This season has been wiped out. The situation we are facing is unprecedented. Already reeling under the economic slowdown, the incidents in Mumbai have seen more cancellations than ever before. There is an approximately 50% slowdown in the sector. Though with the help of the Ministry of Tourism, we are trying to get some groups reinstated, but I estimate that the overall loss will be about 30%.
For the tourism sector, hotels are the most important component. And if bookings are down there, then the whole sector is affected. The hotel industry should reduce tariff by 20-25 per cent and focus on domestic tourism to survive.
To revive the situation, along with the minister, we are trying out some innovative steps. One of the steps we have suggested is 'Buy One Get One Free,' which was something Sri Lanka tried out after 9/11. We have to get aggressively into marketing. We are also requesting the government to make some concessions - which includes a two year relief from service tax and luxury tax. While the tour operators have been asking for the tax holiday on service tax, the hotels want the luxury tax to be waived for a while.
There are silver linings too. The industry has stood solidly together and we should be able to do things together. There is no significant drop either for the business travelers in India or China, nor is there any effect on VFR, or Visiting Friends and relatives category, but the other categories are hurting.
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