There may be a drop in the number of outbound travellers in the short run on account of the sinking rupee. But the tourism sector may be able to make up with inbound tourists finding it cheaper to travel to India.

“Currently, it is a sort of see-saw situation. The hotel industry is going to benefit as foreign travellers will come in, seeing more value for their currency. Also, those planning who were to go overseas for vacation may start to look at options within the country which again will boost the hotel segment. Having said that, dollar going up is not a good sign for the economy,” said Garish Oberoi, President, Federation of Hotel and Restaurant Associations of India (FHRAI).

According to industry experts, the weakening of the rupee against dollar may discourage many outbound budget travellers. As per industry data, two-five million Indian tourists go to the US and Europe every year.

“Foreign tourists will now find it cheaper to visit India,” said Kapil Goswamy, CMD, BigBreaks, an online travel planner.

As it will have an impact on the tour packages, the industry also plans to come up with certain offers for Indian tourists. “We can make facilities and add-ons optional and become more flexible in terms of the premium services we provide with every trip,” added Goswamy.

But some feel that as the rupee depreciates, outbound tourists will explore newer destinations. “Emerging destinations such as South Africa, where the rupee has appreciated by 2.69 per cent against the Rand, and Turkey, where the rupee has gained against the Lira by 10.26 per cent, may see a spike in Indian visitors,” said Karan Anand, Head, Relationships, Cox & Kings Ltd.

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