of Commerce and Industry of India says.
About 15 million Indians normally take vacations overseas each year, so the shift is keeping millions of them and their spending at home. It also means they will not be selling rupee for foreign currency, offering small relief for the beleaguered rupee.
Meanwhile, the number of foreign tourists arriving in India between January and June also rose, 2.6 percent over the same period of last year, figures from the Ministry of Tourism show, and is expected to rise further over the holiday season starting in November.
For The Leela hotel in India's beach state of Goa, it has been one of the busiest summers in several years and it is gearing up for an even busier winter season, which attracts Indian holidaymakers during festivals and foreign tourists drawn by a relatively warm climate.
"India has become a lot cheaper," said Shridhar Nair, general manager at the Leelaventure group hotel in Goa, which saw a 10-12 percent rise in revenues between April and June from domestic tourists, and foreign travellers are expected to push up its winter bookings by 12-14 percent over last year, which would be one of the best seasons in years.
Nair said the highest demand in the summer was for 'The Club' rooms, which sell for 60,000 rupees a night and have plunge pools and butlers.
The most popular tourist destinations of Goa, Agra, Jaipur and Pune stand to benefit the most from the surge in domestic and foreign tourism.
They were the only major hotel markets in the country to report growth in revenue per available room (RevPAR), a measure of profitability, in the year ended March 31, a report by hotel consultant HVS says.
The Leela also hosted two weddings initially planned for Greece and Thailand and a corporate event scheduled in Kuala Lumpur - events that were forced to move because of the rupee.
"Our currency has fallen much more than the Thai baht and Maldivian rupee so from the currency devaluation point we stand to gain the most," said Nair, who has seen a rise in enquiries from Russia, Europe and especially Britain, where