After IT and banking, the Indian tourism sector is beginning to feel the heat of global meltdown. The tourism sector, which was expecting a growth of around 15 per cent for the current fiscal, is already sailing in the stormy sea with a negative growth.
Though the tourism department is chalking out plans to overcome the crisis, a study done by the tourism committee of the Associated Chambers of Commerce and Industry of India (Assocham) revealed that inbound tourism from the United States has already been hit and by the end of the current fiscal, its adverse impact will be between 10 per cent and 15 per cent.
The states that would fall victim include Kerala, Tamil Nadu, Andhra Pradesh, Bihar, Uttar Pradesh, Uttarakhand and Jammu and Kashmir.
The study also highlighted that religious tourism and medical tourism would also come for a hit and therefore not much of movement is anticipated at well-known pilgrimages for religious tourism.
India’s domestic tourism would also top the hit list as Indian Inc. is passing through a bad phase where jobs are being cut, downsizing increasing, salary cuts anticipated due to shrinkages in margins of most of employers.
However, the negativity arising out of negative sentiments in economies of scale could be offset as India expects better tourist flow from countries in the entire Middle East because of its richness.
Likewise, South-East Asian countries and China are not that bad economically and their tourist inflow towards India will continue and even grow better as tourists are looking for leisure spending and India.
“The foreign exchange earnings through tourism would not have much of erosion during fiscal 200809,” said the Assocham secretary-general, Mr D.S. Rawat.
The decline in tourist traffic from the United States and European countries will be compensated by Middle East and South East Asian countries, which are not badly affected by the global financial crisis triggered sub-prime crisis in the US.
Though the tourism department is chalking out plans to overcome the crisis, a study done by the tourism committee of the Associated Chambers of Commerce and Industry of India (Assocham) revealed that inbound tourism from the United States has already been hit and by the end of the current fiscal, its adverse impact will be between 10 per cent and 15 per cent.
The states that would fall victim include Kerala, Tamil Nadu, Andhra Pradesh, Bihar, Uttar Pradesh, Uttarakhand and Jammu and Kashmir.
The study also highlighted that religious tourism and medical tourism would also come for a hit and therefore not much of movement is anticipated at well-known pilgrimages for religious tourism.
India’s domestic tourism would also top the hit list as Indian Inc. is passing through a bad phase where jobs are being cut, downsizing increasing, salary cuts anticipated due to shrinkages in margins of most of employers.
However, the negativity arising out of negative sentiments in economies of scale could be offset as India expects better tourist flow from countries in the entire Middle East because of its richness.
Likewise, South-East Asian countries and China are not that bad economically and their tourist inflow towards India will continue and even grow better as tourists are looking for leisure spending and India.
“The foreign exchange earnings through tourism would not have much of erosion during fiscal 200809,” said the Assocham secretary-general, Mr D.S. Rawat.
The decline in tourist traffic from the United States and European countries will be compensated by Middle East and South East Asian countries, which are not badly affected by the global financial crisis triggered sub-prime crisis in the US.
