Rail connectivity may drive tourism to hill states, but budget lacks incentives: Stakeholders

Shimla (Himachal Pradesh) [India], February 2 (ANI): Tourism stakeholders in Himachal Pradesh have welcomed the Union Budget's emphasis on improving rail connectivity to hill states, saying it could significantly boost tourist inflow, but expressed disappointment over the absence of specific incentives for investment in the tourism industry.
Speaking to ANI in Shimla on Sunday, Mahendra Seth, President of the Himachal Pradesh Tourism Stakeholders Union and Shimla Hotel Association, said the budget has highlighted plans to expand railway connectivity in hill states like Himachal Pradesh and Uttarakhand, which could prove to be a major boost for tourism.
"One important aspect of the Union Budget is the focus on increasing rail connectivity, especially for hill states like Himachal Pradesh and Uttarakhand. I believe this is a very positive and forward-looking idea," Seth said.
He pointed out that Himachal Pradesh currently has only three small airports, which can handle limited aircraft operations, restricting air connectivity to the state.
"Himachal has three small airports where only small aircraft can land. Large aircraft like Boeing planes cannot operate there. Despite efforts over many years, these airports have not been expanded," he said.
Seth said that improved broad-gauge railway connectivity could address this limitation and significantly increase tourist arrivals.
"If broad-gauge trains are extended up to Shimla or nearby areas, or if connectivity is improved from Pathankot to Kangra, tourist inflow will rise sharply. Tourists from Mumbai, Maharashtra and South India could then travel directly to Himachal, instead of halting at Chandigarh," he added.
Referring to the proposal for mountain and adventure trains, Seth said such initiatives could further enhance tourist movement to the state.
"If high-speed or improved train services reach Himachal, the impact on tourist inflow will be very significant," he said.
However, the tourism stakeholders expressed concern that the budget did not offer concrete fiscal support to the hospitality sector.
"The GST rate for hotels was already reduced to five per cent earlier. We were expecting investment incentives or policy support to encourage further investment in the tourism sector, but nothing new was announced," Seth said.
He said incentives would have strengthened the tourism ecosystem and encouraged expansion, especially at a time when infrastructure constraints remain a challenge.
Seth also said that while heritage railways should be preserved, early expansion of broad-gauge rail links would have been more beneficial than over-reliance on road widening projects.
"We are not saying heritage trains should be scrapped, but if broad-gauge rail connectivity had been developed earlier instead of focusing only on four-lane roads, it would have benefited tourism more," he added.
Tourism stakeholders said they hope the Centre will follow up on its railway announcements with concrete implementation and consider targeted incentives to support tourism investment in hill states. (ANI)