Union Budget Expectations 2026: A Hospitality Leader’s Vision for India’s Tourism Growth
As India continues its journey toward becoming a global economic powerhouse, the travel and tourism sector stands at a defining crossroads. With international arrivals steadily rising and domestic travel touching new highs, the upcoming Union Budget carries the potential to shape the future of Indian hospitality for decades to come.
Mr. Salim Shaikh, Co-Founder of Monday Hotels, shares a forward-looking perspective on what the hospitality industry truly needs from the Union Budget—one that balances growth, sustainability, and global competitiveness.
Strengthening India as a Global Travel Destination
India’s diversity has always been its strongest tourism asset—from heritage cities and spiritual circuits to beaches, hills, and emerging leisure destinations. However, to fully unlock this potential, focused government investment is crucial.
According to Mr. Shaikh, the hospitality sector is looking for enhanced funding in tourism infrastructure, improved last-mile connectivity, and planned urban hospitality development. These measures will not only improve traveler convenience but also encourage responsible expansion of hotel groups across both established and emerging destinations.
Equally important is ease of doing business. Simplified licensing norms, single-window clearances, and access to affordable financing can significantly reduce project delays and costs, enabling hotel brands like Monday Hotels to scale sustainably.
Key Budget Priorities for the Hospitality Industry
The expectations from this year’s Union Budget go beyond short-term relief. They reflect a long-term vision for a resilient, future-ready hospitality ecosystem.
🌱 Sustainability Incentives
Hotels are increasingly investing in green operations, but policy support can accelerate this transition. Incentives for solar open access, renewable energy adoption, and energy-efficient infrastructure—especially for mid-scale and large hotels—will help reduce operational costs while aligning with India’s climate commitments.
🎓 Hospitality Education & Skill Development
One of the biggest challenges facing the industry today is the shortage of skilled manpower. Government-backed initiatives focused on hospitality education, vocational training, and upskilling programs can elevate service standards while creating meaningful employment opportunities for India’s youth.
💼 Attracting Long-Term Investors
The sector requires patient, long-term capital rather than short-term speculative investments. Policy frameworks that encourage institutional and long-horizon investors can ensure stable growth, better governance, and sustainable asset development across the hospitality value chain.
💰 Tax Rationalisation & GST Clarity
Clear and rational tax structures are essential for healthy cash flow. Streamlining GST norms and reducing ambiguity will improve compliance, retain tourism revenue within the country, and make Indian hospitality more competitive globally.
🗺️ Promoting Emerging Destinations
To avoid over-tourism in traditional hubs, there is a strong need to promote hidden and emerging leisure destinations. Strategic marketing and infrastructure development in these regions can diversify travel demand, boost local economies, and create new hospitality hotspots.
🤖 Digital Transformation & Innovation
Technology is reshaping guest expectations. Incentives for digital adoption, automation, and innovation can help hotels enhance operational efficiency, personalize guest experiences, and stay competitive in a tech-driven global market.
The Bigger Picture: Sustainable Growth with Global Impact
Implementing these measures will do more than support hotels—it will generate employment, empower local communities, and elevate India’s global tourism brand. As Mr. Salim Shaikh emphasizes, a well-balanced Union Budget can help the hospitality industry deliver memorable guest experiences while positioning India as a world-class, sustainable travel destination.
With the right policy push, India’s tourism story can move beyond potential to performance—driving inclusive growth and reinforcing the nation’s standing on the global travel map.