Travel advisories make airlines, hotels see red

Five countries issue alert against travel to India.

Travel advisories issued by the US, the UK, New Zealand, Canada and Australia late Tuesday night have dampened spirits in the Indian hotel and airline industries, which were expecting things would look up in the festive season.

The local consulates of these five countries have issued travel alerts to their citizens, cautioning them about terror strikes during Indian festivals and other peak holiday periods.

These alerts are not expected to be lifted before January. “The Department of State reminds US citizens of the continued possibility of terrorist attacks throughout India and urges citizens to pay particular attention to their personal security during the Indian holiday season, which includes Hindu, Islamic, and other religious and secular holidays between October and January,”said a statement from the US consulate.

The five countries together account for over 35 per cent of annual foreign tourist arrivals to India, of which the US share is over 16 per cent.

The Australian government advisory said “terrorist attacks could occur at any time anywhere in India with little or no warning". The cautious approach stems from the fact that India has been subjected to two high-intensity terror strikes already this year, where at least 37 people lost their lives. Further, Indian security agencies have issued terror warnings to busy airports, railway stations and tourist spots frequented by foreigners.

Observers said the development might lead to cancellations in the hotel and tourism industry.

Rajji Rai, South Asia director of United Federation of Travel Agents Association, said the travel advisory would lead to a negative impact on inbound tourism. “In the past, such advisories have resulted in cancellation of bookings by foreign tourists. This is the peak travel season and cancelled bookings will have to be filled up by domestic tourists.”

Several companies operating popular hotel chains in India start accepting bookings for the peak November-December-January period after July. Many domestic hotel brands such Hotel Leela, Taj Hotels Resorts and Palaces and Oberoi were witnessing a favourable uptick in advance bookings.

K B Kachru, executive vice-president, South Asia, Carlson Hotels, said, "People who have made travel plans to India will tend to look at this more cautiously. There will be more anxiety and caution as has been the case whenever there has been an alert like this."

Although hotels operating in India have been raising their room tariffs since January, another 10-15 per cent increase was planned during the October-December period. Generally, room rates are the maximum during the final week of December and first week of January. While the share of domestic travellers staying in hotels has been rising, most luxury and premium hotels depend more on foreign tourists for a major part of their income.

“At Hyatt, it is our endeavour to ensure utmost security and comfort of our valued guests above everything else and we shall take into cognisance every contingency to protect their well being,” said Peter Fulton, managing director, Hyatt International, South West Asia.