After the demonetization has come into the effect, there has been a lot of speculations about the effect of demonetization on the tourism industry. According to reports published on many internet sites, we get to read that it has badly affected the tourists as most of the monetary transaction related to the tourism industry in India happen in cash which is true.
But how badly has Demonetization affected Travel Industry?
Let’s segment the tourists in India including the foreigners and the Indians into two categories. Category one is the tourists who book the packages online; who go for the leisure vacation through online booking portals and enjoy their vacations worry free.
The Second segment is the tourists who plan their vacation on their own. They decide the places to visit, use localization in their travel and they like to see everything on their own. So from demonetization, the tourists belonging to the second category of the travel industry have been hit hard because money is one of the most important aspects of their tour plan.
While the first segment making sure that they do not have to pay the price of unplanned vacation so they decide to pay everything online.
Bottleneck of the situation: Demonetization & Tourism in India
The bottleneck of the situation, however, still remains the same for both categories. Most of the sites including cultural heritages, shacks, paying guests, Homestays, adventure tourism, reserve forest entry fee etc still work in cash. And at these points, most of the tourists are still struggling.
Demonetization & the effects on the Tourism in Kerala:
According to a report published in the New Indian Express, Kochi is experiencing 60% lesser bookings due to demonetization.
Demonetization & the effects on the Tourism in Rajasthan:
Rajasthan has always been one of the favorite spots for winter tourism. Some of the famous offbeat tourist spots in Rajasthan are Bundi fort Utsav, Sawai Madhopur, Pushkar Mela etc. According to a report published in the Indian express, Bundi Utsav has experienced the lowest footfalls in the last five years. Read the full report here.
Travel Industry NOT/ mixed hit by demonetization:
While on the other hand, a report by India Today suggests that the demonetization had no effect on the travel industry. As stated in the beginning of the article, I also think that the demonetization had the effects on the travelers who became a victim by chance but not by choice.
On the other hand, a report published in India.com suggests that demonetization had almost mixed reactions on the leisure travel. Which is also true to some extent.