Ahmedabad: Prime Minister Narendra Modi's recent appeal to citizens to prioritise domestic tourism over foreign travel has sent fresh tremors through Gujarat's already stressed travel industry. At a time when the industry was still nursing wounds from the ongoing West Asia conflict, the PM's announcement not only translated into weak demand for international travel but also led to cancellations in some cases.
Immediate Impact on Bookings
The ripple effect was almost immediate. Virendra Shah, ex-chairman of the Gujarat chapter of the Travel Agents Association of India (TAAI), cited a telling early signal. A senior government official who had confirmed a booking to a far east destination promptly cancelled it following the PM's announcement. The industry was already battling reduced international holiday bookings due to the West Asia conflict and inflation. The latest development adds yet another layer of uncertainty to an already fragile market, Shah said.
Compounding Challenges
The cumulative pressure is weighing heavily on travel businesses. Bhavesh Manglani, managing partner of a city-based travel firm, explained that sentiment was already deeply impacted by the war in West Asia, including the uncertainties and skyrocketing airfares driven by rising crude oil prices. Several international airlines have also slashed frequencies. The PM's announcement dissuading people from vacationing abroad has now compounded this. Only seasoned travellers or those travelling for work are going ahead. The rest are simply stepping back, and that directly hits revenues.
Revenue at Risk
For travel companies in Gujarat, international bookings are not peripheral; they are foundational in terms of revenue inflows. Ankit Bajaj, owner of a city-based tour company, quantified the anxiety: International travel accounts for at least 40% of annual revenues for a majority of travel industry players. Any sustained reduction will certainly translate into losses. He added that while domestic corporate travel would hold, international corporate movement is expected to drop sizeably.
Destination Weddings Shift
Perhaps most revealing is the impact on destination weddings abroad, which is a high-value, high-margin segment. Two of seven clients exploring international venues for their upcoming weddings have now clearly opted to go domestic, Bajaj disclosed. For an industry accustomed to routing elaborate wedding parties to Thailand, the Maldives, and Europe, the shift to domestic destinations will come at a cost for the travel industry.
About the Author: Niyati Parikh, Special Correspondent at The Times of India, covers Gujarat's corporate sector and MSMEs across renewables, IT, textiles, BFSI, and more. She tracks taxation, GST, GIFT City, and IFSCA with a data-led, industry-focused lens.
