The Hindu : Kerala / Kochi News : Tourism sector feels the heat

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Friday, Oct 31, 2008
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Kerala

Kerala - Kochi

Tourism sector feels the heat

K. S. Sudhi

Individual backpackers may cancel their trips in the wake of the economic crisis.

KOCHI: The tourism sector of Kerala has started feeling the heat of the U.S. meltdown and the economic crisis it has triggered worldwide.

Though the current tourist season may escape unscathed, the January plus season is likely to be hard hit, fear those in the sector.

Most of the travellers from the U.S. and other European countries plan their itinerary much in advance and any cancellation of trips will cost them dearly. There have been no instances of cancellation of trips by groups since the crisis broke out, said Lancy George, General Manager, Govan Travels.

Instead, they are reconfirming their travel plans, he said.

There is the possibility of individual backpackers cancelling their trips in the wake of the economic crisis. Though there may not be any major upsets in the business in the sector this season, it may not be the case next season. There is the likelihood of tourist inflow thinning in the next season, he said.

At the same time, the tourism establishments of the Kerala Tourism Department Corporation (KTDC) have started feeling the pinch of the economic crisis. While the room bookings have recorded a drop of 20 per cent, there has been a shortage of around 40 per cent in the booking of banquets, according to the KTDC sources here.

Earlier, multi-national companies used to throw regular banquets and this has come down drastically. The spending pattern of the young and urbane segment of the society has also come down considerably. The young extravagant customers, who are easily identifiable by their bright short shirts, big shoes and with a long hair, have now minimised their spending. This trend should be a reflection of the crisis that has gripped the real estate and IT sectors, observed a senior official of a KTDC luxury hotel.

The sponsorships offered by various banks, MNCs and private companies for various functions have also dropped thus affecting the business of the Corporation.

There is the likelihood of the Corporation losing around 40 per cent of its business, he said.

The outbound passengers from India would be one major segment that would be hit by the crisis as the hotels and tour packages have become more expensive for them abroad. The food, travel and boarding have become expensive in the foreign tourist destinations like Singapore, Thailand and Malaysia, said those in the sector.

Normally, the KTDC used to get good advance bookings during November-December period for the tourist season of the next year.

However, that has not happened as expected this year and the number of bookings have dropped sharply for the January plus season, said a senior functionary of the Corporation.

Food is an inexpensive item for the tourists in the KTDC hotels and the crisis has not yet reflected on the eating habits of the guests. However, a downward trend was visible in the wine consumption.

It also seemed that the tourists were imposing a cut in their shopping budget especially the handicrafts items, he observed.

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