The falling rupee may spell good news for India’s tourism sector.
The hospitality industry, hit by lacklustre demand in the first quarter of the current fiscal, is likely to gain from the sharp depreciation in the rupee, which could position India as an affordable destination over other south east Asian countries.
The number of foreign tourists visiting India grew by 3.2% in May and 2.5% in June compared to year-ago periods.
Going forward, growth is likely to go up, said experts.
Bookings for the October- December period could rise due to the weakening of the rupee, said Arjun Sharma, managing director, Le Passage to India, a premium inbound tour operator. “Though until now we have not seen any impact of the weak rupee on the sector but going ahead, bookings for the winter season could go up.”
“As a silver lining we are hoping that this will encourage tourism from weak European economies and may help India to be positioned as a more affordable hot spot for tourism,” Meena Bhatia, vice-president, marketing and operations, Le Meridien Hotels told HT.
The inflow of foreign tourists could see a surge and could even register a 10% growth, said Subhash Goyal, founder chairman, STIC Travel Group.