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Weaker pound to benefit Indian tourists, students

Even as its exit from the European Union has gotten most sectors worried, the United Kingdom has become a more attractive destination for Indian travellers and students, thanks to a weaker pound.

The British pound collapsed to a 31-year low against the dollar, crashing about 10 per cent during the day on Friday against the rupee. The British currency ended the day about Rs. 7 lower at Rs. 93.5 per pound.

While it is difficult to predict the currency movement, experts are of opinion that further correction is likely to be seen in the pound. This could mean likely saving of more than 5 per cent for Indians travelling to the U.K.

“We expect a further correction of around 3-5 per cent in pound against the rupee. It is likely to remain in the range of Rs. 88-Rs. 90 in the next few weeks…It can also touch a level of Rs. 85 in a worst-case scenario,” Navneet Damani, Associate VP (commodity research) at Motilal Oswal Commodities told The Hindu.

Sharat Dhall, President at Yatra.com said, “Brexit has resulted in a big drop in the value of the pound and if this trend remains then we could see a surge in leisure tourism to Britain, as it will become significantly cheaper.”

Leisure packages

He said the drop of about 11 per cent in the pound will result in a 4-5 per cent reduction in the cost of leisure packages to the U.K. Rakshit Desai, Managing Director India at FCM Travel Solutions and Flight Shop said he does not see a discernible impact of Brexit on global travel to the U.K. as “the peak leisure season is behind us.” “But, for those planning a vacation in the immediate future, the exchange rates are expected to provide for 5-7 % savings in package costs.”

Mr. Desai said the British summer is still strong, advising travellers planning an international trip in the near future to consider U.K.

The drop in the pound is also likely to result in an increase in Indian students choosing the UK as a destination for higher education as this will make studying there significantly cheaper.

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Printable version | Oct 28, 2020 5:31:56 AM | https://www.thehindu.com/news/national/Weaker-pound-to-benefit-Indian-tourists-students/article14399821.ece

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