Pushpendra Bansal, COO, Lords Hotels & Resorts, said, “The Union Budget 2026 reflects a steady and encouraging commitment towards strengthening India’s tourism and hospitality ecosystem. The continued focus on infrastructure development, regional connectivity, and destination-led growth will directly support travel demand, particularly across emerging leisure and pilgrimage destinations. Improved roadways, rail networks, airport expansion, and last-mile connectivity will significantly enhance accessibility to Tier II and Tier III markets.”
Highlighting the broader economic and sectoral impact, he added, “The emphasis on economic stability, employment generation, MSME support, and tourism skilling creates a stronger operating environment for the hospitality sector. Initiatives such as tourism skilling, training 10,000 tourist guides, and establishing a National Institute of Hospitality will help build a skilled, service-ready workforce for the industry. When consumer confidence improves and employment opportunities expand, travel becomes a priority rather than a discretionary spend. Support for MSMEs also strengthens the tourism value chain, from local vendors and transport providers to small businesses operating in emerging destinations.”
He further noted that focused investments in destination development, sustainable tourism, heritage circuits, and improved inter-city connectivity will enhance the overall traveller experience. “These initiatives will drive steady demand across leisure, business, religious tourism, weddings, and medical tourism segments, while allowing hospitality brands to respond better to evolving traveller expectations.”
At the same time, Mr. Bansal pointed out that there remains scope to ease operational challenges for the industry. “The budget did not restore the Input Tax Credit for hotels with room tariffs below ₹7,500, which continues to impact the profitability of budget and mid-scale hotels. Also, there was no reduction in the 18% GST slab for high-end room tariffs, which remains one of the highest globally.”
Looking ahead, he added that measures such as simplified visa procedures and formal industry and infrastructure status for the hospitality sector would help improve access to long-term financing and accelerate investment. “Overall, Budget 2026 reflects positive intent and provides momentum for sustained, tourism-led economic growth, with continued collaboration between the government and the private sector being key.”
