MUMBAI: With the free-fall of rupee, the dream of Indians traveling outside the country is taking a twist and turn. While the domestic tourism sees benefits in the free fall of rupee, most of the tourists are planning to enjoy domestic holidays this time. The rupee crash in the international market has brought several changes. It has swept away many dreams and plans. The Banker Nupur Sood plan of holidaying in Venice has been swept by the rupee crash and now the 35 years old would settle for cold beers on the alluring beaches of Goa on the India’s west Coast. “We are going for a leisure holiday, but it would be domestic. I think it is the only way to get rid of the pressure and compensate, “said Sood, who has planned to say next month at the plush Grand Hyatt hotel in Goa, managed by Hyatt Hotels Corp, as a consolation for missing her holiday of a lifetime in Italy.Sood is among the many India’s growing urban middle class, whose rising income has made the abroad holidays affordable, but the fall of the rupee has made it hard for abroad holidays and instead settled with domestic holidays. This would be a blow for those domestic tour operators, promotion overseas travel, but for those India’s who settle with domestic tourism hospitality sector, would benefit with the marginal cost. Hotel groups, including Starwood Hotels & Resorts Worldwide Inc, Marriott International Inc and Hotel Leelaventure Ltd are looking forward with the increase in the booking for the winter season from both domestic and foreign tourists. Especially from foreign tourists, who bring foreign exchange with them. “There is a lot of positive aspect in the hotel industry, for both these reasons - it being cheaper for inbound travellers and a substitute for outbound travellers - We expect to have a good winter, “said Dilip Puri, the managing director of India at Starwood Hotels. The Indian rupee hit all time low a record of 68.85, down by 20 percent for the year, despite multiple attempts by the government to calm investor’s concerns. Emerging markets more broadly are being hit by capital outflows in anticipation of a reduction in US monetary stimulus. The rupee recovered some ground on Thursday.The fall has contributed in the rise of domestic tourism by 35% from January and June and 15 to 20 % fall in outbound tourism over the period, the Associated Chamber of Commerce and Industry of India says. Every year around 15 million Indians usually go for overseas holidays, so with the crash of rupee, there would be fall and millions of them would love to spend holidays at domestic tourist destinations. It will also help selling rupee for foreign currency and a relief to the under-pressure rupee. Meanwhile, there is a rise in the flow of foreign tourists and from January to June 2.6% rise has been seen compared to the same period last year, figures from the Ministry of Tourism show and is expected rise further with the holiday season starting from November. GO GOAFor Goa tourism, the rupee crash would mean a lot as there will be rise in the inflow of tourists. The Leela hotel in India’s beach state of Goa, this summer was busiest compared to the past several years and the winter is also gearing to be busier season as the rupee crash will attraction domestic tourists as well as foreign tourists. The relatively warm climate and the festival season would highlight Goa tourism and also being an important tourist destination. Shridhar Nair, general Manager at the Leelaventure group hotel in Goa, said “India has become a lot cheaper this time”. The Leelaventure group has seen a rise of 10-12 % in revenues between April and June from domestic tourists and with the inflow of foreign travelers in the winter would add rise of booking by 12-14 percent compared to last year, which would be a best season for tourism in years.
