Tourism and Travel Trends from India:

News and views on India's Travel and Hospitality Sector

Weekly News Related to Travel Industry in India

Places in the News

1. Balasore for the art lovers

Have you always been attracted to folk and tribal art? Then visit Balasore of Orissa this season and you could have one of the most memorable tours you ever had. The reason: Here you could see tribal artists at work, painting the walls of houses in and around the entire town with pictures depicting the lifestyle of tribals, their culture, flora and fauna and designs.

The artists are led by Kesudas, a popular cartoonist and executive director of Baleswari Kalakendra, an organisation spearheading a movement to revive ancient arts. The painting spree has been on for the past one month.

"Tribals are considered the first artists. Earlier, tribal arts were more popular than other typical art forms. But, unfortunately, tribal arts and crafts are almost on the verge of extinction due to several reasons," Kesudas said.

"We have decided to revive the forgotten art of tribals who live in our town and have forgotten their art and culture," he added.

In the first phase, tribals artists such as Marut Rout, Partha Sarathi Mohanty, Gadadhar Mohanty, Bibhuti Das, Malay Maharna and Balu Behera have painted at least 10 houses in each tribal settlement in 31 wards of the town at their own cost.

"We have decided to cover the neighbouring areas too and also the neighbouring district of Balasore. We urge tribal artists from other districts to follow us. Tribals should not stay away from their distinct art forms," he added.

Painting has always been very important in tribal culture and festivals.
September 19, 2007
Source: MSN India

2. Bihar to feature in Japanese magazine

Japan’s leading tour operator Nippon Express Company Ltd will do a special feature on “Buddhism and Bihar” for its magazine. This was stated by tourism minister Nand Kishore Yadav, who returned from Japan after participating in a seminar on “India tourism” held in Tokyo on September 12.

The seminar was jointly organised by FICC and Japan Association of Travel Agents. The seminar included a one-to-one interaction with tour operators.

Speaking to mediapersons on Tuesday, Yadav said that the magazine had a circulation of over 4.5 lakh in Japan and that the special feature would create awareness about tourism in Bihar.

"Only 9 per cent of the Japanese visit India for business purposes. The rest come for religious tourism. During the seminar, I emphasised that religious tourism cannot be complete without Bihar being in the itinerary since the state is the land of enlightenment," Yadav said.

He said that he also assured tour operators in Japan that the state government had started implementing several projects for tourists like air taxis, good roads and motels and hotels of international standards. He said that he had also invited tour operators to visit the state.
September 19, 2007
Source: Times of India

3. The first twenty Indians that is ready to travel to Siachen with the Indian Army

India is taking its first twenty civilians to conquer Siachen. It will be a journey to claim Siachen by the Indian people. Indian Army will escort a team of people to the Saltoro Ridge in the region on September 19.

The 22-day excursion is the first in a series of initiatives to promote tourism in the territory. American and French trekkers and the odd Bollywood celebrity have got a taste of the world's highest battlefield but this is the first time Indian civilians have been extended this privilege by the Army. About 20 people from across the country will be accompanied by a team of military cadets.

Three of them are from Mumbai: marketing professional Mukund Deodhar, management professor Charuhas Joshi and public relations consultant Balakrishna Pillai. All are avid mountaineers and trekkers who have already scaled heights higher than Siachen.
September 16, 2007
Source: Indiadaily.com

Travel and Transportation Infrastructure

Sector: Aviation

1. Air passenger traffic in India is to double in five years: ASSOCHAM

According to a recent report by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), air passenger traffic in India is expected to double in the next five years and triple in nine years from now.

The airline industry has every reason to rejoice as it is likely to grow by 10 per cent year on year in the next three years, stated the ASSOCHAM report. And in terms of cargo operations, the domestic and international traffic is projected to increase by 4.5 per cent and 12 per cent respectively over the next decade.
September 21, 2007
Source: Travel Biz Monitor

Sector: Railways
1. Heritage status for Kalka-Shimla rail track?
After Darjeeling toy train, the century-old Kalka-Shimla rail track may now be placed in the World Heritage list.

A UNESCO team of experts is examining the 104-year-old rail track in Himachal Pradesh to decide whether to grant it World Heritage status.

The two-member team, headed by Robert Lee, will study the 96 km track, that passes through 103 tunnels, for the next three days and submit its report.

Indian Railways hopes to get heritage status for the track like the Darjeeling railway line and boost its earnings from tourism.

"Besides the railway track, tunnels, bridges and railway stations, we are minutely studying all the relics along the railway track," Lee said..

"We will also interact with the Indian government," he added.

The British built the Kalka-Shimla rail track and the first train was flagged off by Lord Curzon in 1903.

The track rises from 650 metres to almost 2,100 metres and passes through 103 tunnels, 969 bridges, 919 curves and 18 railway stations during its journey.
September 13, 2007
Source: MSN India

Sector: Hotels and Restaurants

1. ITC eyes Fortune in rural hotels

Cigarette-to-hotels major ITC plans to set up around 15 three-star hotels over the next three years in rural areas where it has retail hubs. To be christened Fortune Lodges, the hotels will have around 25 rooms and cater to business and leisure travellers.

The rooms will be priced between Rs 1,000 and Rs 1,400, based on the location, and will provide a basic room and dining service, gym and a wi-fi connection.

The overall plan is to cater to the rural tourism market, which the company believes has huge potential. “We believe that rural India is one of the major experiences any tourist can have. There is a lot of demand in these areas and since we already have a presence in some key villages, we plan to capture the traffic here,” said a senior executive of ITC-Welcomgroup Hotels. He added that the objective was to provide safe, hygienic and comfortable accommodation to executives who travel to the hinterland for work. “With many companies heading to rural India, we believe this proposition will work," he said.

The lodges will be built on the premises of its rural retail hubs called Choupal Sagar. The hubs are typically spread over 8 acres to 10 acres and have enough land to spare for a hotel. The first Fortune Lodge will come up at a Choupal Sagar at Sehore, nearly 38 km from Bhopal, capital of Madhya Pradesh.

At present, the company has 18 Choupal Saagar in three states — Madhya Pradesh, Uttar Pradesh and Maharashtra. Each Choupal Saagar caters to around 200 villages. The construction of eight Choupal Saagar in these three states are in advanced stages

Fortune Lodges will be classified under the three-star category and will cost the company Rs 2-2.5 crore each with ITC planning to invest between Rs 8 lakh and Rs 10 lakh per room.
ITC runs 75 hotels across the country under its Luxury Collection, WelcomHotels, WelcomHeritage and Fortune Hotels brands. At present, the Fortune chain has 30 hotels under the brands — Select, Park, Inn, Resorts and Residences.
September 22, 2007
Source: Business Standard

2. Karnataka to focus on home stays
In a bid to boost tourism in the State, the Karnataka Government plans to focus on home stays by offering accommodation facilities for tourists at heritage houses, traditional houses and farmhouses. According to Dr C Somasekhara, Director, Karnataka Tourism, the State's aim is to register 1,500 home stays across the state by the next financial year.

"Considering that home-stays qualify as non-commercial activity, those offering their homes as home stay options for tourists are exempted from taxes, thereby making it an economically viable option for both, those offering it as well as, those availing of it," said Somasekhara. Besides, it works out to be a viable option for the State as well. "1,500 home-stays work out to 7,500 additional rooms for tourists, without having to invest in any more hotels," he explains.
The plan is to put up the names and addresses of the home stays on the State Government's website.

Karnataka Tourism is now keen on promoting its rich heritage houses, traditional houses and farm houses as home stay options. "Tourists, especially foreigners visiting Karnataka, will prefer to stay in places which are unique and at the same time, within their budgets. Besides, our home stays are eco-friendly," maintained Somasekhara, as he went on to add that home stays have become a feasible alternative to lodges and also provide a source of income in the rural areas.

According official sources, around 5.5 lakh international tourists and over 27.5 lakh domestic tourists visited Karnataka last year. This year, the State Government has made a budgetary allocation of Rs 148 crore for development of tourism, particularly in terms of improvement of infrastructure.
September 18, 2007
Source: Travel Biz Monitor

Niche Tourism

1. Ayurveda: A gold mine for India
The medical tourism market in India was estimated at US$ 330 million in 2004 and it will be US$ 2 billion by 2012 as per estimates by the Indian tourism ministry.

This estimate is based on international tourist arrivals for heart surgery, bypass operations and other major treatment at India's high-tech hospitals. The ayurveda medical tourism, which will reach every village in India without any hi-tech hospitals, is thereby not included in the above estimate.

According World Health Organisation, chronic diseases are the major cause of death and disability worldwide, and increasingly affect people from developing as well as developed countries. This reflects a significant change in diet habits, physical activity levels worldwide as a result of industrialisation, urbanisation, economic development and increasing globalisation of food market. An estimated 177 million people are affected by diabetes. Two-thirds live in the developing world. More than one billion adults worldwide are overweight, and at least 300 million of these are clinically obese. People worldwide are consuming more foods that are energy-dense - high in sugar and/or saturated fats - or excessively salty.

The scientific evidence is strong that a change in dietary habits and physical activity can powerfully influence several of these risk factors in populations. Heart attacks and strokes kill about 12 million people every year. In addition, 3.9 million people die annually from hypertensive and other heart conditions. Up to 80 per cent of cases of coronary heart disease, 90 per cent of type 2 diabetes cases, and one-third of cancers can be avoided by changing to a healthier diet, increasing physical activity and stopping smoking. Established scientific evidence suggests there are major health benefits in eating more fruit and vegetables, as well as nuts and whole grains, daily physical activity, moving from saturated animal fats to unsaturated vegetable oil-based fats, cutting the amount of fatty, salty and sugary foods in the diet and maintaining a normal body weight.

Ayurveda can help these patients. But how to help them. They need first a consultation with a doctor, who is specialised in that field. Only after due consultation a treatment can be planned. There is no efficient system to satisfy this demand. Such a system is now for the first time implemented in www.ayurveda-portal.com where a panel of doctors is available for customers worldwide to speak to individually. Joseph Kaduthanam, managing director, Aymex Services, who had initiated ayurveda medical tourism in 1985, has developed this portal. "It is high time the Government of India and the tourism department promote ayurveda medical tourism to villages of India, by offering financial help to ayurveda doctors to improve facilities in their hospitals and resorts to attract guests from all over the world. This would improve employment opportunities in Indian villages and would generate more revenue than medical tourism to hi-tech hospitals", feels Kaduthanam, who was recently honoured as the brand ambassador of ayurveda by the Ayurveda Hospital Management Association.

The ayurveda portal has several functions like consultation facilities with specialised panel of doctors, education on ayurveda: its history, principles - vata, pita, kapha theory, various treatment methods and herbal plants used, search facility on ayurveda hospitals, resorts, online instant booking and payment gateway facilities and a global ayurveda directory. This portal is linked to more than 1,500 travel agents, 2,000 yoga centres, to promote ayurveda medical tourism to India. It also gives links to more than 3,000 organic bio-shops worldwide, so that patients after an ayurveda treatment can continue their diet.
September 18, 2007
Source: Indian Express

Policy

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Service providers

1. ITH to promote travel to Chandigarh
International Travel House (ITH), an associate company of ITC Ltd, will focus on travel destinations in Chandigarh and neighbouring areas in Himachal Pradesh, Punjab and Haryana. ITH brought its sales and marketing teams from across India Saturday to understand the market in Chandigarh and Punjab.

'We want to market this beautiful city to tourists who can also make short trips to nearby areas in Himachal Pradesh, Punjab and Haryana. The city has vast potential for tourism,' ITH managing director Anil Kumar Bhandari said.
ITH, which opened its first branch office for the region here Saturday, will be looking at inbound and outbound tourists from Chandigarh.

'Chandigarh is making progress in several fields - entertainment, information technology, business and health. We foresee a lot of tourism potential here,' Bhandari said.

ITH senior vice president Jehangir J Ghadiali said that the tourism scene in the country was set for a change. 'With more hotels being constructed and availability of more rooms, travelling will become cheaper in India,' he said. ITH, which did a business of Rs.5.81 billion last fiscal, is expecting a growth of 35 percent this year.

'We are offering a one-stop shop for all kinds of travel needs and plans. This is what people want now,' said Bhandari.
September 22, 2007
Source: IANS Via Yahoo

2. ITIL to develop tourism SEZ
To raise Rs 1,000 crore through an IPO; Announces tie-up with three properties in Jammu & Kashmir; To create cruise terminals in Gujarat and Maharashtra.

In a bid to tap the booming hospitality and tourism segment, newly formed tourism infrastructure company, Indian Tourism Infrastructure (ITIL) has drawn up ambitious plans. The company plans to create two tourism SEZs in Manadangarh and Sindhudurg in Maharashtra. ITIL has also tied up with three properties in Jammu & Kashmir and will launch its own taxi fleet, apart from tapping the lucrative medical tourism segment. The amount will be raised through an IPO in mid-2008 and will target the US, followed by the UK and Indian markets.

Each SEZ will be spread over 1,000 acres of land and will have an international standard convention centre and 30 hotels with a total of 20,000 rooms. The group has also applied for permission to run a casino. ITIL has also bought 730 acres of land at Lonavala and has drawn up a blueprint to create a second 'Venice' which will be a township with canals, and boats will be the only means of transportation.

The group has tied up with three properties in Jammu & Kashmir under management contract and these will be managed under their hotel brand - ITIL Silver Star Hotel, Srinagar; ITIL Hilltop Hotel, Gulmarg, and ITIL Woodstock Hotel, Pahalgam.

Discussing his expansion plans, Jyotin Doshi, chairman, ITIL says, "We are negotiating with various property owners to develop their properties. We hope to run 40 properties under our brand in a year's time, with three hotels coming up every month." The group is focussing on cities which have good potential to attract the tourists but lack infrastructure. These include Himachal Pradesh, Uttaranchal Kerala, Karnataka, north east India as well as properties in Kashmir.

It also plans to ramp up its taxi cum car rental services and increase the fleet to 1,000 cars. The cars are already plying in Srinagar, Delhi, Bangalore and Kochi. Apart from this, they also plan to create cruise terminals in collaboration with the Gujarat and Maharashtra governments. One of the sites marked out for this project is in Jamnagar. On the anvil are also private helipads and jet strips at four sites in the country which would accommodate a 20 seater plane. With its travel company- Gem Tours and Travels - the company will venture into medical tourism
September
Source: Indian Express

Travel ecommerce

1. Air travel becomes paperless as e-ticketing takes off

Airlines in India are in a rush to go paperless. The International Air Transport Association (IATA), a worldwide body representing 240 airlines and 94 per cent of global air traffic, has declared that every ticket issued through its Billing and Settlement Plan — which facilitates transactions between airlines and travel agents — will be electronic by May 31, 2008.
Judging by latest trends, airlines in India are quickly on their way to making ticketing fully electronic even before the end of the year.

Electronic ticketing, or ‘e-ticketing,’ gives travel agents as well as online travel portals direct access to an airline’s reservation database. Web ticketing also allows consumers to directly make their reservations through an airline’s website from their own homes, without the hassle of dealing with paper coupons or making a trip to the office of an airline or agent. The technology delivers both economic and logistic incentives for consumers; yet, it also brings with it areas of caution that airlines, passengers, agents and airport authorities need to be aware of.

Over the last three years, the share of electronic tickets globally has increased from 16 per cent in 2004 to as much as 84 per cent today. In India, only 47 per cent of all bookings were done electronically just 12 months ago. Now, according to IATA, the figure has risen to 80 per cent. “India is well on the way to achieving the 100 per cent target,” says Lorne Riley, an IATA representative based in Geneva. “We have no concerns at all regarding next year’s deadline, if you look at how India is doing compared to other countries in the region” .

Sharp growth
For state-carrier Indian Airlines, the share of e-ticketing had sharply risen to around 60 per cent of their total reservations since the facility was introduced last year. For private carriers, the trend is all the more evident.

Jet Airways reports more than 80 per cent electronic reservations, while Kingfisher records close to 100 per cent electronic bookings. Indian Airlines’ figures are also slated to increase once a revamp of the current reservation system — the system will be integrated with that of Air India following the merger — is completed.

Air Deccan, the first airline in India to establish a completely web-enabled reservation system, records around 40 per cent direct online reservations through its website alone, besides through the travel agent system. According to Pratyasha Singh, an Air Deccan representative, electronic ticketing has played “a significant role” in widening the airline’s consumer base.

In international sectors out of India, ticketing is largely done electronically, but only through travel agents and not directly through websites. Indian consumers still prefer to go through agents while booking international tickets. For instance, for flights out of India, Singapore Airlines records close to 100 per cent electronic reservations, but only around one per cent is done outside the travel agent system, directly on the web.

The reasons are two-fold: Higher costs involved in international travel make passengers more wary of booking tickets electronically through their credit cards, and credit card limits are another limiting factor. A second reason is the increasingly complicated and long-drawn procedures for acquiring visas.

“At the moment, people have not really switched over to the web for international travel,” confirms Indumathi Venugopal, director, Pegasus Travels. “While lack of availability is a factor, it is largely due to the complications in international travel such as the process of getting visas from consulates. For instance, for Malaysia there is a need to get immigration clearance even during the process of getting a ticket.”

The increasing trend of web ticketing has however been significant enough to force travel agents to diversify their business plans. “Travel agents are shifting more to value-added services, like visa application, tourism packages for groups and travel insurance,” Ms. Venugopal says. “Agents cannot focus on ticketing alone as they once did.”

Security concerns
How will this increasing surge for electronic ticketing ultimately impact air travel for passengers? D. Sudhakara Reddy, president, Air Passengers Association of India, believes that while technology will improve access to travel as well as costs for Indian consumers, there are a number of security issues that are yet to be answered. “It is true that fares are becoming significantly cheaper, especially when you book through the website of an airline,” Mr. Reddy says. “There are also a number of search engines like Yatra.com, Makemytrip.com and Sprice.com that list all available fares and save you the hassle of making ten different calls to agents or airlines, though they often charge three to seven per cent extra on the fare.”

Mr. Reddy however cautions that the benefits of the technology come with certain caveats. He says that there is a need for tighter security systems in Indian airports in verifying purchases of e-tickets, as they are in the West. “For e-tickets, passengers are supposed to carry their identity card with a photograph,” Mr. Reddy says. “Many people do not, and I have personally observed that airport security is not checking up on this consistently. You are allowing anybody and everybody to go in, so this is a very dangerous thing.”
September 15, 2007
Source: The Hindu

Events
1. PATA Gold Award for Kerala Tourism
Kerala Tourism once again hogged the limelight by bagging two gold awards in the culture and brochure categories respectively, of the prestigious Pacific Asia Travel Association's (PATA) 2007 awards.

Aranmula, which won the award in the culture category for its various renowned cultural centres, is among the three villages in India selected for implementing the Endogenous Tourism Project - a joint venture of the United Nations Development Programme (UNDP) and the Union government.

The award-winning brochures, a four-set series, showcase the renowned destinations of Kumarakom, Thekkady, Munnar and Wayanad. Designed and conceptualised by Stark Communications, the brochures highlight experiential holidays at these destinations.

Kodiyeri Balakrishnan, minister for tourism, attributed these awards to Kerala Tourism's sustainable tourism policy and strong marketing strategies.

The special congratulatory message to the Department of Tourism from PATA lauded the achievement that will "help provide the chance for new ideas and products to stand out and be recognised, thus contributing to the development of the tourism industry."

"These recognitions are a real morale booster for us. This would not only inspire us to perform better but would also set a benchmark for all our future plans and endeavours", said an upbeat Dr Venu V, secretary, Kerala Tourism
September 18, 2007
Source: Express Travel World

Research and Market reports

1. Southern hospitality, the present and the future

"Bangalore will have 17,300 rooms coming up in the city in the next five years. With a lot of international players coming in, travellers will have more choice," stated JP Menon, general manager, St Mark's Hotel at the Bangalore chapter of The Hotelex India 2007 held at The Windsor Sheraton on August 17, 2007. The topic of discussion was 'Hotel business in South India - is it different from the rest of the world?' with Varun Sharma, general manager, Golden Palms Hotel and Spa, Mohan Kumar, general manager Taj West End and J P Menon, general manager, St Mark's Hotel as the key speakers.

According to Kumar, post-liberalisation, south India saw a huge wave of domestic and international travellers flocking to the region. "Tourism was never important in India in the early years. Pre-liberalisation, tourism in India was totally Delhi centric. Post liberalisation, the burgeoning IT sector in the south led to a great demand for hotel rooms," said Kumar. Chennai, where the automobile sector is booming, is expecting an addition of 3,500 rooms in the next three years and Hyderabad will see around 2,000 rooms being added on to its inventory in the near future. With Kochi growing as an IT and ITES hub, Kerala would also see phenomenal investments taking place in the hospitality sector. Sharma felt that medical tourism was another emerging segment in south India. "South India accounts for 74 per cent of all the medical tourists coming to India, with Karnataka alone registering 8,000 medical tourists. The medical tourists get their treatment done from the best hospitals and stay at luxury hotels. The entire cost of treatment, including travel and accommodation would cost less than what they would have to pay in their respective countries. In the bargain, the local communities also benefit," explained Sharma. Another growing attraction was the emergence of world class spas in Southern India. "People have started considering spas as a necessity more than a luxury. Indian spas are a masterpiece worldwide and south India is a leader here. India has around 45 spas and most of them are located in Kerala," added Sharma.

The rigid inter-state road taxes levied by all the five southern states and the luxury taxes imposed at different level were cited as deterrents to the progress of tourism in the southern states. "We also don't have an organised market to address the media. Are voices are not heard by the government," said Kumar. Though the southern states have the maximum number of hotel management institutes, the talent drain is huge with nearly 60 per cent of students passing out from the institutes going abroad in search of better prospects after a few years in the industry. South India has also done very little to attract MICE customers. "We lag behind in the world-class convention centers which our neighbouring countries like Thailand, Malaysia and Singapore offer," added Kumar.

However the fact that south India remains a year- round destination and is a booming market for investors ensures that the region remains in vogue and has the potential to lead the tourism charts.
September
Source: Express Hospitality

2. Kerala studies tourism impact

Kerala Tourism (KT) has launched a year-long study to find out the impact of tourism on ecology and infrastructure. The study comes in the wake of its initiative to promote eco-tourism in a big way.

The Responsible Tourism (RT) initiative is being implemented on a pilot basis in four destinations -- Kovalam, Kumarakom, Thekkady and Wayanad.

"The state is also set to host the second international conference on responsible tourism in association with the International Centre for Responsible Tourism (ICRT), India," Venu V, secretary, Kerala Tourism, said.

After promoting south Kerala as a tourist destination, KT is now focussing on north Kerala. Branded Wake Up to Malabar, KT is planning to promote the Malabar region comprising Malappuram, Kozhikode, Wayanad, Kannur and Kasargod. "South Kerala has matured as a tourist destination. So, we are now looking at north Kerala," added Venu.

KT has also launched an e-research initiative, Synergy Quest, aimed at collecting feedback from the toursim trade across the world to fine-tune marketing strategies to ensure that every promotional venture gave returns.

"Such initiatives have ensured that the state recorded a 25.89% increase during the first quarter this year over the corresponding quarter in the previous year in foreign tourist arrivals. Domestic tourist arrivals increased 7.95%," Sanjay Kaul, director, Kerala Tourism, said.
September 20, 2007
Source: Business Standard via MSN India

3. Rising rupee hurts tourism sector
The firming up of rupee has caught the travel business on the wrong foot. Even as India becomes a more expensive destination to visit for foreign travellers, the dream international holiday for Indians become more affordable. The erosion of the value of dollar will put the yields of many inbound travel companies under pressure.

Many of them had contracted agreements for group tours to India at rates pegged around the Rs 44 to a dollar level. “The actual realisation for most inbound tour operators will be around 10% less,” said Le assage to India managing director Arjun Sharma.

To mitigate the impact of a weak dollar, travel agency associations have already started lobbying with government for sops on the lines of what exporters are gaining.

Tour operators are now pricing their new packages for next year at 20% over and above last year’s levels. As the country becomes a more expensive destination to visit, many feel this will soften the arrival numbers. India attracted 4.25 million foreign tourists last year, growing at around 13% annually.

Most hotelliers have insulated themselves to the fluctuations in the currency rates by switching over to Rupee tarrif rates this year. With Rupee breaching the Rs 40-mark, more hotels are slated to hasten their move towards selling their room inventory quoting Rupee rates.

Another fall out is that outbound travel will become more attractive vis-vis domestic travel. “Outbound travel from India will become more affordable, with ground transport, hotel accomodation and shopping becoming marginally cheaper,” pointed out Mercury Travels vice chairman Ashwini Kakkar. Airlines may benefit from the dollar rate fluctuations but they are unlikely to pass this on to travellers said tour operators
September 21, 2007
Source: Economic Times

4. Foreign trips get cheaper as rupee hits 9-year high
The rupee is gaining strength day by day. The currency appreciated further hitting a high of 39.85 against a weakening dollar on the back of fresh capital inflows and weakness in dollar overseas.

The strong rupee brings good news for imported products like electronics and for people traveling abroad. But the IT sector and exports have been bearing the brunt.

A strong rupee brings with it a lot of advantages, especially, if you are planning a holiday abroad. Travel agents say that a 4 day trip to South East Asian countries like Singapore or Malaysia could get cheaper by Rs 5,000 to Rs 7000. “Foreign tourism is booming. And with rupee rising it will turn cheaper,” Veena Patil-Chairman and managing director, Kesari Tours
The rupee is at its strongest against the dollar in about nine-years. Experts are betting on the rupee becoming even stronger in the coming months.

Anup Maheshwari, Senior Fund Manager, DSP Merrill Lynch “The long term trend shows that the rupee will appreciate further. Right from 1992-2002 it depreciated against the dollar by about 5 per cent per annum. Since 2002 that trend has flipped over and we expect a 5 per cent appreciation scenario to happen on a per annum basis in the next couple of years The rising rupee is also good news for the stock markets. If the rupee continues to gain against the dollar, foreign institutional investors or FIIs will find investing in India even more attractive as their dollar returns will rise even with steady rupee returns.
September 21, 2007
Source: CNN-IBN

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