Outbound travel and domestic tourism in India is expected to take a hit of over $500 million due to the Covid-19 outbreak, according to Indian Association of Tourism Operators. IATO president Pronab Sarkar said while outbound travel may dip by 50%, domestic tourism will also go down by 60% as Indians are cancelling their holiday plans amid fears of the Covid-19 disease.
“If the situation continues for more months, this loss will be higher. Some high net-worth individuals in the country have already cancelled their international trips fearing the risk of catching the disease,” he said. “I feel media coverage has deteriorated the confidence of travellers in the country. Once reports of the disease being controlled globally come in, I expect tourism to bounce back.”
The demand slowdown has prompted tour operators, such as Yatra, Thomas Cook and SOTC, to offer various schemes such as zero cancellation fees, alternative destination packages and rescheduling options to travellers. “Customers are wary of making fresh bookings to the affected locations and airfares to these destinations have dropped by over 40%. We have received close to 35% cancellation queries for overseas trips. We are advising and helping customers to postpone their travel dates,” said Sabina Chopra, co-founder and COO, corporate travel and head industry relations, Yatra.com.
SOTC Travel said it was focusing on offering domestic packages such as Andaman Youth Special-backpackers, Himachal Spiti bike trip and Sikkim bike trip. It is also offering customers the flexibility on departure dates, but with caveats. “We also provide customers insurance cover for the full sum insured for Europe, USA, Africa, Australia and New Zealand,” said Daniel D’souza, president and country head, leisure, SOTC Travel.
Rajeev Kale, president and country head—holiday, MICE and Visa, Thomas Cook (India) Ltd, said: “There is an increase in demand for spiritual tourism such as the chardham yatra.”
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