Madhumita Mookerji

Kolkata: As recession clouds loom over US, officials of the local travel industry are a worried lot.

Out of India’s total inbound travel, 15-16% comprise Americans.

The industry buzz is that already about 47% of Americans have cutback on their holiday plans because of a financial crunch.

Overseas travellers start making their bookings for the October-March season from May-June. Last year, inbound travel surged by 15% rise to around 5 million. However, industry experts say this figure could slip by 7-9% this calendar year.

“With the dollar showing signs of a slump, Americans seem to be altering their traditional vacation plans by taking a hard look at the current vacation costs,” Praveen Chugh, president, Travel Agents Federation of India (Tafi), said.

At Kolkata-based AR-ES Travels, about 5% of bookings from the US have already been put on hold,” Anil Punjabi, managing director, said.

According to CV Prasad, chief of Travel Agents’ Association of India (TAAI), the problem is not just restricted to the US. “It’s a global phenomenon. Growth will be subdued by about 9%.”

He said, “There may be some transformation in the vacation pattern. We do not expect cancellation of entire trips. These may now become a bit shorter in the next few months.”

Travel agents are, therefore, now promoting India in new markets. For example TAAI, in association with the Indian government and tourist office in Singapore, conducted a seminar in Singapore for the Asean market.

“We hope to create a new India Asean circuit,” said Prasad.

Travellers from the US and Europe spend around $120 and $140 a day respectively. In comparison, tourists from South East Asian countries spend only 50% of their American or European counterparts.

Arup Sen, executive director, Cox & Kings, said: “It is too early to predict whether the downturn will have an impact on inbound tourists as the bulk of inbound traffic comes from Europe.”

He, however, added that the Indian government is also tapping other destinations.

Source : DNA