers while supporting the outbound tourism market.

Call to Action

With the tourism industry contributing nearly 9.2% to India’s GDP and supporting millions of jobs, the upcoming budget presents an opportunity to prioritize reforms and investments that will unlock the sector’s full potential. From policy clarity on TCS to increased funding for tourism campaigns, safety regulations, and talent development, federal support is essential to ensuring the continued growth and global competitiveness of India’s travel industry.