Rupee fall renders overseas travel expensive for Indians

For vacationers who have already paid for packages, shortening the number of days would help cut expenses.
Image used for representational purpose only. (File Photo | Reuters)
Image used for representational purpose only. (File Photo | Reuters)

NEW DELHI: The steady fall in the value of Indian rupee this year against major currencies of the world has made imported goods more expensive, sent fuel prices soaring and cast a shadow on international travel plans.

Outbound travellers now have to shell out more – overall if packages or tickets haven’t already been booked, and for miscellaneous expenses in cases of packages already paid up. Business travel, as well as outbound tourism, has been steadily increasing, but the value of rupee is threatening to slow them down.

While the rupee’s depreciation against the US dollar has grabbed eyeballs the most due to the macroeconomic reasons, it has also fallen in value against currencies of countries that rank high on popular destinations among Indians tourists.

Dubai, Saudi Arabia, Bahrain, and Thailand are some such popular destinations beyond the United States, shows a study released early this year by CAPA India and Expedia. Travel to the US is primarily business-oriented and only 18 per cent Indians chose it as a tourist destination.

Top leisure destinations for Indians were Dubai, Thailand, France, Singapore and Malaysia, with the top five accounting for over 50 per cent of departures. And Indian travellers spend a significant amount of money abroad, estimated at $16.4 billion for 2016.

Business travel accounted for 26 per cent of outbound trips, while visiting friends and relatives, employment, education, pilgrimage and others accounted for the balance of 44 per cent.

But, over 2018, the rupee has steadily depreciated against the currencies of every country mentioned above. The sharpest depreciation was seen against the Thai Baht at 14.79 per cent since January 1, 2018, while the mildest was against the Euro, at 9.84 per cent. Middle-Eastern currencies like the UAE Dirham, Saudi Riyal and Bahraini Dinar have appreciated around 13-13.6 per cent against the rupee, while the Malaysian Ringgit and the Singapore Dollar have strengthened by more than 11 per cent.

This has driven travel and boarding costs up by more than 10 per cent to most popular destinations, even after discounts from travel agencies, said a Chennai travel agent, who said around a quarter of vacationers who have flown over the three months have requested changes in the packages as trips became more expensive. “Many have requested changes, mostly in accommodation. But, a few have cancelled,” the agent said.

Agents say the best way to beat the rupee’s impact on your travel budget is to readjust plans.

The best way to do so would be to modify plans for accommodations, reduce the duration of the vacation and look for cheaper flights.

For vacationers who have already paid for packages, shortening the number of days would help cut expenses.

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The New Indian Express
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