Finance Minister, Niramala Sitharaman, presented her maiden budget in the Indian parliament today, July 5, 2019. So how did Travel and Tourism fare?
The Indian Subsidiary of FCM Travel Solutions, the corporate travel business arm of the Flight Centre Travel Group and the largest retail travel outlet in Australia, reacted to this new budget. The company is headquartered in Brisbane and operates a network spanning over 90 countries across Europe, Middle East, Africa, Asia Pacific and the Americas.
Mr. Rakshit Desai, Managing Director, FCM Travel Solutions, Indian Subsidiary of Flight Centre Travel Group, shared his reactions:
“The Union Budget 2019, presented today by the honorable Finance Minister, Niramala Sitharaman, has quite a few takeaways for the tourism industry. The government’s continuous commitment towards building a better physical and social infrastructure is a commendable gesture.
“Several initiatives which the government has undertaken like the Pradhan Mantri Gram Sadak Yojana, Bhartamala and Sagarmala projects, Jal Marg Vikas, industrial corridors, and dedicated freight corridors are laudable and reflect how these infrastructural reforms will impact the tourism industry positively in the coming years. The UDAN Scheme which is designed to enable air connectivity to smaller cities is going to make air travel more accessible.
“The INR 70,000 crore capital credit infusion for PSU banks should facilitate the growth of consumer credit and accelerate consumption of travel experiences. Also, the decision to develop 17 iconic tourism sites into world-class tourist destinations will further help in boosting tourism in those regions and at the same time serve as a model for other tourism sites in the country.
“The launch of [the] railway station modernization program this year will also attract more travelers and enhance railway travel experience. Crude oil prices have relaxed, however, the cost of Aviation Turbine Fuel (ATF) remains a concern as ATF constitutes around 35 % of the total operating costs of an airline in India, while globally it stands at about 25%.”
