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The rising value of the dollar against the domestic currency has hit foreign travel plans but has brought upswing for the inbound travel market. While India remains an expensive destination compared with its neighbours, the fall in the value of the rupee has given India a cost advantage.
Tour-related inquiries from markets abroad were up 10 per cent and tour operators expect five-12 per cent rise in foreign tourist arrivals this winter. The inbound season begins in October. Also, the rising dollar is expected to boost the earning of local travel companies, said Ashwini Kakkar, executive vice-chairman, Mercury Travels.
According to tourism ministry data, foreign tourist arrivals in January-July were 3.83 million, a growth of 3.3 per cent in comparison with the 3.7 million during the corresponding period last year.
“As world markets and economies stabilise, the growth in inbound traffic to India should witness a rise. We are expecting eight-12 per cent growth in tourist arrivals between October to March over the same period last year. We hope to witness growth of six-eight per cent this year over the previous year. Growth in tourist arrivals to India will get an assured boost with simplification of visa policies and to some extent with the depreciation of the rupee,” said Arjun Sharma, managing director, Le Passage to India.
“Traditionally, countries in South-East Asia (e.g. Thailand, Malaysia, etc.) have had an edge over India because of lower hotel and ground transportation costs. With the fall of the rupee, this gap between India and the southeastern countries has shrunk.
At the current exchange rate, India is cheaper by 10-15 per cent,” Sharma added.
“We are optimistic that the falling rupee will make India an attractive and affordable destination, with an overall increase upward of five per cent tourist arrivals anticipated this winter,” said Surinder Singh Sodhi, senior vice-president and head (leisure travel inbound), Thomas Cook.
The travel company said it had seen a 10 per cent increase in queries from foreign markets..
Tour-related inquiries from markets abroad were up 10 per cent and tour operators expect five-12 per cent rise in foreign tourist arrivals this winter. The inbound season begins in October. Also, the rising dollar is expected to boost the earning of local travel companies, said Ashwini Kakkar, executive vice-chairman, Mercury Travels.
According to tourism ministry data, foreign tourist arrivals in January-July were 3.83 million, a growth of 3.3 per cent in comparison with the 3.7 million during the corresponding period last year.
“As world markets and economies stabilise, the growth in inbound traffic to India should witness a rise. We are expecting eight-12 per cent growth in tourist arrivals between October to March over the same period last year. We hope to witness growth of six-eight per cent this year over the previous year. Growth in tourist arrivals to India will get an assured boost with simplification of visa policies and to some extent with the depreciation of the rupee,” said Arjun Sharma, managing director, Le Passage to India.
“Traditionally, countries in South-East Asia (e.g. Thailand, Malaysia, etc.) have had an edge over India because of lower hotel and ground transportation costs. With the fall of the rupee, this gap between India and the southeastern countries has shrunk.
At the current exchange rate, India is cheaper by 10-15 per cent,” Sharma added.
“We are optimistic that the falling rupee will make India an attractive and affordable destination, with an overall increase upward of five per cent tourist arrivals anticipated this winter,” said Surinder Singh Sodhi, senior vice-president and head (leisure travel inbound), Thomas Cook.
The travel company said it had seen a 10 per cent increase in queries from foreign markets..
According to Ashwini Kakkar the overall profit of local travel companies will increase 12-15 percent this year. As the conversion value of dollar at the current rate is high it will reflect in a higher revenue for local tour operators. Kakkar said the benefit will come from existing bookings which were contracted when dollar value is lower than it is today.
"Price is not the only factor determining the choice of destination. There are other issues related to visa, connectivity, safety and security which impact the decision making. To the extent of pricing India will become more competitive but on other factors more work needs to be done,'' he added.
