After ban of Rs 500/1000 notes, Tourism sector predicts initial impact in business, especially high end leisure travel, but good for future

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Mumbai | Updated: November 09, 2016 10:33 AM

The surprise announcement made by PM Of India to fight corruption, to ban use of Rs 500 and 1000 notes havs send a panic wave across business, with the tourism industry being no exception. The tourism industry especially those in the outbound travel space have expressed their view that business will de

money-l-ptiTour operators catering to the destination weddings niche sector, predict that they will face challenges in the coming months. (Source: PTI)

The surprise announcement made by PM Of India to fight corruption, to ban use of Rs 500 and 1000 notes have send a panic wave across business, with the tourism industry being no exception. The tourism industry especially those in the outbound travel space have expressed their view that business will definitely witness a dip especially in the high end leisure travel space, atleast initially. few tour operators have already received requests from clients for cancellations of trips. Tour operators catering to the destination weddings niche sector, predict that they will face challenges in the coming months.

Says, Subhash Motwani, founder, Namaste Tourism, Mumbai, “”The destination wedding industry will be adversely effected. In the short term the travel business will have an impact but in the long run it will be positive for the tourism industry as paying by cheque, demand draft, wire transfer or credit card will be the positive norm and this is a positive sign for the industry.” Few in the industry feel this move will shift bookings the online.

Jayesh Asher, head, Pearl Travels, Pune, feels, this money will definitely put an initial curb on extravagant leisure travel expenditure. Jyot Jhaveri, Sunday Holidays, Mumbai, supports Asher’s view but feels this will all pan out over the months for the benefit of the industry. Anuj Singhal, head, Travel Representation House, New Delhi, says, “Black money is used in travel and tourism especially in smaller cities. This will certainly have a negative impact on tourism. People will have more tendency to book online.” S Maheshwari, MD, Rainbow Vacations, Jaipur, “Leisure travel in the short term will be affected and but corporate may not will be unaffected.”

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