Tour operators spot domestic tourism silver lining in foreign travel moderation

Pune: Prime Minister Narendra Modi’s appeal to skirt overseas travel for a year can be a boost to domestic tourism, provided govt pushes it.

Tour operators highlighted two roadblocks in the Indian tourism industry. First, exorbitant domestic airfares. Second, high hotel tariffs during holidays. They sought some sort of cap on either to boost inland travel.

Nilesh Bhansali, the president of the Travel Agents’ Association of Pune, said domestic tourism should be made more affordable if people are expected to avoid foreign travel. “At times, flying from Mumbai to Leh costs more than travelling to Dubai. Hotel tariffs in destinations like Goa often double or triple during long weekends, making domestic travel unaffordable for many,” he said.

Prime Minister Modi earlier this week made an austerity appeal to Indians amid global energy supply disruptions because of the ongoing West Asia conflict and rising fuel prices. He encouraged people to use public transport, avoid unnecessary gold purchase, revive the work-from-home practice and reduce non-essential foreign travel to conserve resources.

Travel industry representatives said the advisory could hurt the struggling international travel segment further, but give a fillip to domestic tourism. “International travel is suffering because of the high aviation turbine fuel (ATF) price. It has made every aspect of vacations expensive. Such appeals will have an impact on the travel industry, facing difficult times since early this year,” a travel company executive said on the condition of anonymity.

Mehboob Shaikh, the chairman of Travel Agents’ Association of India’s central and south Maharashtra chapter, said travel agents would be hit if international travel declined further. “We make most of our profits from international packages, flights, visas and forex. Domestic travel may increase, but it cannot compensate for international business. International travellers spend much more per trip. Naturally, the revenue per customer will drop with the decline in overseas travel,” he said.

Shaikh said dearer ATF had pushed up domestic airfares too, limiting the scope of expected shift towards domestic tourism. “Still, it is a good opportunity to strengthen the domestic travel market,” he said.

Santosh Gupta, the owner of Shree Vinayak Holidays, felt the Prime Minister’s appeal would not significantly affect the travel behaviour immediately. “No one can stop people from travelling. After Covid, travelling resumed with a big bang. People are adjusting their budget and continuing with trips despite the high ATF price. Summer vacation remains the preferred travel period for most Indians,” Gupta told TOI, adding that visible impact might emerge during the winter travel window.

Makrand Angal, the owner of Go Holidays, said some travellers were reconsidering foreign vacations. “My two clients were planning trips to Hong Kong and Macau, but at the last moment they switched to Kashmir,” he said.

Sujit Palikar, an IT professional from Kharadi, plans to travel to Australia next month with his family. He said Modi’s appeal puzzled them. “It has raised doubts. We are reviewing our plan,” he said.

According to Angal, domestic tourism offers better customer satisfaction. “Domestic travel is easier to manage and stronger competition keeps prices relatively controlled,” he added.

Another travel company representative said, “Travel today is not just a luxury. People travel for business, education, family needs, mental well-being and exposure. If airfare and hotel tariff become more reasonable within India, we will strongly promote domestic tourism,” he said.