Category : Guest Post
Let’s talk about the power of travel!
Nowadays, everybody is talking about the economy and nobody is considering tourism as an industry. But my friend travel and tourism employs 7 times more than the automotive industry and 1/11 jobs. Yes, it’s true.
The tourism industry generates substantial economic benefits to both host countries and tourists’ home countries. Especially in developing countries, one of the primary motivations for a region to promote itself as a tourism destination is the expected economic improvement.
As the year progresses, each month brings new challenges, events which affect the tourism industry. In 2015, the total contribution of travel and tourism to GDP was $7,170.3bn (9.8% of GDP) and is forecast to rise by 3.5% in 2016 and so on. But after the brexit, US election, Demonetization, it will decline.
India is a promising market from tourism point of view. The impact of demonetization is likely to cause a short or medium term impact on tourism.
Feeling the Pinch
According to the findings, travel trade in India has reported around 40-45% drop in bookings for international tourists while business for the domestic travelers has gone down by well over 65%. In the UK, tourism growth will be downgraded annually after UK leaves the EU (Brexit) and the boost from the weaker sterling wears off. Money spent by visitors is a key component of contribution to Travel and tourism. It’s simple math, people will spend less as liquidity crunch.
Commodities like Accommodation, Transportation, entertainment, attraction, recreational services and food and beverage industry will fall. Employment and GDP are going to suppress eventually.Demonetization will have a positive impact on the economy in the long term, but there will be some short term impact on sentiments.
P.S. Cash Crunch ruined the party. Haha!