IATO expresses concern over drastic budget cut for overseas tourism promotion, ET TravelWorld

The Indian Association of Tour Operators (IATO) has voiced strong disappointment over the Union Budget’s allocation of just INR 3 crore for overseas tourism promotion and marketing. IATO President Rajiv Mehra has criticized this drastic reduction from the previous INR 33 crore, which was already considered insufficient to effectively promote India as a global travel destination.

Mehra highlighted the stark contrast between the government’s emphasis on tourism’s role in economic growth and employment generation and its limited financial commitment to global marketing efforts. He pointed out that this significant cut would hinder the Ministry of Tourism from participating in major international travel marts, setting up India Pavilions, conducting roadshows, and undertaking other crucial promotional activities abroad.

“This continuous reduction in funds post-Covid has resulted in the Ministry of Tourism repeatedly seeking approvals from the Finance Ministry for participation in overseas events,” Mehra stated. “This has led to diminished international representation for India, unlike competing nations such as Singapore, Malaysia, Thailand, and Mauritius, which invest substantially in their tourism promotions and secure greater visibility in global travel markets.”

Without showcasing India’s tourism offerings on an international platform, Mehra warned that it would be nearly impossible to restore foreign tourist arrivals to pre-Covid levels even within the next decade.

Urging the government to take immediate action, Mehra appealed to the Prime Minister and Finance Minister to substantially increase funding for overseas marketing and promotion. He also called for the reinstatement of the Marketing Development Assistance (MDA) scheme, which provided financial aid to tour operators but was discontinued due to a lack of funds.

“The tourism industry needs substantial financial backing to compete globally and drive inbound tourism growth. We earnestly request the government to reconsider its allocation and provide the necessary support to showcase India as a top travel destination worldwide,” he added.