‘Falling rupee positive for growth of inbound tourism’
The sharp depreciation of the rupee against major currencies can help inbound tourism to cultivate while outbound travel will undoubtedly be hit.
“A weakened rupee has made India a cheaper foreign destination,” said Subhash Goyal, Chairman, Assocham Tourism Committee. “We expect inbound tourism to benefit by 10%.”
However, the rupee’s decline will be harmful to outbound travel, he said. “This season we expect this segment could have negative growth. The impact will later be felt,” Mr. Goyal added.
While Indian travellers had taken note of the falling rupee, that they had not changed their international travel plans, said Karan Anand, Head, Relationships, Cox & Kings Ltd.
“Within the last eight months, the rupee has fallen over 8% vis a vis the dollar. However, it has had little effect on people taking trips to dollar destinations. If the rupee may weaken contrary to the dollar further, travellers might trade down — like decrease the duration of travel, stay static in four-star accommodation and scale back on shopping to lessen expenses while on the trip,” Mr. Anand said.
“However, it is extremely rare that travellers cancel or reassess their selection of overseas destination that is planned for months.”
Due to the entire strength of the rupee contrary to the euro Indians may likely would rather visit Europe.
“Within the last 90 days the rupee has strengthened contrary to the euro by 1.64%; to the Pound by 1.81% . This means that that countries in Europe shall not think it is hard to attract the ever-growing amount of Indian tourists,” Mr. Anand said.
He said some travellers were more likely to want to benefit from positive exchange rates and would plan happen to be countries whose currencies had weakened contrary to the rupee like South Africa, Mexico and turkey. “You can look at alternative trips to destinations such as for example South Africa, where in fact the rupee has appreciated contrary to the Rand or Turkey where in fact the rupee has appreciated contrary to the Turkish Lira or the Mexican Peso that is falling further can make happen to be Mexico favourable,” he added.