Budget 2025: ITDC, Lemon Tree, other stocks spike up to 8% as FM announces plans to develop top 50 tourism sites
Shares of ITDC, ITC Hotels, and Lemon Tree rose by up to 8% on February 1, following the Finance Minister's announcement of measures to enhance the tourism sector in the Budget speech.
Shares of Indian Tourism Development Corporation (ITDC), ITC Hotels, Lemon Tree and stocks related to hotel, tourism and aviation sectors gained up to 8% in the trading session on Saturday, February 1, as Finance Minister Nirmala Sitharaman unveiled measures to boost the tourism sector as part of the Budget speech.
FM Sitharaman as part of her Budget speech said the government would focus on investment in tourism. As part of its announcements, the Finance Minister said that the top 50 tourist destination sites in the country will be developed in partnership with states through a challenge mode and also extend MUDRA loans for homestays.
Additionally, special focus will be made on destinations related to the life and times of Lord Buddha. Further in a bid to boost tourism in the country, Sitharam said medical tourism will be promoted in partnership with the private sector.
The government said intensive skill-development programs for our youth will be organised, including in Institutes of Hospitality Management. Additionally, performance-linked incentives to states for effective destination management, including tourist amenities, cleanliness, and marketing efforts will be provided.
A modified UDAN scheme will be launched, said the Finance Minister, to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years.
"India is revamping its tourism sector through a multi-faceted approach, aiming to boost its contribution to GDP from 5% now to 9-12%, which will be comparable to peer countries. The initiatives include enhancing last-mile connectivity, expanding the UDAN scheme, upgrading tourist destinations, simplifying visa regulations and improving the overall hygiene quotient," Crisil said.
Stock Impact
Lemon Tree share price rallied over 4% while ITDC stock surged 8% and Indian Hotel Company gained over 2%.
Other players from the hospitality and tourism sector also gained, with IndiGo climbing 2% and SpiceJet rallying 5%. Meanwhile, Easy Trip Planners surged 10% and Ixigo was up 2%
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