Travel Industry in Crisis: PM’s Appeal and Rising Costs Hit Tourism Hard
Travel Industry in Crisis: PM’s Appeal and Rising Costs Hit Tourism Hard
Following Prime Minister Narendra Modi’s appeal for citizens to avoid foreign travel to help conserve foreign exchange reserves amidst the US-Iran war and subsequent crude oil price hikes, the tourism industry is facing a severe downturn. Travel companies report that the situation has become worse than the COVID-19 pandemic. Sanjive Chajed of CK travels say, “We accept and appreciat the forex requirement of Country and need to save forex, but government must support the industry to sustain existence of the industry in this time of trouble.”
Key Challenges Faced by the Tourism Sector:
Massive Decline in Business: Corporate travel has plummeted by 75-80%, and overall travel bookings have dropped by more than 50%.
Operating Burden: Unlike the pandemic, when staff salaries were halved to reduce costs, travel agencies are now struggling with full salary expenses despite a near-total loss of income.
Rising Costs: Surging crude oil prices have led to a massive spike in airline fares. A domestic flight ticket to Goa, usually costing ₹4,000–₹5,000, has soared to around ₹30,000, making domestic travel as expensive as international trips.
Refund Issues: Travelers who booked trips to Gulf countries before the conflict are now struggling to get refunds, with many travel agencies reportedly avoiding calls and messages from clients.
Industry experts, including Sanjeev Chhajed of CK Travels/Flamingo and Paresh Shah of Vishwa Travels, note that the combination of high airfares, the PM’s travel advisory, and railway booking difficulties has left the tourism sector in a dire state.
