The travel and tourism industry continues to thrive beyond the initial surge of post-pandemic travel. No longer just a luxury, travel has become an essential part of household spending, reflecting a shift in consumer behavior and priorities.

The Budget 2025 introduces several measures aimed at boosting the sector, particularly by increasing disposable income. The proposed tax rationalization is set to benefit the middle class, as the tax-free income threshold rises from Rs 7 lakh to Rs 12 lakh annually. This change translates to annual savings of Rs 80,000 for individuals earning Rs 12 lakh, making discretionary spending—such as travel—more accessible.

Further strengthening the tourism sector, the government has outlined plans to develop 50 prime tourist destinations in collaboration with state governments. This initiative aims to improve infrastructure, services, and overall visitor experiences, positioning these locations as key attractions.

Air travel, which has witnessed remarkable growth in recent years, is set to receive another boost. The UDAN scheme, which has significantly improved connectivity to smaller towns and facilitated affordable air travel for millions, is being expanded. The newly proposed version of the initiative will extend regional connectivity to 120 additional destinations, targeting 4 crore passengers over the next decade. This expansion will also focus on enhancing infrastructure for helipads and airports in hilly and remote regions, particularly in the North-East.

With better connectivity playing a crucial role in the tourism industry’s growth, these measures are expected to significantly enhance accessibility and affordability. The benefits will extend across various segments, from airlines and hospitality providers to online travel platforms and travel-related industries.

As the government prioritizes tourism development and infrastructure expansion, the sector is poised for sustained growth, offering new opportunities for businesses and travelers alike.

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