Have rupee, will travel

Rohit and Moneeta Kaila spend all their vacations in the US. The corporate professionals, who live and work in Bangalore, go on holiday several times a year. But when they go abroad, it’s inevitably to the beaches and warm climes of California.

“Both of us have travelled extensively around the world,” says Rohit, 32. “But now, with the rupee rising, we vacation only in the US because everything seems more affordable. Today $10 is only about Rs400. The air fares have gone up, but the rest of the vacation — including hotels, transport and other facilities — doesn’t make a dent in your wallet any more, the way it used to.” The couple, who love beaches, now think Miami, rather than Pattaya, anytime they feel like a seaside holiday.

The World Travel and Tourism Council (WTTC) estimates a 4.5 per cent per annum increase in the total amount of travel and tourism economic activity between 2002 and 2012. This is being attributed to an increase in global wealth, liberalisation of international airspace, cheaper flights and the use of the Internet as a travel tool.

For Indians, the rupee growing stronger against the recession-hit US dollar has, additionally, made many more vacation spots accessible to them — and easier on their pocketbook.

“The boom in tourism can be seen from the fact that Indians are spending two or three times as much on their holidays now,” says a Thomas Cook representative. “Factors like the cost of the Euro and the dollar [going down] has led to about 30 per cent increase in tourism, year on year.” Adds Sunil Gupta, COO of Kuoni Holidays & SOTC: “The fact that the rupee has gained considerably against the dollar, certainly helps tourists to the US, where you are actually buying dollar services. We have noticed a sharp upwards turn in tourist traffic to the US. Clearly everyone wants to take advantage of a weaker dollar.”

But that’s not the only destination. As a corollary, places where Indians can actually pay in dollars — like vacation spots in Europe, West or South East Asia and even as far as Hong Kong and Australia — have also come within reach of tourists.

It coincides with their expectations of, and spending on, vacations, and their growing sense of adventure and need to explore new places. Niyati Mehta, 32, writer, is headed for Spain this summer. It’s not her first trip, but it’s likely to be a more comfortable one. Thanks to a rising rupee, Mehta can now rent a service apartment and get a feel of living in the country.

“The rising rupee was not specifically a consideration for me, but it's obviously been a boon, as now I can spend more,” says Mehta. “It has come as a pleasant surprise. Not only is Spain cheaper than other parts of Europe, I'll also get my fix of fun and adventure here.”

A study by a travel agency lists ‘tour cost in Indian rupees’ as one of the factors that make Indian travellers select a particular destination — ahead of ‘Indian meals’ and ‘exciting new activities’, and just after ‘unique destinations’ and ‘discounted packages’. The benefits of a robust rupee show up in other small ways too.

Nitin and Jyotsna Bhise, who visited Singapore recently for their 25th wedding anniversary, say they were delighted to find their vacation budget going a long way.

“We chose Singapore as we had very little time to plan the trip,” says Jyotsna. “The stronger rupee came in handy while shopping. Everything suddenly seemed so much more reasonable and so we bought loads of souvenirs and gifts.” When the travel bug bites, that can only be good news for Indian tourists.
dnasunday@dnaindia.net