EaseMyTrip’s shares touched the intraday high of INR 43.6 each, up 8.86% from the previous close on BSE
Yatra’s shares traded as high as INR 127.35 during the day’s trading session, up 4.9% from the previous close
Sitharaman announced that the government has allocated INR 2,479.62 Cr for the tourism sector for FY25, up 46% from the revised allocation of INR 1,692.10 in FY24
Shares of traveltech majors Easemytrip
and Yatra soared during intraday session today (July 23) after finance minister Nirmala Sitharaman announced a slew of initiatives during her Union Budget 2024-25 (FY25) speech to fuel growth of India’s tourism industry.
While EaseMyTrip’s shares touched the intraday high of INR 43.6 each, up 8.86% from the previous close on BSE, Yatra’s shares traded as high as INR 127.35 during the day’s trading session, up 4.9% from the previous close.
Notably, shares of both EaseMyTrip and Yatra closed the trading session at INR 42.25 and INR 125.85, respectively, on Tuesday.
Sitharaman announced that the government has allocated INR 2,479.62 Cr for the tourism sector for FY25, up 46% from the revised allocation of INR 1,692.10 in FY24.
It is pertinent to mention that the estimate for the tourism industry in the interim budget was pegged at INR 2,449.62 for FY25.
“Tourism has always been part of our civilization. Our efforts in positioning India as a global tourist destination will also create jobs, stimulate investments and unlock economic opportunities for other sectors,” Sitharaman said.
The finance minister also made some key announcements to boost the spiritual tourism sector.
“In FY25, the government announced the development of Vishnupad Temple at Gaya and Mahabodhi Temple at Bodh Gaya in Bihar. “Comprehensive development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor will be supported, modelled on the successful Kashi Vishwanath Temple Corridor, to transform them into world class pilgrim and tourist destinations,” Sitharaman said.
The government has also proposed a comprehensive development initiative for Rajgir. “Rajgir holds immense religious significance for Hindus, Buddhists and Jains. The 20th Tirthankara Munisuvrata temple in the Jain Temple complex is ancient. The Saptharishi or the 7 hotsprings form a warm water Brahmakund that is sacred. A comprehensive development initiative for Rajgir will be undertaken,” she added.
Besides this, the FM also announced a simpler tax regime for foreign shipping companies operating domestic cruises in India to boost cruise tourism in the country.
Meanwhile, EaseMyTrip’s cofounder Rikant Pittie, said, “The government’s attempt to position India as the global tourist destination is evident in the Union Budget 2024-25. We are optimistic that this will enhance the overall experience of the tourists visiting these religious sites and will uplift state tourism.”
At the heart of this announcement lies the growing emphasis of the government on spiritual tourism with the inauguration of Ram Temple in Ayodhya in January earlier this year. Even the hospitality and tourism sector welcomed this move by the government.
According to a report by IBEF, India’s travel market is expected to reach $125 Bn by FY27 against $75 Bn in FY20. Additionally, projections indicate that international tourist arrivals are poised to reach 30.5 Bn by 2028.
