Union Budget 2022- Announcements for the Tourism Sector
In her Budget 2022-2023 speech, the Hon’ble Finance Minister mentioned the adverse effects of the pandemic. The effects were felt massively by the tourism sector which faced loss of revenue due to the travel restrictions imposed as a result of the pandemic.
The Finance Minister made a few announcements regarding policies and project which will certainly impact the Indian tourism sector in a positive way and serve to strengthen the recovery.
Firstly, the Hon’ble FM announced that the Emergency Credit Line Guarantee Scheme has been extended till March 2023 and that the guarantee cover would be expanded by INR 50,000 Cr to INR 500,000 Cr, with the increased amount earmarked exclusively for the hospitality sector and related enterprises. This additional lifeline is certain to help thousands of MSMEs which derive most of their revenue from tourism related activities.
The Minister also announced that the National Ropeways Development Program will be taken up on PPP mode with the aim of improving connectivity and convenience for commuters, besides promoting tourism. She indicated that this may also cover congested urban areas, where conventional mass transit system is not feasible. It is expected that contracts for 8 ropeway projects for a length of 60 km will be awarded in 2022-23.
The roll-out of E-Passports will take place between 2022-2023, providing additional safety and security while contributing to reduced wait times at airport thanks to the features that are brought in by E-Passports.
The Government is also continuing its push to improve connectivity, which overall will have a positive impact on tourist across the nation but particularly in border villages and the North-East Region, thereby opening up more avenues for the growth of tourism activities in these areas.