IATO is upset over neglect of tourism sector in budget 2013. Tour Operators have little to rejoice about budget outcome said Subhash Goyal, President, Indian Association of Tour Operators and Chairman, STIC Travel Group.

We expected that the Budget will bring some relief to our mounting woes by reducing the Service Tax as this is the only one special request we have been making since last few years. But successive governments had only ensured that tourism sector is not given any relief.

It is unfortunate that the government is systematically killing the goose that lays the golden egg. How long you can tax the same sector. This taxation part has made India very cost prohibitive. Tourism Sector is estimated to contribute more than 6% to the GDP and more than 9% to the employment. “Present service tax level exacerbated by high fuel price and Swine Flu threat will further push down the demand for India holidays.

In the present budget the inclusion all AC restaurants and cafes more than 2000 square feet to pay service tax is also adding to the continued woes. In extreme weather condition in India during summer and winter it is a basic requirement to have a meal in a restaurant which have space to breathe.

Similarly increase in import duty on high end motor vehicles from 75% to 100% is also going to impact negatively the tourism industry as for easy movements for tourists we require comfortable cars, especially when in India there is constant effort to improve the highways and which can boost surface tourism in a big way, said Mr. Subhash Goyal, President, IATO and Chairman, STIC Travel Group.

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