Budget 2026: Tourism & hospitality sector reiterate demand for infra status

Simplified visa process, increased marketing spend to boost FTAs

The tourism and hospitality sector’s call for infrastructure status has gained steam, as representatives from the industry met Finance Minister Nirmala Sitharaman on Thursday for pre-Budget consultations.

 

According to sources, industry representatives also raised demand for simplification of visa processes along with increased budgetary allocation for marketing spends. Foreign Tourist Arrivals (FTA) into India have not yet reached the pre-pandemic numbers.

 

Additionally, medical tourism is expected to get a push in the upcoming Union Budget 2026-27, sources said. Sangeeta Reddy, joint managing director, Apollo Hospitals and Abhay Soi, chairman and managing director, Max Healthcare were also present at the meeting.

 

“Infrastructure status has been a long standing demand, which opens doors to loans on lower interest rates and other concessions,” said sources, adding, “a major demand is that the budget for overseas promotion, which was slashed to negligible amounts in the last few budgets, needs to be raised substantially.”

 

The lack of overseas promotion, coupled with complex visa processes have been a hindrance to FTA recovery in the last few years. The allocation for overseas promotion and publicity was slashed to ₹3 crore in the 2025-26 Budget, a tenth of the year before allocation.

 

In last year’s Budget, hotels from 50 top destinations were included in the infrastructure Harmonious Master List. However, to fully unleash the immense growth potential of the tourism and hospitality sector in the country, this reform has to be implemented across the country, they argued.

 

Meanwhile, to woo more foreign tourists into the country, industry body representatives and stakeholders argued the need for simplified visa processes, much like competitive south-Asian nations. Simplified processes, increased categories, and the provision of visa free facilities can help boost MICE (Meetings, Incentives, Conferences and Exhibitions) and medical tourism in the country.

 

Meanwhile, hotels have also sought clarity on GST rates applicable on room rates and further requested the removal of input tax credit for rooms priced under ₹7,500.

 

Representatives from Indian Association of Tour Operators (IATO), VFS Global, and Tourist Guide Federation were present in the meeting along with Asmita Joshi of Airbnb, and Rajesh Magow of MakeMyTrip.