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.

TravTalk - India - - Analysis - VIVEK SETHI

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

Sub­hash Goyal

Pres­i­dent In­dian As­so­ci­a­tion of In­bound Tour Op­er­a­tors

Arup Sen

Di­rec­tor Spe­cial Projects, Cox & Kings

Surinder Singh Sodhi

Se­nior Vice Pres­i­dent & Head, Leisure Travel In­bound, Thomas Cook In­dia

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