Impact of Budget 2021-22 on the tourism industry
The Centre has decreased the budget allocation for the Ministry of Tourism from Rs 2500 crore in the last year’s budget to Rs 2026.77 crore this year. This 19% decrease and the lack of direct support in the 2021 budget have left the travel industry shattered and disappointed.
Though the budget has laid out proposals for supporting railways, roadways, airports, and ports, no measures have been taken to support the small companies. This may help in encouraging tourism in the long run but immediate plans should be implemented for micro tourism entrepreneurs for the critical revival of tourism. However, this had not been proposed in this year’s budget.
Since no such proposals were made in this year’s budget, the tourism industry is in a state of deep dismay. The tourism and travel industry is already trying to overcome the losses suffered during the COVID-19 pandemic and nationwide lockdown, and now the 19% decrease in the budgetary allocation this year has further worsened the situation.
Undoubtedly, the tourism industry will fully recover only after the vaccination is undertaken in the entire country, which is not possible until the next financial year. Though the tourism sector is trying to reach out to the government stakeholders in order to come out of this recession period, everything is going in vain. Moreover, the budget announcements in February have snatched the revival opportunities from the tourism industry and left it to die in the crisis of the century.