POSITIVE IMPACT: Use of credit cards at national monuments, rise in digital payments
NEGATIVE IMPACT: Cancellation and no show rate increased by 33% in fine dining restaurants, drop in inbound tourism; airline bookings drop, cancellations increase
Reservations in Delhi NCR restaurants have fallen by 28%, in Mumbai by 7% and in Bengaluru by 2%. The move has certainly weighed heavily on the tourism sector which was already running under stress due to the sharp escalation in pollution in India. Now, a significant fall can be seen in the number of inbound tourists visiting national monuments after the note ban. Almost all these places only accept cash, which leaves no option for these travelers, said Rajeev Kohli , Senior VP, Indian Association of Tour Operators, as per media sources.
“This ban has almost choked the tourism industry forcing many travelers to postpone or cancel travel,” he added.
Moreover, airlines are facing a noticeable drop in bookings and occupancy plus increase in cancellations. On Monday, SpiceJet CMD Ajay Singh told media that a visible impact can be seen on airlines due to demonetisation.
Popular tourist destinations for Indian travelers such as Thailand, Singapore, Malaysia, Maldives, Hawaii, Vietnam, Sri Lanka, Nepal, China, Indonesia and Dubai have all seen a drop in bookings. Scrapping of currency has resulted into huge uncertainty and disrupted transactions for smaller hotels, restaurants and food and beverage operations, which were earlier done in cash. Restaurant reservations dropped the highest in Delhi NCR, followed by Mumbai and Bengaluru, according to an EazyDiner report.