The Telegraph
Monday , June 11 , 2012
Since 1st March, 1999
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Falling rupee a boon for hoteliers

New Delhi, June 10: The depreciating value of the rupee has led to a rise in foreign tourists who have seen their expenses falling over 25 per cent.

Indian tourists planning a holiday abroad have also altered plans with the rupee slide pinching the pockets.

A devalued rupee translates into spending more in rupees on tours abroad. On the other hand, those spending dollars in India will have to shell out less.

Analysts said the weak rupee led to premium resorts and five star hotels in India slashing prices 30-40 per cent in dollar terms, which is attracting foreign and domestic tourists alike.

“We have seen a surge in inbound traffic over the last couple of months. Due to the decreasing value of the rupee, India has become an attractive destination for inbound tourists,” said Manmeet Ahluwalia, marketing head of travel company Expedia India, adding that Indians have also booked domestic tours because of the overall rise in the cost of international travel.

According to Expedia, the trend shows a 20-25 per cent rise in domestic bookings.

“Indians who have shifted to spending holiday within the country have upgraded their travel for a richer experience. So they are booking five star hotels and resorts where they can enjoy the luxury and leisure for the same budget they had decided to spend on a foreign trip,” Ahluwalia said.

“Though it is still early to come to a conclusion, but there has been an increase in the number of people coming to India. European destinations have become more expensive,” said Anil Bhandari, chairman AB Smart Concepts.

However, according to a few travel agents, domestic airfares, which are around 30 per cent more expensive this summer, still pose a challenge.