What has Budget 2026 announced for hospitality education?
Finance Minister Nirmala Sitharaman laid emphasis on the tourism sector in her speech presenting the Union Budget 2026 on Sunday, as she announced the upgradation of the National Council for Hotel Management and Catering Technology (NCHMT) to the National Institute of Hospitality, which will function as a bridge between academia, industry and government.
The Ministry of Tourism has been allocated ₹2,438.4 crore in Union Budget 2026, lower than the budgetary estimate of ₹2,541 crore in the preceding Budget. Last year’s revised estimate stood at ₹1,310.3 crore.
“The tourism sector has the potential to play a large role in employment generation, foreign exchange earnings, and expanding the local economy,” Sitharaman said while announcing her ninth Budget.
How has TCS on overseas tours been revised?
The government also announced that tax collected at source (TCS) rates on overseas tour packages have been revised to a uniform rate of 2 per cent from 5 per cent (or 20 per cent for amounts exceeding ₹10 lakh) under the Liberalised Remittance Scheme.
The move, experts say, lowers the cost barrier and will drive overseas travel volumes.
“The simplified flat 2 per cent TCS on overseas tour programme packages replaces the earlier two-tier structure, easing compliance and unblocking cash flows for travellers,” said Mahesh Iyer, managing director and chief executive officer, Thomas Cook (India) Limited.
What steps are planned for skilling and service quality?
The FM also proposed a pilot scheme for upgrading 10,000 guides in 20 iconic tourist destinations through a standardised, high-quality 12-week training course in hybrid mode, in collaboration with an Indian Institute of Management.
“The setting up of the National Institute of Hospitality and the upskilling of tourist guides will help improve service quality and enhance India’s position as a global tourist destination,” said Aloke Bajpai, group chief executive officer at ixigo.
A National Destination Digital Knowledge Grid will also be established, the FM said, to enable the digital documentation of all places of cultural, spiritual and heritage significance.
“This initiative will create a new ecosystem of jobs for local researchers, historians, content creators and technology partners,” she said.
How will adventure and heritage tourism be promoted?
In a push to adventure tourism, Sitharaman announced the creation of hike and trek trails, along with turtle trails near key nesting sites in the coastal areas of Odisha, Kerala, Karnataka, and bird-watching trails near Pulicat Lake in Andhra Pradesh and Tamil Nadu.
“India has the potential and opportunity to offer world-class trekking and hiking experiences. We will develop mountain trails in Himachal Pradesh, Uttarakhand, and Jammu & Kashmir, and Araku Valley in the Eastern Ghats, Podhigai Malai in the Western Ghats,” she said.
To promote heritage and cultural tourism, the FM proposed developing 15 archaeological sites, including Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace, into vibrant experiential cultural destinations.
Here, excavated landscapes will be opened to the public through curated walkways, and immersive storytelling skills and technologies will be introduced to support conservation labs, interpretation centres, and guides, she said.
What is planned for regional and thematic tourism circuits?
In the north-eastern region, Sitharaman proposed launching a scheme for the development of Buddhist circuits in Arunachal Pradesh, Sikkim, Assam, Manipur, Mizoram and Tripura. The scheme will cover preservation of temples and monasteries, pilgrimage interpretation centres, connectivity, and pilgrim amenities.
“The Budget’s renewed focus on tourism is a strong vote of confidence in an industry that creates livelihoods at scale, supporting local entrepreneurs, artisans, and communities across the tourism value chain,” said Anil Chadha, managing director, ITC Hotels.
“The proposed upgradation of the NCHMT, alongside structured guide skilling initiatives, will significantly strengthen service quality and global competitiveness in hospitality. The focus on adventure tourism trails along with development of Buddhist circuits across North-eastern states highlights the importance of responsible, experience-led growth,” Chadha added.
India will also host the first-ever Big Cat Global Summit with over 90 participating nations to deliberate on collective strategies for the conservation of big cats. The government also announced incentives for indigenised seaplane manufacturing through a viability gap funding scheme to promote tourism.
“The Budget reinforces the government’s sustained focus on travel and tourism as a long-term growth driver. The rationalisation of TCS on overseas tour packages is a welcome step that addresses upfront liquidity impact on Indian outbound travellers,” said Rajesh Magow, chair, FICCI tourism committee and co-founder and group CEO, MakeMyTrip.
“The continued focus on regional connectivity and destination development, along with an emphasis on skilling and the creation of a national digital repository for destinations, will help improve destination discovery and enhance the overall traveller experience,” he added.
 "FM proposes first-ever National Institute of Hospitality in Budget 2026")
