Inbound: Cautious optimism on ` slide
The volatility in rupee’s value and increase in input costs worries inbound players, as they hope to improve margins on the back of depreciation in value of INR versus the US dollar.
At present, inbound tour operators are getting more money what they have anticipated
The travel industry has been put in a peculiar situation due to sudden erosion of the value of rupee versus the US dollar. It dipped below the ` 60/$ mark briefly on 20 June 2013, while it continues to struggle to stay afloat. From the inbound perspective, a weaker rupee means that demand for destination India should rise. The industry stalwarts at this point are cau-
The American market will get a natural impetus, due to the dollar’s position
tious to acknowledge the upside of a weaker rupee from inbound perspective, as they want to weigh in other allied externalities.
As per Subhash Goyal, President, Indian Association of Inbound Tour Operators (IATO) and Chairman-STIC Travel Group, “The sudden steep devaluation or appreciation of INR versus US dollar badly affects the tourism industry at any time. A few years back, when rupee appreciated to ` 36-37, our inbound tour operator members who had given quotations to their foreign tour operators in US dollars 6 to 12 months in advance were in a for a very big loss, because the rates which they got from their hotel counterparts in India were higher than what they got from their overseas clients while converting USD into INR. At the present, the position is that inbound tour operators, while converting, are getting more money than they have anticipated.”
“There should be a balance in currency exchange rates. A few years back, the rupee value was stabilised between ` 42-45/$ and this stayed put for quite a long period. The tourism industry was not affected and tour operators, both inbound and outbound, were happy. Now this recent devaluation of rupee is not only affecting the tourism industry, but also affecting importers and also Indian consumers as a whole,” he added.
In words of Arup Sen, Director, Special Projects, Cox