Union Budget 2026–27: Tourism Gets Intent, But Falls Short on Structural Reforms, Says Tourism Committee of FTCCI

Hyderabad: The tourism committee of Federation of Telangana Chambers of Commerce and Industry (FTCCI) said that although the Union Budget introduced several positive initiatives, it fell short of addressing the core structural issues faced by the tourism sector.

D. Ramchandram, co-chair of the committee, said the industry welcomed initiatives such as the seaplane push, establishment of hospitality institutions, upgradation of hotel management institutes, training of 10,000 tourist guides, creation of five regional hubs for medical tourism, promotion of heritage and archaeological sites, adventure tourism, Buddhist circuits, and relief through TCS for Indian travellers.

Ramchandram noted that key expectations such as industry status for tourism, GST rationalisation, a comprehensive National Tourism Policy, targeted MSME support, tourism-specific skill development, and focused support for Telangana tourism were not addressed in the Budget.

One of the longest pending demands was the granting of infrastructure status to tourism projects. Currently, hotels, resorts, convention centres, and theme parks are treated as real estate rather than infrastructure, which restricts access to long-term and affordable financing. This reform would have been particularly impactful for Tier-II and Tier-III cities and districts in Telangana, where tourism can act as a powerful driver of regional development and employment generation.

He pointed out that India still lacked a comprehensive and contemporary National Tourism Policy aligned with global best practices. Globally, over 150 out of 195 countries operate with clearly articulated national tourism policies or long-term tourism roadmaps.

He also expressed disappointment that, despite high expectations, the Budget did not provide specific support for Telangana’s medical tourism ecosystem and heritage tourism circuits. Telangana, with Hyderabad’s globally recognised healthcare infrastructure and rich heritage assets such as Warangal and the Qutb Shahi monuments, holds immense potential to attract international and domestic tourists.