India Slashes Global Marketing Budget: 'The Joke's on Us'

09.02.2024 - 13:01 / skift.com / Peden Doma Bhutia / Himmat Anand

India’s recently-unveiled Union Budget for the fiscal year 2024-2025 gave a big increase to the tourism ministry, but the amount for the global promotion took a major hit: A 97% reduction to just INR 30 million ($361,000).

While the budget introduces measures to bolster infrastructure and amenities at tourist centers, the severe cut in promotional spending has industry stakeholders questioning the government’s commitment to inbound tourism.

The industry had also hoped for a solution to the recently-introduced travel tax issue in the budget, but there was no clarity on that.

As Himanshu Dwivedi, director of Monkfoot Travels put it: “INR 30 million for overseas tourism promotion is a joke and make no mistake, the joke’s on us.”

“Other tourism destinations have substantially increased their overseas marketing and promotion activities to revitalize their tourism sectors,” Dwivedi added.

The Indian government’s steps, such as closing several India Tourism offices worldwide, discontinuing the Service Exports from India Scheme (SEIS) incentives, and a lackluster approach to international travel fairs and roadshows, have added to the industry’s woes. The minimal focus on digital promotions further compounds the challenges faced by the tourism sector in attracting international visitors.

Dwivedi also expressed disappointment with the industry’s reluctance to openly criticize the budget. He said the industry needs to voice concerns without diplomatic restraint.

Himmat Anand, founder at A Dog’s Story, is not surprised, “Tourism has never been a priority for any government. While the contribution of this segment is applauded, lip service is all we get when it comes to seeking support,” he said.

Rajeev Kohli, joint managing director of Creative Travel, echoed Anand’s sentiment: “What overseas promotion? You can’t cut zero, can you?” Kohli said.

With the marketing budget slashed to INR 30 million, Dipak Deva, managing director of Travel Corporation of India, the country’s largest inbound travel company, said he’s not sure how India can promote itself effectively on the global stage.

Anand pointed out the dependence on Prime Minister Modi’s statements for tourism priorities, highlighting recent instances where government focus shifted based on the Prime Minister’s remarks.

“The Prime Minister said weddings should be held in India and not overseas, immediately the Ministry of Tourism came out with a campaign on promoting weddings in the country. He went to Lakshadweep for a day and suddenly this became the in-destination and this budget ended up with an extra allocation for developing the islands. How can a country ever develop its tourism in this manner?” he said.

There’s a unanimous consensus that domestic tourism