Tourism sector's forex earnings dipped 8%

While the Indian travel and hotel industry is gung-ho about increased bookings and occupancies this year, the statistics from the department of tourism show that the foreign exchange earnings in 2002 at $2.8 billion have not only shown a 7.6 per cent dip compared with the 2001 levels of $3 billion but is also 11.2 per cent less compared to the 2000 earnings of $3.17 billion.

Not surprisingly, the total arrivals in 2002 at 2.35 million are not only 7.2 per cent less than 2.54 million arrivals in 2001 but also 11.1 per cent less than the 2.65 million arrivals even in the year 2000.

The department estimates, therefore, signify that despite the government's efforts to promote India as a tourism destination on the foreign platform with its 'Incredible India' campaign, both the arrivals and earnings have seen a continuous dip.

While the domestic hotel industry still maintains that bookings in 2002, specially during the last few months, have surpassed even 2000 levels, the travel operators are experiencing the heat.

An Oberoi group spokesperson said: "Bookings this year have surpassed all the earlier levels with all the villas and hotels being full."

Assocham expert committee on aviation and tourism chairman Subhash Goyal, however, said that travel operators business is still down by about 10-15 per cent compared to 2000 levels.

The hotels in metros are doing well on account of increased number of conferences happening in India.

Also, weddings have now been banned in farmhouses which is forcing people to shift the venue to a hotel.

Experts say the current boom has been fueled by an increase in domestic tourism and an improved business sentiment.

Agrees Ritu Dhawan, manager-corporate communication, The Grand in Delhi: "The bookings have gone up considerably during October-December over the last three years and it is basically due to a boost in domestic travel and an improved business sentiment on account of divestment, launches in consumer goods and automobiles and also because of an improved activity on account of the forthcoming World Cup."