Survey Calls For Tax Cuts, Space For Hotels In Infra Boost To Tourism

Moderator
By Moderator July 5, 2019 13:30

The Economic Survey 2018-19 has recommended a series of measures to boost to the tourism sector, which saw a “sharp slowdown” last year.

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  • Pointing out that the sector experienced a sharp slowdown in 2018, the Survey stated that the foreign tourist arrivals (FTAs) in 2018-19 stood at 10.6 million compared with 10.4 million in 2017-18.
    • In terms of growth, the growth rate of FTAs declined from 14.2% in 2017-18 to 2.1% in 2018-19
  • Foreign exchange earnings (FEEs) from tourism stood at $27.7 billion in 2018-19 as compared to $28.7 billion in 2017-18.
    • In terms of growth, the FEEs declined from 20.6% in 2017-18 to -3.3% in 2018-19.
  • The Survey also showed that FDI in hotel and tourism also declined from $1,132 million in 2017-18 to $1,076 million in 2018-19.

Key Recommendations

  • The recommendations include increased budgetary allocation for development of infrastructure, making land available for hotels, and reduction in taxes.
  • The Survey added that there was a need to strengthen the coordination mechanism of various Ministries and stakeholders to resolve issues in the promotion of tourism in the country.
  • Additionally, the State governments need to be sensitized about tourism being a major driver of employment and poverty alleviation, it said.

Also read: Economic Survey On Minimum Wage System

Goods And Service Tax: 2 Years Journey

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Moderator
By Moderator July 5, 2019 13:30