Union Budget 2026 Sparks Fresh Optimism across India’s Travel and Hospitality Industry

Infrastructure push, tourism skilling, and destination-led growth set the tone for sustained demand in the Union Budget 2026.

India’s travel and hospitality sector is entering 2026 with renewed confidence, as the Union Budget signals steady support for tourism-led economic growth. Industry leaders believe the budget’s strong emphasis on infrastructure, connectivity, and workforce development will directly boost travel demand across the country, especially in emerging destinations.

According to Pushpendra Bansal, Chief Operating Officer at Lords Hotels & Resorts, continued investment in roads, railways, airports, and last-mile connectivity is expected to improve access to Tier II and Tier III cities. Better connectivity, he noted, will make leisure, pilgrimage, and regional travel more accessible and attractive to a wider audience. “When accessibility improves, destinations naturally see higher footfall and longer stays,” he said.

Beyond infrastructure, the budget’s focus on economic stability, employment generation, and MSME support is creating a healthier operating environment for hospitality businesses. Initiatives such as tourism skilling programs, the training of 10,000 tourist guides, and the proposed National Institute of Hospitality are expected to strengthen service quality by building a skilled, job-ready workforce. As employment and income levels rise, travel is increasingly seen as a necessity rather than a luxury.

The budget also highlights destination development, sustainable tourism, and heritage circuits, which are likely to enhance the overall traveller experience. These measures are expected to drive steady demand across leisure, business, religious tourism, weddings, and medical travel.

However, industry voices continue to seek relief on operational costs, particularly around GST and input tax credits. Despite this, the overall sentiment remains positive. With ongoing government and private sector collaboration, Budget 2026 is widely seen as a step forward in positioning travel and hospitality as a key driver of India’s long-term economic growth.