Budget 2027 abolishes the Tourism Development Levy, giving the sector lower operating taxes immediately.
For new investment, the Budget offers a 200% tax allowance for Board of Investment (BOI) projects worth USD 3 million or more. This is a strong incentive for new hotel builds.
Smaller operators are also covered. Rs. 7.5 billion is set aside for homestay loans, including 3% loans of up to Rs. 2 million for families running tourist homestays.
