UP rape incidents can effect tourism, foreign exchange earnings: Assocham

Inbound overseas tourists are sensitive to unsavoury incidents, which could upset FTAs, according to Assocham

The recent incidents of rape and law and order in Uttar Pradesh have the potential to adversely impact tourism and effect foreign exchange earnings from the sector.

Nearly half of the annual foreign tourist arrival in India is cornered by the Taj Mahal (Agra, UP), the Golden Temple (Amritsar, Punjab), Khajuraho (Madhya Pradesh) and Jaipur (Rajasthan). However the recent unfortunate incidents in UP, that had even reverberated in the global media and found mention by the United Nations echelon, will hurt tourist flow to Taj Mahal, Assocham said.

Of the $18-19 billion which foreign exchange earned through Foreign Tourists Arrivals (FTAs) in India, Taj Mahal generates $7- 8 billion, corresponding to 40-45 per cent of the total foreign exchange share, Assocham secretary general D S Rawat said, while releasing a paper on the subject. Inbound overseas tourists are sensitive to unsavoury incidents, which could upset FTAs, he added..

Rawat added since Taj Mahal was popular with female foreign tourists, the UP government should take steps to give positive signals to the world that women are safe here.

The silver lining is these incidents had occurred during the lean season, when the foreign tourist arrivals come down due to intense summer heat in most parts of India, particularly  the north.

Still, about 450,000 FTAs are recorded in June, while north-bound FTAs are lesser in number. The damage arising of adverse publicity resulting from these unfortunate incidents could at best be limited because of the lean period, the paper claimed.

Assocham had suggested taking immediate confidence-building measures, before the September-October period, when FTAs start picking up again till December-January. Hotels, restaurants, transport operators and airlines do brisk business during this season.

“In fact, India should aim at doubling our FTAs in the next five years and augment foreign exchange earnings to $50 billion per annum,” Rawat noted.