While Indian hoteliers eagerly await tourist arrivals this season, the down under, apart from Europe, has emerged the preferred holiday destination for Indians.

According to Arup Sen, executive director, Cox & Kings India, the most popular long haul destinations for Indians include Australia and New Zealand. ?A good number of people are visiting cities like Melbourne and Sydney, and the Blue Mountains as well,? he said. China is also getting its fair share of visitors from India at the moment.

In the short-haul segment, there is demand for far east destinations including Malaysia, Singapore and Thailand . There is a rising interest among Indians to visit destinations such as Vietnam and Cambodia, as well. Also, there is demand for Dubai, Sen added.

According to a Euromonitor report, the outgoing tourism expenditure from India is expected to grow by over 25.7% between 2006 and 2011 to reach $21 billion by 2011, In the domestic market, Kerala, Goa and Rajasthan maintain their positions as the most preferred destinations among visitors this year too. ?Goa enjoys a healthy mix of international and domestic business through the festive and the holiday season. Being a resort destination and a real getaway, many Indians make Goa their preferred holiday hotspot,? said Brad Edman, area director marketing, Marriott International.

The rupee appreciation could be a dampener, but limited room availability will come of aid. ?Bookings this Christmas are good, despite escalating room rates, thanks to limited room availability,? said Madhavan Menon, managing director, Thomas Cook. Edman explains, ?Our hotels in India play host to many events and special occasions, especially for families and for business people on the move who want to feel at home.?

Hoteliers are also feeling the pinch and foresee pressure to further build up over time. ?The rates in Goa today are not less than $300 to $450 per night, which goes further high in Delhi to $500,? says Menon. Some hoteliers see a dip in foreign tourists turnout, since many prefer to return to their home for the annual holiday. ?Occupancy is usually around 60% during this time,? said an ITC Welcome Group spokesperson.