As rupee plunges, X-mas holidays to get costly

  • | Sunday | 16th September, 2018

The rupee is at Rs72.10 for a dollar and is likely to weaken further. But a plunging rupee will negate this benefit. We have to shell out more for tours because the dollar’s value has increased. There are worries in the sector that it might go above Rs75,” he added. “Tourism authorities of Southeast Asian countries are watching the trend.

CHENNAI: With the rupee plummeting to an all-time low against the dollar, flying abroad for Christmas and New Year holidays is set to be dearer.Tour operators who are feeling the pinch over packages already sold at the old rate say tourists may have to spend Rs3,000 to Rs4,000 more for new packages to Europe, Southeast Asia and other regions.Except Malaysia , travelling to other countries in Southeast Asia has become expensive as transactions are done in dollars. The rupee is at Rs72.10 for a dollar and is likely to weaken further. People who have booked trips for the puja holidays will have to cut down on their budget for spending while abroad while those planning vacations abroad in December are likely to defer it by a month or two expecting rupee to settle.MK Ajith Kumar of Asia Pacific Tours said, “Package costs will be expensive for leisure travellers and those who have already paid are likely to travel.”He said, “This may also lead to downsizing of corporate travel abroad for MICE (meetings, incentives, conferences and exhibitions) as fresh approvals may be required as travel budgets will have to be amended."Basheer Ahmed of Travel Agents Federation of India (TAFI) said people who had already booked tours might have to cut down on their spending while abroad as they would have to pay more rupees for every dollar they use for shopping and other expenses.“Travel companies have already blocked rooms and made itineraries for tourists for packages based on the old rate of Rs69 for one dollar. We have to shell out more for tours because the dollar’s value has increased. There are worries in the sector that it might go above Rs75,” he added. “Tourism authorities of Southeast Asian countries are watching the trend. If there is a dip in tourist arrivals, they may reduce hotel tariffs,” he added.As there is a general dip in foreign travel in September, October and November, airlines have offered low fares. But a plunging rupee will negate this benefit.

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