The Union Budget 2022-23 might have favoured infrastructure, technology, skill development and health but it has been disappointing for the hospitality industry. Experts from the industry state that the Union Budget 22-23 has made almost no reference to the industry’s recommendations such as tax relief, utility tariffs, Infrastructure status and financial assistance.
The Union Budget 2022-23 brings forth the Extension of the Emergency Credit Line Guarantee Scheme (ECLGS) and allocation of additional INR 50,000 crores for hotels and the hospitality sector till March 2023 proving to be a relief for the hospitality industry.
Along with this the FM also announced the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) scheme, which is expected to facilitate additional credit of INR 2 lakh crore for micro small enterprises and expand employment opportunities.
The budget is also inclusive of aggressive infrastructure development with eight ropeways, an additional 25,000 km of National Highways, 400 new Vande Bharat Trains with modern facilities, etc.
The introduction of the revolutionary ePassport in the Union Budget received a lot of appreciation from the travel trade as well as from the hospitality industry. According to the industry experts, all these will be instrumental in encouraging both international and domestic travellers to explore the country with ease and give a new lifeline to hospitality brands of all sizes.
To summarise the industry sentiments, the hospitality industry experts have expressed mixed reactions to the Union Budget 2022-23. According to a report in Hospitality Biz with industry have shared their opinions as follows :
Amrut Mehta the Director of Little Italy stated that “the union budget brings a lot of hope as businesses and individuals look forward to receive help from the government in these trying times. The pandemic has been tough and businesses have suffered due to government induced restrictions and lockdowns. The extension of ECLGS by the finance minister is a boon to the hospitality sector. This move will help the MSME sectors to cope up with the risks arising out of COVID induced challenges.”
Major Dinesh Sharma, Founder Academy of Pastry & Culinary Arts thinks that
“The government’s vision of developing a skill based education system will get a new direction with this year’s budget announcement.”
Sibasish Mishra, Founder & CEO, BookingJini claims that “no significant direct announcement impacting Travel, tourism and hotel though there is an extension of Emergency Credit Line Guarantee Scheme (ECLGS) upto March 2023 is a welcome move. The same has been further expanded by 5000 crores for the Hospitality industry. This will help the cash strapped hotel entrepreneur to bounce back from the burden and losses of covid19.
He also added “The E-passport move will make the ease of travelling abroad much easier, travellers who already have been desperately waiting to go abroad since 3 years due to travel restrictions will avail this facility the most and we will witness surge in outbound tour. The Budget travellers’ segment which compromises more than 66% of the traveler will look forward for a great experience under Vande Bharat Trains in near future thus boosting tourism and hotel industry. These trains will be not only be energy efficient but also cheaper, faster and safer”