India Fails to Entice Foreign Tourists in 2013

The Foreign tourist influx into India grew only 4 per cent between January and November in 2013, lower than the 5 per cent growth in 2012. The growth is also a plain one-third of that in 2010. This was
in spite of the rupee dropping 12 per cent in the first eleven months of 2013.

Industry experts say that reason for this difference could be travellers planning their journey well in advance. Arup Sen, Director, Special Projects, Cox & Kings, says “foreign tourists plan and book their holidays at least eight to nine months in advance. The impact will be seen only on the bookings of the next season that begins in October 2014.”

There also appears to be a strong link between the state of the global economy and foreign travel in to India. In 2009, when the world economy minimized, foreign tourist influx fell 4 per cent. Over the next two years, as growth picked up, tourists poured into India. With the global economy again stuck in the low gear in 2012 and 2013, foreign tourism too lost pace.

With spending on leisure travel being optional, it is among the first to take a hit when times are bad. Business-related travel too improves when the economy is doing well and business sentiment is positive. However, despite the economic gloom, all is not lost for the tourism sector.

With the strong growth domestic tourism has kept the tourism industry in good stead over the last couple of years. In fact, even as foreign tourist inflows fluctuated in tandem with the health of the global economy, domestic travellers have increased constantly, the growth being in double digits. Between 2009 and 2012, domestic tourists grew at 12-20 per cent.