India may need more GST relief on domestic hotels and restaurants to make travel cheaper for consumers and help the tourism sector grow faster, according to SOTC Travel's managing director. The view reflects a broader industry argument that lower tax costs can improve affordability and encourage more bookings across the country.
The company also sees the government's decision to reduce tax collected at source on overseas travel packages as a positive step for the travel market. That move is expected to ease some cost pressure for international holiday buyers while signalling policy support for the sector.
At the same time, India's travel market is continuing to expand, with domestic tourism benefiting from better infrastructure and stronger connectivity. Easier transport links and ongoing improvements in travel facilities are helping more people consider leisure and holiday trips within the country.
Even with that momentum, affordability remains central to sustaining tourism growth. Industry leaders say further GST rationalization for domestic hospitality could support demand, widen access to travel, and strengthen India's tourism ecosystem as more consumers look for value-focused options.
