Global Crisis Shakes Indian Hotel Industry

November 2, 2008	(1 votes, average: 5 out of 5)  Loading ...
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The tourism and hotel industry are expecting a fall of 15-20 per cent in foreign tourist arrivals this year because of the global financial crisis. Analysts said that after the financial turmoil in the US and Europe, travelling was low on the priority list of foreigners. The peak season in tourism begins from September and stretches till February.

Tarun Thukral, chief operating officer of Le Meridien, said, “Occupancy levels have dropped to 65 per cent in October against 80 per cent last year.” Rishi Kapoor, director (strategic planning) of Imperial Hotel, said the effects of the global slowdown would definitely have an impact on the industry. “In terms of real growth, we have grown only a couple of percentage points against last October. Occupancy levels are 85 per cent now.”

He said the real impact would be seen in January since bookings for the current months had been done much in advance. According to Dimple Singh, assistant vice-president of Indian Routes, “September was a very bad month with tourist arrivals dropping nearly 20 per cent for our agency. The first 10 days of October have already seen a drop of 10-12 per cent. Both group and individual travel have come down and so has the number of queries for inbound and outbound travel.”

Although India received almost 5 million tourists last year, the country’s share in international tourism remains dismally low. Travel agents said terrorist attacks, an increase in air fares and the global financial meltdown were affecting bookings for the peak season.

News Published Under:   Hotel Industry in India |

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