The Hindu Business Line : Forex earnings from tourism up in H1

Kolkata, Aug. 9 Riding on the back of an increase in foreign travel to India, the country’s foreign exchange earnings from tourism sector during the first half of 2007 registered a 14.4 per cent growth in rupee terms and 20.6 per cent growth in terms of US dollar.

Earnings during the period rose to Rs 18,258.57 crore ($4,293.46 million) from Rs 15,958.14 crore ($3,559.74 million) in the corresponding period a year ago.

The foreign tourist arrivals in the country between January-July registered 11.9 per cent growth with the increase in number to 27,64,361 from 24,69,506.

Leisure tourism

“The growth in the tourism sector during the first half of this year has followed last year’s pattern. Leisure tourism still remains the main factor in attracting tourists from abroad,” Mr M.N. Javed, Deputy Director General, Ministry of Tourism, Government of India, told Business Line over the phone.

However, he added that the traffic of leisure tourists has not been uniform across the country.

“Places in Goa attract more leisure travellers than Mumbai, Delhi or Bangalore.

The average room rates in Delhi, Mumbai and Bangalore have shot up and in these places, foreign traffic consist of mostly business and corporate travellers,” he added.

Business travel

Hoteliers across the metros confirmed that foreign business travel has been the main source of their revenue. “Nearly 65-75 per cent of our earnings are in foreign exchange. In Bangalore, around 70 per cent of the business (in hotels) comes from corporate travellers, of which foreign travellers constitute a major part,” said Mr Lemuel Herbert, General Manager, The Park, Bangalore.

According to Mr Javed, the Ministry expects 13-15 per cent growth in foreign tourist arrivals during this year.

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