Rupee slide cuts both real ways for tourism; hospitality sector shall bear the brunt
The drop in rupee value is really a double-edged sword for the tourism industry. While foreign travellers shall prefer India as a secondary option, the domestic hospitality sector may bear the brunt of high import charges for certain food and liquor items.
Generally, currency devaluation will not impact air tickets; however, hotel tariffs and shopping expensive get.
“Because the price of rupee falls, liquor and foods that people import get very costly automatically. Another disadvantage that the will face is that the guest who pays in dollars would obtain the accommodation at a cheaper rate,” said Tarun Thakral, Chief Operating Officer, Le Meridien. Other factors such as for example procurement and utility costs increasing will strain our profits, he added.
On, the rupee plunged to an archive low of 70.05 against dollar.
Industry observers also think that Indian travellers shall avoid a vacation to the united states and explore additional options.
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“Outbound tourists may prefer likely to other destinations such as for example Turkey, Russia, and Indonesia where in fact the value of the rupee may be the same or at the very least it have not fallen,” said Sharat Dhall, Chief Operating Officer (B2C), Yatra.com.
Industry watchers think that an 8-10 % fall in room prices is probable post rupee slide which can make India a stylish destination.
“Meetings, Incentives, Conferences and Exhibitions (MICE) will be one segment to take advantage of the fall in the rupee. Those likely to host a conference would turn to India due to cheaper rates,” said Garish Oberoi, President, Federation of Hotel and Restaurant Association of India (FHRAI).
Another positive impact can be an increase in the real amount of foreign travellers to India.
“THE UNITED STATES is probably the large inbound markets for India sufficient reason for this rupee depreciation there could be a rise in the amount of travellers there,” said Dhall.
Uttar Rajasthan and Pradesh could possibly be a number of the sought-after destinations among foreign travellers.
It isn’t a suitable time and energy to head to places such as for example Kerala, Goa, Nicobar and andaman Islands — which are most preferred by foreign travellers — as a result of monsoon, say experts.