Rupee fall will boost inbound tourism: Operators

The steep fall in the value of the rupee against the dollar has created new challenges for many industries which depend on imports, but for the travel and tourism sector it has opened up new opportunities. 

For foreign tourists, India has become a relatively cheaper destination as their cost in terms of rupee has fallen nearly 22 per cent. Naturally, with lower cost, the tour operators from abroad are expected to get more tourists to india, which even otherwise is a popular destination.

Big jump

According to the Department of Tourism, last year, in the inbound segment, close to 5.80 million people from overseas visited India. This year the figure is expected to see a big jump. 

Explained travel portal Via.com Head (Marketing) Balram Venugopal, “In so far as inbound is concerned, India as a destination becomes more attractive with the weakening currency and therefore, we can expect greater growth in this area.

On the contrary, outbound travel is likely to see slower growth as foreign travel cost for Indians will inadvertently increase due to weakening of the rupee.”

This is the time when India can truly cash in on its tourism potential, develop its places of interest and make strides across the industry and many operators are displaying faith in brand ‘India’.

Agreed Travel planner major Cox & Kings Head (Relationships) Karan Anand, who said that India is a long haul destination for inbound visitors as most of them come from European countries and the US.

Even a vast number of Indians or people of Indian origin residing abroad, may contemplate a flight to India now owing to the lower cost.

Tour operator Travel Tours India Private Limited Chief Operating Officer Ashwin Narayanan said that he expects a spurt in Non-Resident Indians (NRIs) visiting India to meet family, holidaying or on business, as it is opportune for them to do so.

Of course, the fall of rupee has made foreign travel somewhat more expensive for Indians, but that brings good news for domestic tourism.

The Department of Tourism data shows that more than 700 million journeys took place within India in 2010-11 and many well-to-do Indians, who travel abroad, may now replace a foreign trip with domestic travel.

That is why Venugopal suggests that tourism companies focus more on this segment of the market.