Shares of hotel and tourism companies like Indian Hotels and ITC Hotels jumped by up to 10% during a special Budget session on Saturday. Finance Minister Nirmala Sitharaman announced new plans to help the tourism sector in her Union Budget 2025 speech.
Lemon Tree Hotels increased by 4.3% to Rs 141.95, while Indian Tourism Development Corporation (ITDC) soared by 9.8% to Rs 682. Indian Hotels went up by 5.3% to Rs 805, and Royal Orchid Hotels rose by 4% to Rs 350.3. ITC Hotels shares also climbed by 5% to Rs 172.85.
Airlines and travel services were boosted too. IndiGo rose by 4.2% to Rs 4,505, SpiceJet jumped by 7.2% to Rs 52.4, and Easy Trip Planners soared by 10.5% to Rs 14.9.
Sitharaman explained that the government will invest in the tourism industry by developing the top 50 tourist sites in India with help from the states. They will also provide loans for homestays, promote medical tourism with private partnerships, and focus on Buddhist tourism routes.
States will need to provide land for new infrastructure in these key areas, and hotels in these destinations will be included in the government’s new plans. The Finance Minister also mentioned special rewards for states that improve tourist management, cleanliness, and marketing.
Skill development programs will help prepare workers for the tourism industry, including training at Hospitality Management schools. To improve travel options, the government will introduce an updated UDAN scheme, adding regional flights to 120 new places to serve 4 crore passengers in the next ten years.
This excitement in the market shows that investors are hopeful these measures will boost tourism, create jobs, and make India a more attractive travel hotspot
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