India’s tourism and hospitality education sector is struggling with declining admissions, increasing dropout rates, and diminishing government support. Over the last five years, the Ministry of Tourism has halved the budget allocations for education, raising concerns about the future of institutions such as the National Council for Hotel Management & Catering Technology (NCHMCT), Indian Institute of Travel & Tourism Management (IITTM), and Food Craft Institutes (FCI).
Budget Reductions Over Five Years
- 2020-21: ₹75 crore
- 2024-25: ₹50 crore (Revised Estimates: ₹32 crore | Actual Expenditure till Feb 12, 2025: ₹13 crore)
- 2025-26: ₹35 crore (Lowest allocation ever)
The latest budget for FY 2025-26 has seen a drastic reduction to ₹35 crore, marking the steepest cut in recent years. The Ministry of Tourism has consistently reduced funding for education, despite earlier allocations remaining stable around ₹75 crore.
Parliamentary Committee Urges Higher Allocation
The Parliamentary Standing Committee on Transport, Tourism, and Culture has criticized these budget cuts, stressing that skilled human resources are critical to delivering quality tourism experiences. It has recommended a substantial increase in allocations to key institutions like IHMs, FCI, IITTM, and NCHMCT.
The committee’s key recommendations include:
- Developing an Integrated Tourism Skills Enhancement Program with a modernized curriculum, including digital skills, sustainable tourism management, and entrepreneurship.
- Establishing specialized training centers in collaboration with industry leaders to develop expertise in wellness tourism, adventure tourism management, and cultural interpretation.
Capacity Building Funds Also Reduced
The budget for capacity building in the tourism sector has also shrunk by more than 50%, dropping from ₹60 crore (FY 2020-21) to ₹25 crore (FY 2025-26).
Structural Issues in Fund Utilization
The Demands for Grants Report for 2025-26 has pointed out structural inefficiencies in project execution and monitoring within the Ministry of Tourism. This has led to chronic underutilization of funds, raising concerns about the government’s commitment to tourism education.
What Lies Ahead?
With decreasing government support and mounting financial challenges, India’s tourism and hospitality education sector faces an uncertain future. The parliamentary committee’s recommendations highlight the urgent need for reforms, but whether these will translate into policy changes remains to be seen.
Should the government reconsider its approach to tourism education funding? Share your views in the comments.
