From Editorial Desk
In recent past, the tourism departments of various states of India have been visiting the expos taking place in foreign countries to showcase and promote the tourist attractions of their states. This website has covered such events (See the Travel menu segment of this website). In the Budget 2026, the government has presented certain policies which the travel and hospitality industry leaders see as welcoming to their sector.
Following are some representative comments from this sector regarding this –
“The Union Budget 2026 takes a constructive step towards addressing some long-standing operational challenges faced by outbound travel businesses. The reduction of TCS on overseas tour packages to 2% is a welcome move and will ease immediate cash-flow pressure for both travellers and agents, particularly in high-volume, cross-border transactions.
Effective implementation will now be critical. Clear guidance on refund timelines, reconciliation processes and system readiness will determine how quickly this relief translates into day-to-day business operations. Beyond taxation, access to formal credit for booking-led travel businesses remains an important gap, as traditional lending frameworks still do not fully account for advance collections and extended settlement cycles.
As outbound demand continues to expand from non-metro markets, sustained policy focus on international connectivity, efficient payment systems and regulatory simplicity will be important to support long-term growth. Overall, the Budget signals positive intent, and targeted follow-through can further strengthen the operating environment for Indian travel businesses.”
—Chirag Agarwal, Co-founder & CEO, TravClan
“The Union Budget 2026–2027 sends a clear signal that the Indian tourism and hospitality industry is one of the most important drivers of jobs and growth. Enabling this industry through initiatives such as a National Institute of Hospitality, talent upskilling and digital infrastructure are welcome steps.
Execution on the ground however, will define success in the long run. It must empower homegrown midscale hotels in Tier II/III markets to access modern solutions and a skilled workforce easily to thrive sustainably. At Hotelogix, we see this as a pivotal moment to support hotels in this segment with cloud-led, scalable technology that helps them ensure smarter operations and deliver consistently better guest experiences.”
—Aditya Sanghi, CEO of Hotelogix
These comments show that while the travel and hospital sector welcomes these policies of the government, they lay a strong emphasis on the efficient and time-bound execution of the policies on the ground. Only if the policies are implemented well shall the people benefit from them. The government must see that its policies bring tangible benefits to the people.
More to come. Watch this space for future posts.
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