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Hotel Stocks Disappointed by Budget

Published 02-02-2021, 08:45 am
Updated 02-02-2021, 08:48 am
© Reuters.
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By Aditya Raghunath

Investing.com -- On a day when the stock markets broke multiple records and added over Rs 6 lakh crore, hotel stocks on the index had a muted day. Hotel stocks rose between 1%-2% and some of them even ended in the red.

The general consensus is that there was little in the Budget offing for them. Nakul Anand, Chairman FAITH said, “Lack of immediate direct support in budget has disappointed the Indian travel and tourism industry.”

FAITH is the federation of all the national associations representing the tourism, travel, and hospitality industry of India (ADTOI, ATOAI, FHRAI, HAI, IATO, ICPB, IHHA, ITTA, TAAI, TAFI).

Anand put out a statement that said, “There was a need of Corpus of least Rs 2500 crores for global branding budget to enable Sub Branding of three Tourism segments Indian MICE, Indian adventure, Indian Heritage under the Incredible India main brand to enhance each of these verticals’ global outreach post-COVID to ensure that tourism industry would have become a mainstay domestic industry there was required an income tax exemption on travelling within India income tax credits for up to Rs 1.5 lakhs when spending with GST registered domestic tour operators, travel agents, hoteliers and transporters anywhere within the country.”    

Hotel stocks ended flat today. Indian Hotels Co. Ltd (NS:IHTL) ended up 1.15%, EIH Ltd (NS:EIHO) was up 2.15%, Oriental Hotels Ltd (NS:ORHT) was up 1.72%, Benares Hotels Ltd (BO:BNRS) was up 0.82% and Mahindra Holidays and Resorts India Ltd (NS:MAHH) was up 1.05%.

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