Credit storm forces tourists to look inwards

The Economic Times dt.19/12/08

Kerala, Goa and Rajasthan have emerged as the top three destinations for holidaying this New Year…..

IF DOMESTIC tourists were audacious in experimenting with foreign destinations and longer breaks last year, the travails of the economic slowdown have made them choose short-haul spots in India this time.
Kerala, Goa and Rajasthan have emerged as the top three destinations for holidaying this New Year as Indians prefer a quick and quiet retreat in a season marked by low-key celebrations and even lower bookings. And both Christmas and New Year maybe only a few days away, but a large chunk of enquiries were initiated only in the past few days. The lukewarm response is despite lower hotel prices and 50% discounts for spouses or no charge for including children.“Traditionally, the year-end is considered the secondlargest holiday season for Indians after the summer break when they all travel with families. This season, we have seen a marked shift towards domestic destinations,” says SOTC chief operating officer Sunil Gupta. He said 10-12% of the holidayers have given up on foreign locales and shifted to domestic destinations.
Added Cox and Kings executive director Arup Ghosh, “We have noticed people are going to domestic destinations for 4-5 days.” Even for foreign shores, domestic travellers are choosing to stay within South-east Asian countries like Malaysia, Singapore and Hong Kong, which are cheaper and easily accessible. A4-day/3-night trip to Goa will cost Rs 9,250 per person (inclusive of accommodation, travel insurance and meals but airfare). Similarly, a 5-day/6-night trip to Kerala covering four cities would cost Rs 16,000 per person excluding airfare. Choosing an international locale means shelling Rs 32,000-35,000 per person for a 5-6 day trip to Malaysia and Rs 43,000-Rs 45,000 for a 3-4 day trip to Singapore.
But the overall sentiment for holiday travel is low. As per market estimates, holiday business is down 20-25% this December compared to last year. ITC Fortune Hotels president Suresh Kumar said, “The overall sentiment is low due to obvious reasons.”