Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Further rationalisation of the Goods and Services Tax (GST) for domestic hotels and restaurants could strengthen India's tourism sector by making travel more affordable and encouraging higher demand, according to SOTC Travel Managing Director and CEO Vishal Suri. While welcoming the government's earlier reduction in the tax collected at source (TCS) on overseas tour packages and the lower GST on hotel accommodation, Suri called for additional policy support through tax reforms, infrastructure investment and improved connectivity. He said India's travel market continues to remain resilient despite global uncertainties, supported by rising disposable incomes, expanding transport infrastructure and growing demand from Tier-II and Tier-III cities.
Further rationalisation of the Goods and Services Tax (GST) applicable to domestic hotels and restaurants could provide an additional boost to India's tourism sector, according to SOTC Travel Managing Director and Chief Executive Officer Vishal Suri. He said policy measures aimed at reducing the cost of domestic travel, combined with continued infrastructure investment, could strengthen tourism's contribution to economic growth, employment generation and regional development.
Speaking to PTI, Suri welcomed the government's earlier decision to reduce the tax collected at source (TCS) on overseas tour packages to a uniform rate of 2 per cent, describing it as a positive step for the travel industry. He added that the government could now consider further GST rationalisation for domestic hotels and restaurants to make travel within India more affordable.
The GST Council had reduced the GST rate on hotel rooms with tariffs of up to INR 7,500 per night to 5 per cent from 12 per cent, without input tax credit, with the revised rates taking effect from September last year. The measure was introduced to reduce accommodation costs and support the growth of domestic tourism.
Suri said India's tourism sector continued to be supported by strong structural fundamentals despite global economic uncertainties. He noted that government investment in airports, roads and railway infrastructure, along with improvements in last-mile connectivity, had made travel more accessible across the country. He also called for continued investment in tourism infrastructure, destination development and regulatory reforms that simplify approvals and encourage private investment in the sector.
Commenting on the impact of higher airfares, Suri said travellers had become more conscious of value rather than reducing their travel plans. According to him, consumers are increasingly adapting by making bookings earlier, choosing flexible travel dates and selecting destinations that offer better overall value. He added that holiday decisions are now based on the complete travel experience rather than airfare alone.
Suri said Thailand, Vietnam, Bali, Japan, Singapore, Switzerland, France, Australia and New Zealand remained among the most popular international destinations for Indian travellers. At the same time, demand for premium travel experiences, including luxury rail journeys, cruises, wildlife safaris and seasonal holidays, continued to increase. Within India, he observed that spiritual tourism had witnessed notable growth in recent years.
Looking ahead, Suri said SOTC Travel planned to strengthen its omni-channel network over the next two to three years through a combination of company-owned outlets and franchise stores, with Tier-II and Tier-III cities expected to drive future expansion. He attributed this growth to rising disposable incomes, improving air connectivity, increasing passport penetration and greater digital adoption. He added that the company remained cautiously optimistic about the remainder of FY27, supported by favourable consumer trends and its diversified business model.
Source - PTI
Advertisement
Facebook
Whatsapp
