Prime Minister Narendra Modi's recent appeal to Indians to avoid non-essential foreign travel for a year could potentially boost domestic tourism, but only if the government addresses key roadblocks, according to travel industry stakeholders. Tour operators have highlighted two major challenges: exorbitant domestic airfares and high hotel tariffs during holiday periods. They have called for some form of cap on these costs to encourage inland travel.
Industry Concerns on Affordability
Nilesh Bhansali, president of the Travel Agents' Association of Pune, emphasized that domestic tourism must be made more affordable if citizens are expected to forgo international trips. "At times, flying from Mumbai to Leh costs more than traveling to Dubai. Hotel tariffs in destinations like Goa often double or triple during long weekends, making domestic travel unaffordable for many," he stated. Bhansali's comments reflect a widespread sentiment among travel professionals that price parity is essential.
Context of the Appeal
Prime Minister Modi made the austerity appeal earlier this week amid global energy supply disruptions caused by the ongoing West Asia conflict and rising fuel prices. He urged Indians to use public transport, avoid unnecessary gold purchases, revive work-from-home practices, and reduce non-essential foreign travel to conserve resources. The advisory comes at a time when the travel industry is already grappling with high aviation turbine fuel (ATF) prices.
Impact on International Travel
Travel industry representatives noted that the advisory could further hurt the struggling international travel segment but might provide a boost to domestic tourism. "International travel is suffering because of the high ATF price. It has made every aspect of vacations expensive. Such appeals will have an impact on the travel industry, which has been facing difficult times since early this year," said a travel company executive on condition of anonymity.
Mehboob Shaikh, chairman of the Travel Agents' Association of India's central and south Maharashtra chapter, warned that travel agents would be significantly affected if international travel declines 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 travelers spend much more per trip. Naturally, the revenue per customer will drop with the decline in overseas travel," he explained. Shaikh also pointed out that dearer ATF has pushed up domestic airfares, limiting the potential shift toward domestic tourism. However, he acknowledged, "Still, it is a good opportunity to strengthen the domestic travel market."
Mixed Reactions from Travelers
Santosh Gupta, owner of Shree Vinayak Holidays, expressed skepticism about an immediate impact. "No one can stop people from traveling. After Covid, traveling resumed with a big bang. People are adjusting their budgets and continuing with trips despite high ATF prices. Summer vacation remains the preferred travel period for most Indians," he told TOI. Gupta added that a visible impact might emerge during the winter travel window.
Makrand Angal, owner of Go Holidays, observed that some travelers are already 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. Angal also highlighted that domestic tourism offers better customer satisfaction. "Domestic travel is easier to manage, and stronger competition keeps prices relatively controlled," he added.
Meanwhile, Sujit Palikar, an IT professional from Kharadi, who plans to travel to Australia next month with his family, said Modi's appeal puzzled them. "It has raised doubts. We are reviewing our plan," he noted.
Opportunity for Domestic Tourism
Another travel company representative noted, "Travel today is not just a luxury. People travel for business, education, family needs, mental well-being, and exposure. If airfare and hotel tariffs become more reasonable within India, we will strongly promote domestic tourism." The sentiment underscores the potential for growth if affordability issues are resolved.
In conclusion, while the Prime Minister's appeal may encourage some travelers to explore domestic destinations, the high costs of air travel and accommodation remain significant barriers. Industry stakeholders are urging the government to implement measures such as capping airfares and hotel rates during peak seasons to make domestic tourism a viable alternative to international travel.
