The Union Budget for the year 2010-11 has given a miss to the industry demands like export status for the industry, exemption of Service Tax on Inbound Tour operators; inclusion of ATF in 'Declared Goods' list for uniform taxation; abolition of Fuel Surcharge to make air travel affordable within the country, rationalization of state transport taxes and the recommendation for the formation of a National Commission for Tourism under the leadership of the Prime Minister. In fact, Air Travel may become costlier as Finance Ministry has proposed inclusion of domestic & International journeys in all class under the scope of service tax.

The only positive side was the announcement of investment linked deductions under the Income Tax Act to companies developing hotels (two star and above). The tourism outlay has been increased from last year's Rs 950 crores to Rs 1050 crores for 2010-11. Overall the tourism industry has always been a neglected sector & will continue to remain a non priority area unless the entire industry & all its associations come together & lobby hard for its right due.