Maharaj I S Wahi, president, IATO
The enhanced allocation of Rs 100 crore for tourism, re-introduction of LTC and abolition of expenditure tax are positive steps. What we got has been long pending. This will spell more business for budget hotels and domestic tour operators. But we were expecting infrastructure status for tourism industry because the finance minister had assured us that tourism industry was wrongly being treated as an elitist activity. But we got no major sops. Instead service tax has been increased from 5 per cent to 8 per cent.

Yatin Dossa, president, TAFI
It is heartening to see that tourism has got a decent mention in this year’s Budget, because in previous years the word tourism was conspicuous by its absence in the Budget speeches. I am glad therefore that the government is according tourism due priorities. Admittedly this year’s finance bill will not directly benefit the travel agent community per se, but there are definite indirect tangible benefits.

Yogesh Chandra, general secretary, WTTC
It is an excellent Budget as for the first time tourism has been defined as an important sector generating revenue and employment. The tax benefits given to the hotel industry are a welcome step. The rationalisation of taxes has been an important part of WTTC's agenda and the recommendations have been honoured so we are grateful to the finance minister. We had identified taxation as one of the strong deterrents to the growth of the hospitality industry. The reintroduction of LTC will stimulate domestic tourism. Domestic tourism can actually make up for the shortfall of foreign travel during the last three years. Besides two airports and convention centres are good steps by the finance ministry

Bhagwan Kanuga, honourary secretary general, TAAI
Budget 2003-04 is not progressive, especially for the travel agent community as they have not been given any concessions whatsoever. On the other hand, taxes in the form of service tax and Tax Deducted at Source (TDS) has been increased, which has created havoc in the market and are taxing agents. Where infrastructural boost is concerned, it doesn't matter much to international travellers. Prices need to be brought down. Even the capital market is not improving and can be best described as a passive Budget. With all the hype of an incremental Budget, how long implementation will take is left to be seen since all of this requires effort and money.

Lalit Suri, president, HAI and Rajya Sabha member
It is a very good Budget specially for the tourism sector. I congratulated the FM after the Budget. HET is abolished, therefore, hotel taxes will come down making rates more competitive. As for the luxury tax, HAI will continue to lobby with states. Further, hotels will now be able to set off losses in cases of mergers and demergers and get loans from IDFC which will definitely boost investment in the hotel sector. This is what I have been lobbying for in Parliament. Travel will definitely increase when infrastructure improves. After all, infrastructure is the basic requirement. Modern airports will mean greater facility and improved roads greater connectivity. Building of modern convention centres will enable us to tap the MICE segment. This Budget is a tourism-friendly Budget. The VAT structure will help tourism in a big way as the new tax structure will reduce taxes on food and beverage. The local sales tax on Air Turbine Fuel will also come down to around 15 per cent reducing airfare in the domestic network.

Shyam Suri, secretary general, FHRAI
The hospitality industry is grateful to the finance minister and minister for tourism. So far, incentive under 72A was available only to the manufacturing industries. We are thankful for now extending it to the hotel sector also. Hotels will now be able to carry forward losses or appreciation in case of mergers and demergers. Benefit under10 (23G) will certainly give a boost to the much-needed expansion of hotel rooms. This tax rationalisation will definitely go a long way in boosting growth for the tourism sector. The government's effort to redress the lack of convention centres of international standards in the country, is a welcome step. Modernisation of airports and building of four-lane roads will go a long way in increasing tourism.

Ashwini Kakkar, CEO & MD, Thomas Cook (India) Ltd
In 1955 when the First Planning Commission drafted the priority list of industries, the development of light-houses was ranked 268th. Tourism was placed just one rank above. After four long decades the fate of the tourism industry has improved - but marginally.. The tourism industry, I am sure, will be appreciative of the recognition and the benefits of an infrastructure status. The extension of benefits under Section 10 (23G) to companies engaged in the business of creating. tourism infrastructure (mainly the hotel segment) is welcomed. The 10 per cent expenditure tax will help our hotels to be more viable on their tariffs as compared with hotels rates in the international market. And we do hope that the states will follow suit for Luxury Tax. The LTA concession should help widen the flow of tourism traffic as most urbanites do feel the need to take a break (good comfortable holiday) from the high pressured city life in today’s modern world. There are promises of the much awaited renovation and modernisation of key gateway airports and seaports to international standards as well as developments of roads and railways to promote domestic tourism sector and facilitate inbound traffic. These are incentives but in small measures. For a industry that has waited so long in the side wings and has been universally accepted as a large employment generator and major contributor to any country’s exchequer, it needs larger doses of tax sops. Our recommendations about withdrawal/reduction in IATT currently levied at 15 per cent on basic domestic fare seem to have been not accepted. This tax along with the postal surcharge (which has been long withdrawn) was levied during war period and is not justified now. It pushes up the price of travel for domestic travellers and encourages Indians to travel overseas at the cost of domestic tourism business and the outflow of foreign exchange. The Air Turbine Fuel also needed to be rationalised across all states in India. The tax holiday (section 80-LA) of ten years is available for infrastructure projects ..telecom, roads, ports, etc. The same should be extended to the tourism industry, especially their airline operators. The tourism industry is one of the largest foreign exchange earners for the country. Income from tourism in foreign exchange should be ‘deemed as exports to the extent of net foreign exchange’ earned.

PRS Oberoi, chairman, Oberoi Group
For the first time any finance minister has recognised the true potential of the tourism industry, which can create more employment than the manufacturing industry. Hotels have sops that would go a long way in promoting business. I am particularly happy that tax on dividend in the hand of shareholders has been withdrawn. However, privatisation of airports will work only if the government makes bilaterals more flexible allowing interested airlines to increase frequency and capacity. I would have liked the minister to keep wine as a separate category and give more duty reduction, rather than clubbing it with liquor. Reduction on import duty on wine would have encouraged people to drink wine, which doesn't affect health as hard liquor does.