New Delhi, Feb. 1 -- The Union Budget 2026-27 put the spotlight on the tourism and hospitality sector. The finance minister proposed measures to strengthen the tourism ecosystem, with focus on medical tourism, skilling and institutional capacity-building.

In reaction, the stocks of listed hotel companies such as EIH Ltd, ITC Hotels Ltd and Lemon Tree Hotels Ltd rose 2-4% on 1 February. It is expected that these measures will gradually boost the prospects of the Indian tourism sector, buoying key earnings parameters such as average room rates (ARR) and occupancy levels.

Recall, the government has already rationalized the goods and services tax on hotel rooms for select tariff rates in September to make tourism more affordable.

"The anno...