Tourism and hospitality industry sidelined in Union Budget 2009-10

The Union Budget 2009-2010 was perhaps the most awaited budget post formation of the new government, to see what was in store in the wake of the ongoing downturn and recession. While the government targets to sustain a growth rate of nine per cent per annum and create job opportunities for 12 billion Indians, the budget presented certainly favoured the ‘Aam Aadmi’ (common man). Interestingly, the budget brought about a few positives like abolition of Fringe Benefit Tax (FBT) and Commodity Transaction Tax (CTT) which are applicable to all sectors, however nothing specific or major was announced for any specific industry by our Finance Minister Pranab Mukherjee.

Talking in particular about the aviation, travel and tourism as well as hospitality industry, the clear benefit will be received from the abolition of FBT and also development of rail, road, airports and ports through India Infrastructure Finance Company Limited (IIFCL) and increased budget allocation for the Commonwealth Games 2010.  The general consensus across the industry has been that the aviation, travel and