The ongoing debt crisis in the US and Europe is expected to impact inbound tourism into India this season, according to hoteliers and travel companies.
There could be at least an eight to ten per cent dip in total inbound tourists, especially those coming from the UK, Italy, France and Spain. The loss, however, will be partly offset by tourists coming from Asian countries such as Korea, the Philippines, Vietnam, Russia and the Middle East.
According to a PTI report, recently, ratings agency S&P had downgraded the USA's credit rating while many countries in Europe, including Spain, Italy and Greece, continue to reel under a debt crisis, thereby raising questions over the health of the global economy. In such a scenario, business travel is likely to be hit more than leisure tourism, industry players pointed out.
“There is definitely going to be an impact on inbound tourism this season, as it was in 2008. The smell in the wind is the same. Especially in the case of Europeans coming to India, as they will start travelling within Europe and take short holidays,” opined Dipak Deva, CEO, Kuoni Travel India Destination Management - India & South Asia.
PRS Oberoi, Chairman, EIH Ltd, said that there was an expectation that global economies would see a recovery in 2011, but it had not happened. "Global economies and the economic environment are volatile and the world is confronted with economic uncertainties which could impact the company's business,” he stated.