Indian tourism at risk on debt crisis
The ongoing debt crisis in the US and Europe is expected to impact in-bound tourism into India this season, according to hoteliers and travel companies.business Updated: Aug 22, 2011 21:25 IST
The ongoing debt crisis in the US and Europe is expected to impact in-bound tourism into India this season, according to hoteliers and travel companies.
“There is definitely going to be an impact on inbound tourism this season, as it was in 2008. Especially in the case of Europeans coming to India, as they will start travelling within Europe and take short holidays,” Kuoni Travel India Destination Management India & South Asia CEO Dipak Deva said.
There could be at least 8-10% dip in total inbound tourists, especially those coming from the UK, Italy, France and Spain.
The loss, however, will be partly offset by tourists coming from Asian countries such as Korea, the Philippines, Vietnam, Russia and the Middle East, Deva said.
Usually, foreign tourists visit India during the autumn and winter seasons.
“There was an expectation that global economies would see a recovery in 2011. Unfortunately, this is not happening,” EIH Ltd Chairman PRS Oberoi said.
Recently, ratings agency S&P had downgraded the US’s credit rating, while many countries in Europe, including Spain, Italy and Greece, continue to reel under a debt crisis, thereby raising questions over the health of the global economy.
In such a scenario, business travel is likely to be hit more than leisure tourism, industry players pointed out.