Lemon Tree Hotels climbed 4.3% to Rs 141.95 on the BSE, while Indian Tourism Development Corporation (ITDC) surged 9.8% to Rs 682. Indian Hotels gained 5.3% to Rs 805, and Royal Orchid Hotels advanced 4% to Rs 350.3. ITC Hotels shares climbed 5% to Rs 172.85 on the BSE.
Airlines and travel service providers also benefited from the announcement. IndiGo rose 4.2% to Rs 4,505, SpiceJet jumped 7.2% to Rs 52.4, and Easy Trip Planners soared 10.5% to Rs 14.9.
Sitharaman detailed the government’s plans to invest in India’s tourism ecosystem, including the development of the country’s top 50 tourism sites in collaboration with states through a challenge-based model.
The initiative will also extend MUDRA loans for homestays, encourage medical tourism through public-private partnerships, and give special attention to Buddhist tourism circuits.
“Top 50 tourist destination sites in the country will be developed in partnership with states through a challenge mode. Land for building key infrastructure will have to be provided by states. Hotels in those destinations will be included in the infrastructure HML,” the finance minister said in the Budget speech.Also read | NIIT, other education stocks rally up to 5% as FM announces medical education expansion in Budget 2025Additionally, the finance minister announced performance-linked incentives for states to enhance destination management, cleanliness, and marketing. Skill-development programs, including those at Institutes of Hospitality Management, will be launched to equip the workforce for industry demands.
To improve connectivity, the government will roll out a modified UDAN scheme, targeting regional links to 120 new destinations with the goal of serving 4 crore passengers over the next decade.
The sector-wide rally underscores investor optimism that these measures could accelerate tourism growth, drive job creation, and strengthen India’s position as a global travel destination.
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