Domestic tourism following the demonetisation move on November 8 has drastically come down by 65 per cent, while international tourist inflow has reduced by 40 per cent in the last two months, as compared to November-December 2015.

The two-month period in 2015 had witnessed an increase of 35 per cent in domestic tourism and 20 per cent in international tourist inflow, according to industry body Assocham.

Drop in bookings With shortage of cash dampening consumer confidence, the ongoing tourism season is witnessing a significant dent, with not much enthusiasm for Christmas and New Year holidays at some of the popular destinations, which are reporting at least 65 per cent drop in bookings, barring Goa that is catching up of late.

Even though the tourism season begins around October-November, it picks up around Christmas and the New Year, with tourists making beeline to popular destinations in Rajasthan, Madhya Pradesh, Uttar Pradesh, Gujarat, Uttarakhand, Goa and Kerala, while some enthusiasts also head for the hills to witness snowfall, the survey conducted by the Associated Chamber of Commerce and Industry of India (Assocham), said on Tuesday. Travel trade reported around 40-45 per cent drop in bookings for international tourists while business for the domestic travelers has gone down by well over 65 per cent.

There is also slowdown in the number of bookings from international tourists, considering November, December and January being the peak season of international tourists’ inflow. The drop in bookings has also resulted in lowering of the rates for hotels and airlines tickets to the extent of 30-35 per cent as compared to similar months of the previous year.

While the travel trade including airlines, hotels and railways have mostly shifted to online bookings, the impact is seen largely because of erosion in the consumer confidence as most of the self-employed people have been witnessing a sharp decline in earnings while professionals employed in the organised sector too have been affected psychologically by the “scarcity syndrome”, said DS Rawat, Secretary-General, Assocham.

This year, the prospects of this peak season look subdued as fallout of the demonetisation drive unfolds. According to the industry insiders, a staggering fall of about 60-65 per cent in domestic bookings and around 40-45 per cent fall in international bookings has brought the travel and tourism and hospitality industry virtually to a standstill.

Organised tours stable The flow of tourists coming under organised packages and groups has not been affected, but many of those who do not plan their stay in advance have cancelled their trips. The tourists visiting the States, especially foreigners, also complain of difficulties in getting their currency exchanged.

The number of travellers in organised trips has not been affected much because their hotels and taxis are booked in advance. The occupancy of hotel rooms have come down and the impact is also visible on taxi operators, small vendors and others.

Related Topics
comment COMMENT NOW