Story exclusively reported by T3; some of the excerpts below:
“The minister has also requested a comprehensive review of GST, suggesting a 12% GST for all accommodation classes with full setoffs, a 12% GST option for restaurants with full setoffs, and a 1.8% GST for tour operators,” said Aashish Gupta (FAITH).
“I’ve witnessed various tourism ministers, but I can proudly say this is the first time we have such an open-minded, intelligent minister,” said Bobby KS Sawhney (ITTA).
“The government needs to balance income tax policies concerning GST/TCS,” said Jyoti Mayal (TAAI).
In a move that signals a fresh and proactive approach to India’s tourism sector, the newly appointed Tourism & Culture Minister, Gajendra Singh Shekhawat, convened a meeting with heads of travel trade associations to discuss the industry’s challenges and opportunities. The meeting, held at the Ashok Hotel on June 21, was marked by constructive dialogue and a series of forward-looking proposals aimed at making India a year-round destination for global tourists.
There were over 22 representing associations and each of them were given time to speak, out forth the list of challenges and opportunities. V Vidyavathi, Secretary of Tourism, Suman Billa, Additional Secretary, Manisha Saxena, DG Tourism, Gyan Bhushan, Sr. Economic Advisor to the Ministry were also present at the event.
Minister Singh’s call for suggestions and inputs was met with enthusiasm by industry leaders, who praised his go-getter attitude and willingness to address their concerns head-on. The meeting resulted in a comprehensive set of recommendations by the associations followed by the minister’s emphasis on the collaborative efforts needed to achieve the goal of making India a 365-day destination.
Aashish Gupta, representing the Federation of Associations in Indian Tourism & Hospitality (FAITH), elaborated on several important suggestions. FAITH proposed identifying the top 100 tourism cities and preparing them for future demands. The association’s body emphasised granting hotels infrastructure status to access long-term funds, which would double India’s branded accommodation capacity and attract more foreign and inbound tourists. It was also recommended to increase the inbound tourism budget based on a percentage of foreign exchange earnings, making visas free for inbound tourists to enhance global competitiveness, and hosting India-themed evenings in key source markets abroad.
FAITH also suggested establishing a travel agent insurance fund to protect against airline defaults, administered through NCGLT with a dedicated corpus. It advocated for a one-nation policy for seamless tourism transport across India and emphasised the need for modular and skill-based tourism and hotel management education to attract young talent from tier 2, 3, and 4 cities. Specific plans were proposed for MICE, adventure tourism, heritage and cultural tourism, film tourism, and cruise tourism to boost their attractiveness for both inbound and domestic tourists.
Gupta expressed satisfaction with the tourism minister’s business planning approach to address these challenges and enhance competitiveness. The minister, he informed, has also requested a comprehensive review of GST, suggesting a 12% GST for all accommodation classes with full setoffs, a 12% GST option for restaurants with full setoffs, and a 1.8% GST for tour operators. Gupta stressed the need for ease of doing business initiatives between the center and states to standardise the industrial status of hospitality, which would help reduce accommodation costs and promote growth. Some recommendations should be presented to the finance minister for the budget, while others should be included in a 100-day action plan, he added.
Bobby KS Sawhney, Managing Director of Bakshi Transport Service (P) Ltd & Hony. Secretary of the Indian Tourist Transporters Association highlighted key issues as well including the restrictions on luxury vehicles without speed governors and lack of financial support for vehicle purchase and modifications. Sawhney expressed concerns to T3 about the regulatory challenges facing luxury tourist vehicles, which are required to have speed governors, limiting their speed to 80 km/h. He emphasised the impracticality and embarrassment of these regulations, especially in transporting high-profile clients.
Additionally, Sawhney called for improved loan conditions to support vehicle upgrades, noting current financial constraints hindering industry competitiveness. He explained that financial institutions and nationalised banks don’t provide loans for new luxury vehicles until they are registered. “This forces us to cover the full cost upfront. Additionally, luxury vehicles from some manufacturers arrive in basic condition and need extensive modifications, costing an extra 20-25 lakh rupees. Without financial support, it’s challenging to afford these upgrades, hindering our competitiveness in the tourism industry. We asked the government for better loan conditions, and the minister responded positively.”
“I have been part of this association for around 30-32 years and have attended government meetings for nearly 25 years. I’ve witnessed various tourism ministers, but I can proudly say this is the first time we have such an open-minded, intelligent minister. Fantastic! The minister’s vision for tourism over the next five years was impressive, encouraging everyone to openly share their thoughts and suggestions,” said Sawhney.
He also commended the minister’s proactive stance on boosting off-season business and ensuring ongoing support through regular meetings, calling it a highly productive interaction.
Speaking about the minister’s approach to trade’s concerns, Rajiv Mehra, President, IATO, said that he listened very patiently to everyone and made notes. “I had put up our points which included posting of officers from the Ministry of Tourism and the Indian embassies, in the same way as Ministry of Commerce officers are posted abroad. Similarly for the incentive schemes like the MDA or SEIS were requested in a new format. We even talked about promotions abroad which is roadshows and FAM trips,” he added.
“To me he looks like a very dynamic tourism minister,” shared Mehra. “The Prime Minister had said that he will take many steps this time to ensure that tourism, the foreign tourist arrivals into India increases many folds. I think with this thing in mind, the Ministry of tourism has been given to Gajendra Singh Shekhawat ji who besides being from Jodhpur is aware of tourism. I am quite hopeful with the dynamic approach this Minister has, tourism will grow many folds with inbound tourism increasing with which the employment in India in various sectors directly or indirectly,” he added.
Congratulating the Minister for organising this interaction meeting with stakeholders within just 15 days of taking office, Jyoti Mayal, President TAAI called this an impressive and commendable feat. TAAI, represented by Mayal, raised several points and suggestions during the meet. With the significant rise in domestic tourism, the association emphasised the need for increased responsibility and quality checks from service providers. They suggested that the Ministry of Tourism expedite the recognition of trained staff and IATA agencies to enhance service provider accountability, ensuring better services for tourists. Mayal highlighted that TAAI can significantly contribute to this initiative.
Also, with India hosting the World Heritage Council meeting this year, involving over 90 countries, it was recommended that Indian Embassies and Consulates vigorously promote India as a preferred destination through roadshows abroad. Despite having some of the best heritage sites, Mayal pointed out the need to improve cleanliness and hygiene at these sites.
TAAI also stressed that GST on inbound tourism and TCS on outbound tourism negatively affect Indian agents, as overseas online players avoid these taxes. This results in lost GST/TCS revenue for the Ministry of Finance (MOF) and lost income tax revenue, as profits generated by overseas agents escape taxation. The government needs to balance income tax policies concerning GST/TCS.
The association expressed concern about members losing money due to airline bankruptcies. They suggested implementing a module like RERA, insurance embedded in fares/taxes, or a lien over a portion of airline assets with the government to protect agents and consumers from financial losses.
To double tourism in the coming years, it was suggested that hotels and other service centers be granted industrial status (as done in 11 states). This will help India accommodate the anticipated surge in tourists. Further, emphasis should be placed on promoting Buddhist tourism, given that India hosts the most significant sites related to the life of Mahatma Buddha, from his birth to enlightenment and passing. Currently, China and other neighboring countries benefit the most from Buddhist tourism, asserted Mayal.
Representing ASSOCHAM (Associated Chambers of Commerce & Industry of India), Poonam Kaura – partner Government & Public sector and association’s Co Chair person, laid emphasis on sustainable tourism, capacity building of destinations at the ground level, international promotion of Indian tourism, using technology on every platform, and focusing on two aspects of ASSOCHAM’s views – sustainability preparedness and global exposure.
She also shared the following points, which the minister highlighted at the end of the meeting: creation of task force, need for better infrastructure, managing overcrowding at existing destinations, tax issues, incentives on foreign currency, marketing strategy, off-season tourism incentivisation, behavioral change/responsible tourism, destination decentralisation and new destination development, enriching the culture, and quarterly meetings for the industry and government to share views.
Amaresh Tiwari, Vice Chairman, ICPB, highlighted several key challenges during the meet: “There is a lack of focused approach on MICE, insufficient proper information and intelligence, and hurdles in ease of doing business. We face a lack of institutional support and bidding support/funding, alongside needing a stronger marketing campaign and re-skilling initiatives. Government support is crucial, especially given the high tax structure.”
He also offered suggestions to address these issues and said, “We need to create India’s own story and let the world know through exhibits and roadshows at all MICE shows like IMEX, IBTM, AIME, and IMICE. It’s essential to bid and invest in hosting future international events and to allow ICPB to play an effective role as the National Convention Bureau.”
TAFI, another association invited by the Union Minister, presented four major suggestions for the Ministry to consider. First, they requested easier access to MOT approval for their members. Second, they proposed creating priority access to high-demand and religious sites for NRIs and Indian-origin foreign nationals and their families. Third, they emphasised improving access to hidden gems in India, such as Hampi, and suggested upgrading Vijaynagar airport and starting flights from Agra to Ayodhya and Varanasi. Lastly, they recommended including insurance in airfares to protect agents and travellers from airline defaults. From TAFI, Anil Kalsi, Vice President and Dinesh Kumar Secretary NI attended the meet.
Further, sharing his thoughts on how and why Golf Tourism plays an important role for country’s tourism, economy and employment in front of the minister, Rajan Sehgal, President, IGTA ( India Golf Tourism Association ) & Co Chairman, PHD Chamber of Commerce- Tourism committee, highlighted that India is the only country which can have Golf 365 days.
“According to surveys, golfers spend 40-45% more than typical travellers and stay longer. Countries like Thailand, Malaysia, and now Vietnam attract many golfers due to their aggressive golf tourism campaigns and friendly golf courses. Approximately 600,000 golfers in Scandinavia, limited by their weather, often take charters to Thailand and Vietnam to play 2-3 rounds of golf over the weekend. Why not India? We have golf 365 days from Jammu & Kashmir till deep South,” said Sehgal.
He suggested that the Ministry of Tourism should participate in international golf travel marts alongside golf tour operators and bid to host one of these marts in India. Sehgal also recommended collecting feedback through video interviews with departing tourists or golfers of different nationalities at airports, as these testimonials could significantly enhance marketing and promotional activities targeting foreign tourists.
In addition to promoting MICE, weddings, and the Buddhist circuit, Sehgal emphasised the need to include golf in these segments. He also called for the development of golf courses with accommodation, conference facilities, and event spaces in locations like Agra, Varanasi, Goa, and Aurangabad. Sehgal also represented the suggestive measures collated by the tourism committee of PHD Chamber of Commerce & Industry (PHDCCI),
Besides these, representatives from other key stakeholder associations delivered five-minute remarks, each covering key issues and their suggestive solutions. These included the Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII), Association of Domestic Tour Operators of India (ADTOI), Tour Guides Federation of India (TGFI), Federation of Hotel & Restaurant Association of India (FHRAI), Hotel Association of India (HAI), India Convention Promotion Bureau (ICPB), Indian Heritage Hotels Association (IHHA), Adventure Tour Operators Association of India (ATOAI), World Travel & Tourism Council (WTTC), All India Resort Development Association (AIRDA), Indian Association of Amusement Parks & Industries (IAAPI), Pacific Asia Travel Association (PATA), Indian Food Tourism Organization (IFTO), Responsible Tourism Society of India (RTSOI), Confederation of Hospitality, Technology and Tourism Industry (CHATT), International Buddhist Confederation (IBC), and Association of Buddhist Tour Operators (ABTO).
