Top tourism stocks jump nearly 6% as Union Budget offers series of steps to boost tourism

Tourism stocks were closed higher after Finance Minister Nirmala Sitharaman announced a series of steps in the Union Budget for 2024 to boost the tourism sector. Following the budget speech, shares of companies like Asian Hotels, Easy Trip, and Thomas Cook saw considerable gains.

Tourism and Hospitality stocks jump

What led to a jump in tourism stocks?

In the Union Budget for 2024, Finance Minister Nirmala Sitharaman underlined that tourism has always been part of Indian civilization and that the tourism industry plays an integral role in the country’s economy, generating employment, revenue, and economic opportunities.

In addition to the measures announced in the interim budget, the Union Budget stated that the Vishnupad Temple Corridor and Mahabodhi Temple Corridor will receive support for comprehensive development. The development of these two corridors will be modelled on the Kashi Vishwanath Temple Corridor.

Further, Rajgir, a significant religious destination for Jains, Hindus, and Buddhists will receive support for development. The government will also develop Nalanda as a tourist destination and will revive Nalanda University. Moreover, the government will also provide support to Odisha in order to boost tourism in the state.

The Union Budget allocated ₹2,479 crore to the tourism sector for the coming fiscal compared to the previous year’s allocation of ₹2,400 crore.

The budget has provided more support to boost tourism with an increased focus on temple and religious tourism. The government plans to develop religious destinations into world-class tourist destinations to boost the local economy and position the country as a global tourist destination.