Tourism sector slams cuts to overseas promotion funds in Budget 2025, says key concerns left out

However, there is more than what meets the eye.

The outlay for the Ministry of Tourism has seen a modest increase to Rs 2,430 crore in Budget 2025-2026, up from Rs 2,374 crore a year ago. Of the Rs 2,374 crore allocated in the 2024-2025 Budget Estimate, only Rs 732 crore has been utilised.

While Integrated Development of Tourist Circuits around specific themes (Swadesh Darshan) has received an outlay of Rs 1,900 crore in 2025-2025 Budget, up from Rs 1,750 crore in the previous financial year, the outlay for overseas promotion and publicity has dropped to Rs 3 crore in FY26 from Rs 33 crore in FY25.

Overseas promotion

“From an industry perspective, there was a strong expectation for an enhanced international marketing budget to support India’s growing ambitions as a global tourism hub. In the current landscape, where global tourism is witnessing a robust rebound, India’s international visibility is crucial to attracting high-value travellers,” said Deep Kalra, Chairman, World Travel and Tourism Council India Initiative (WTTCII).

He said there is an urgent need for an empowered, strategically driven India Tourism Board to amplify India’s global footprint. “Such a body can spearhead effective branding, strategic partnerships, and targeted marketing to position India as a premier year-round destination on the world tourism map.”

It is shocking that the budget of Rs 33 crore has been reduced to Rs 3 crore, said Rajiv Mehra, President, Indian Association of Tour Operators (IATO). “In fact, the earlier allocated budget of Rs 33 crore was also minuscule and not enough for overseas promotions and publicity. It is really surprising that on one side the government is extolling the contribution of the tourism sector for its contribution to the economic growth of the country and employment generation and on the other hand, the government is just allocating a peanut budget of Rs 3 crore for promoting the country abroad.”

Due to the reduced budget for overseas promotion, the Ministry of Tourism would not be able to participate and set up India Pavilions in any of the International Travel and Tourism Marts, nor would the Ministry be able to do any overseas publicity and conduct any overseas roadshows, Mehra said.

Reduced participation

“This has been happening post-Covid every year where the Ministry of Tourism has to approach the Ministry of Finance to get approval/sanction for participation in any overseas travel mart/fair. This has led to reduced participation of tourism stakeholders in such marts leading to poor travel promotion and marketing.”

In comparison, countries like Singapore, Malaysia, Thailand, and Mauritius, among others, set up big tourism pavilions in international markets which give them ample opportunities to increase inbound tourism to their respective countries, he added.

“Our government needs to understand that without showcasing our country’s tourism products in global travel events, it is very difficult to attract tourists and reach the level of pre-Covid genuine numbers of foreign tourist arrivals even in the next 10 years,” Mehra said.

The sector has been emphasising the need to promote India globally to make it a tourism hub. In FY25, when the overseas promotion budget was slashed the sector had said that unless India doesn’t do roadshows, familiarisation trips and publicity campaigns abroad, the country won’t be able to draw foreign tourists. While every country in India’s neighbourhood is courting the country’s tourists, India’s effort towards drawing tourists from abroad is zilch, industry experts said.

Many hoteliers in their Budget 2025 wish list had said that under-supply of hotel rooms and high Goods and Services Tax (GST) in comparison to the neighbouring countries are driving business to countries like Thailand, Sri Lanka and Vietnam.

“If we truly want to position India as a premier global travel destination, we need a stronger push in international branding and outreach,” said Jyoti Mayal, chairperson of the Tourism and Hospitality Skill Council (THSC).

Some concerns

Mayal said that given the strides being made, it is a setback that critical concerns raised by travel service providers like restoring GST input credit, abolishing TCS (tax collected at source), and granting industry status to tourism for tax benefits, have not been addressed.

The outlay for Pilgrimage Rejuvenation and Spiritual, Heritage Augmentation Drive (PRASHAD) remained the same at Rs 240 crore in FY26. Of the outlay of Rs 240 crore in FY25, Rs 100 crore was utilised.