The fall of the Indian rupee, which has touched unprecedented lows, has affected tourism to and from India.
The value of the rupee, which has fallen below the psychological resistance level of 59.52/dollar, has affected the travel plans of many groups. From students who were planning to settle down in foreign nations to those who had plans to vacation abroad, all have been affected by the weak value of the rupee.
As foreign trips have become quite costly for Indian tourists, many people are either cancelling or cutting short their foreign trips. They are also opting for domestic destinations. A survey by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), said, ‘the foreign tourist outflow registered a significant decline to the extent of 15-20% due to the falling rupee. In the wake of the record rupee depreciation, Indian tourists are not just cutting their vacation days, but are opting for holidays within the country rather than going abroad.’
An official with STIC, a travel agency, said, ‘The depreciation in the Indian currency has definitely impacted the tourism industry as we’re seeing a 15 per cent drop in outbound travel to dollar destinations, which are usually packed during the holiday season. If the equation between the rupee and the dollar doesn’t change soon, there might be a 30 per cent drop, which would be rather alarming for us. For the past few days, we have also been seeing the impact of the rupee hitting an all-time low. Travellers are opting for South-East Asian destinations and even Europe, but destinations such as the USA and Canada have, all of a sudden, fallen out of favour with Indian travellers.’
On the other hand, the number of foreign tourists visiting the nation has increased, as foreigners are cashing in on the low value of the rupee for their vacations.