Wish list grows longer as the time ticks for Budget 2026-27

Hyderabad: The hospitality sector is calling for a significant overhaul in the upcoming Union Budget, seeking a further reduction in GST on room rates and easier access to credit to stimulate fresh investment. Members of the Hotels and Restaurants Association of Telangana State (HRATS) highlighted that tourism and hospitality remain the country’s largest job creators, employing approximately 48 million people in 2024-25.

With projections suggesting this figure could hit nearly 63 million by 2034 through both direct roles in hotels and indirect positions in logistics and IT, the association stressed that granting the sector full industry and infrastructure status is now essential. Such a move would significantly lower financing costs and encourage expansion beyond major metropolitan areas.

Beyond tax rationalisation, the industry is pushing for the inclusion of Input Tax Credits and more realistic depreciation rates to support this capital-heavy business. Hoteliers are also seeking tax breaks and faster approval processes to ensure that new projects remain viable. To drive sustainable demand, HRATS suggested budget support for green investments, hospitality training institutes, and apprenticeships to improve service quality.

They further noted that improving city cleanliness, safety, and connectivity through the development of tourist circuits would make India more competitive globally.

If the Union Budget 2026 delivers on these expectations, the sector anticipates more affordable stays, a surge in domestic and international travel demand, and a strengthened national economy.