Fueling India’s 2047 Vision: Why the 2025-26 Budget is Critical for Hotels

Press_Note_Pre_budget_recommendation_2025-2026.pdf

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The hospitality sector is more than just a service industry; it is a powerful engine for social and economic transformation. As we approach the Union Budget 2025-2026, the Hotel Association of India (HAI) has laid out a strategic roadmap to ensure the industry can meet the ambitious goals of the India Tourism Vision 2047.

Did you know that every single hotel room creates two direct jobs and an estimated eight indirect jobs? Beyond employment, hotels are essential pillars of tourism infrastructure, standing alongside roads, railways, and airports. Despite this, the sector still lacks the full recognition it deserves to reach its peak potential.

Key Recommendations for the Upcoming Budget

To bridge the gap and make India a global tourism leader, HAI has proposed several pivotal policy interventions:

• Infrastructure Status for All: HAI is calling for the removal of restrictive qualifiers, urging that all hotels and hotel projects across India be accorded "Infrastructure" status to facilitate investment.

  
  

• GST Rationalization: To remain competitive with other Asian destinations, HAI proposes reducing the 18% GST on rooms priced above ₹7,500 to 12%.

  
  

• Industry & Agriculture Parity: By allowing hotels to access lower utility rates and property taxes similar to the Industry and Agriculture sectors the government can support better returns on investment.

  
  

• Ease of Doing Business: The association advocates for a digital single-window clearance platform to streamline the currently lengthy and cumbersome process of obtaining licenses and NoCs.

  
  

• Boosting Consumption: Recommendations include lowering tax rates for individuals and non-corporate entities to put more discretionary spending power back into the hands of citizens.

For a detailed look at the recommendations, you can view the official document here: