India – Tourists outflow from India have registered a significant decline of up to 20 per cent in the last two months owing to weakening rupee against dollar, an industry body survey has said.
The falling rupee is definitely resulting in a slowdown in foreign trips by Indians, mainly the middle-class. The outbound tourist outflow registered a significant drop of 15-20 per cent due to weak rupee,” Assocham said in a survey.
“Weak rupee have made foreign trips unaffordable for Indians. Indian tourists are not just restricting their vacation days, but are opting for holidays within the country rather than going abroad,” Assocham Secretary General D S Rawat said.
In tune with surge in stocks, the rupee today rose by a staggering 80 paise, its biggest single-day gain in last nine months, to close above the 60-mark at 59.39 amid signs of strong fund inflows on hopes that US Fed will not begin tapering monetary stimulus soon.
Forex dealers said sustained dollar selling by exporters tracking weakness in the US currency overseas also boosted the rupee.
The rupee commenced at 59.95 a dollar as against previous close of 60.19 at the Interbank Foreign Exchange (Forex) market and immediately touched a low of 60.02.
The survey said Indian travel companies are reducing the number of days from packages to make it more affordable for globetrotters.
Most of the middle-income groups are looking to offset those costs by opting for shorter duration stays and looking at budget accommodation options.
The survey said most of the travelers are opting for domestic options due to high air fares. The demand for destinations like Kashmir, Ladakh, Goa, Himachal and Sikkim, which thrive on foreign tourists in a normal year are seeing a spurt in domestic travelers.
Further, the survey said that due to depreciating rupee, India has become an attractive destination especially for inbound travelers.