FALLING RUPEE IMPACTS INDIAN OUTBOUND TOURISM
Over the last few years Indians have been increasingly spending holidays in exotic foreign destinations thanks to the Indian growth story which has increased the purchasing power of its citizens. This year, however, the sliding rupee is turning out to be a spoil sport not only for the economy and the government but also average Indian citizens looking forward to a vacation abroad. Indian families this summer vacations are finding themselves holidaying within the country. The weakening rupee has made overseas travel 15-30 per cent costlier making local hotspots favoured destinations for most Indian tourists. As the domestic currency oscillated between Rs. 52 to 56 against the US dollar over the past one month, the volatility forced Indian tourists to either postpone their vacation overseas or choose less costly domestic destinations. In some cases, people had either shortened their foreign trips or postponed their travel indefinitely, travel experts said. “Last one month’s trend show a flat or small growth in outbound tourism. The demand has not really taken off considering this is the peak season,” travel portal Ixigo. com CEO Aloke Bajpai told PTI. “(Travel plans to) Europe and the US have been impacted the most compared to South East Asian destinations,” he added. The experts feel that broad cross-sections of tourists are bearing the brunt of the falling rupee as they made travel plans well in advance. Although the upper middle class largely remains unfazed by the declining rupee, it is mostly the middle class that are facing the impact of the fall. “Change in behavioural pattern, due to rupee fall, is basically seen among the lower and the middle class of Indians,” Expedia Marketing head Manmeet Ahluwalia told PTI. “They have either postponed their travel plans or are choosing destinations within India. Places like Kerala, Goa and Rajasthan are popular. Domestic 20-25 per cent shift is seen,” he noted. Going by estimates, an Indian tourist on an average has to now shell out 10-20 per cent more for trips to South East Asian destinations like Thailand, Malaysia and Singapore. In the case of European nations and the US, costs have escalated 25-30 per cent due to rupee volatility. As per trends observed by Expedia, domestic travel bookings have seen 20-25 per cent rise especially since those who plan vacation on tight budgets are doing extensive research to figure out the best possible and less-costly holiday destination. Among the favourite local destinations Kerala, Rajasthan and Goa top the charts. This is because these locations although not ideal places in the summer months tend to offer heavy discounts as most hotels and resorts register low occupancy levels on account of humid and hot weather. Moreover, many of those choosing domestic hotspots such as Kerala and Rajasthan are prefer richer experience in terms of facilities. “Indians who have shifted to spending holiday within the country have upgraded their travel for richer experience... So Indians are booking five star hotels and resorts where they can enjoy the luxury and leisure for the same budget they had decided to spend on foreign trip,” Ahluwalia said. Many travel websites including Expedia India and MakeMytrip are offering good discounts for hotel bookings and other holiday packages. Agencies are offering their customers chance to develop their own packages suiting their needs and budget. MakeMyTrip Chief Business Officer Mohit Gupta said that international holiday packages provide the best-value deals. “Travellers could either opt for better clubbed deals or look at short-haul destinations instead of long-haul ones to optimise their holiday budgets, “We expect that short-haul destinations in South-East Asia such as Thailand, Singapore and Bali will see increased bookings due to the great value they provide,” Gupta added.
MMTC LIKELY TO EXPORT IRON ORE TO JAPANESE, SOUTH KOREAN STEEL COMPANIES FROM JULY
State-owned trading giant MMTC is expected to export 2.8 million tonnes of iron ore annually for a period of three years to Japanese and South Korean steel companies, including POSCO. “We have signed iron ore supply contracts with five Japanese firms and one South Korean company for a period of three years. The exports are expected to start from July this year,” an MMTC official has said. Under the pact, MMTC will supply 2.3 MT of iron ore per annum to five Japanese firms including Nippon Steel Corporation, JFE Steel Corporation and Nisshin Steel besides 0.5 MT to South Korean major POSCO, the official said. Recently, an official delegation of MMTC has visited Tokyo and Seoul to sign contracts with these firms. The Cabinet, in March, had approved export of iron ore by MMTC to Japanese and South Korean steel mills for three more years. The supply of iron ore, although in smaller quantities, has been a core element in the bilateral ties with Japan and South Korea and would further strengthen the relations, the official said. MMTC would supply iron ore (lumps and fines) of grade