India being one of the largest market for outbound tourists, allied expenses will remain a concern this season... Read More

MUMBAI: Ajinkya Kolte, a senior bank executive, and his wife Alka have decided to cut one night’s stay in a hotel in Florida during their upcoming US trip as the falling rupee against the dollar has sent their budget haywire.

The Goregaon couple said that allied expenses such as rides along Amazon in sout America and inside Disneyland have gone up by at least 10-15%.

“Airfare too has soared. We were planning to book during the offer period later this month,” said Alka.

The Koltes alone are not feeling the heat. Outbound tourists who have planned Diwali or Christmas tours will either bear the burden of the falling rupee or may alter their plans slightly, like the Koltes.

Operators said tourists will have to bear 7-10% more cost, rather than incurring huge losses that cancellations entail. However, the operators are hopeful of a correction by the time the vacation period kicks in.

Iqbal Mulla, chief counsel of global tourism council, an apex body of tourism association, said that on Monday, an air ticket to New York for immediate journey would have cost an average of Rs 65,000.

On, Wednesday, the same was dearer by Rs 15,000 to Rs 18,000. This is because other than the rupee depreciation, components like GST, airline tax, airport fees and convenience fees will also go up.

“A simple entry fee to the Empire State Building or a ticket to Disney land will now cost 10-15% more than what it was yesterday,” he said. However, the chances of tourists who have already booked international packages cancelling their plans are slim, said Himanshu Patil, director of Kesari Tours. “We don’t think people will cancel as then they will end up paying more cancellation charges.

They may come forward to change destinations, reduce the number of days or may even postpone, but cancellations look to be a remote possibility,” he added.

India being one of the largest market for outbound tourists, allied expenses will remain a concern this season.

“For tourists, other than the fall in rupee value, it is the cost of allied expenses they make during their tour that might go up. Alterations to trips are very much likely. At the current exchange rate, tourists will end up spending more to buy foreign exchange, which would tighten their travel purse strings substantially,” Patil told TOI.

But those in the planning stages will now decide to wait and watch. Abhijit Khadilkar, national general secretary of Enterprising Travel Agents Association, said he doesn’t see any immediate impact.

“It is not a sea change in dollar. Till the time the travel period sets in during Diwali and Christmas, there may be an appreciation. A year ago, tourists had a bonanza as the dollar collapsed and the value of rupee appreciated,” he said.

