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Travel News, February, 2006

Tsunami & After

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More tourists arrive, but face hotel shortage
by Shreyasi Singh

     New Delhi: The Government of India is making all efforts to promote the country as one of the most preferred tourist destinations. But they are faced with the fact that adequate number of hotels are not available to accommodate them. Some hotel chains have even asked their regular corporate clients to stop travelling to Delhi for next few weeks. Industry experts say the problem should be tackled as soon as possible for a better International market in the future. "The "open sky policy" has given a boost to the arrivals at the International airports. The supply number of rooms in the metros and few tourist destination have not increased. But shortfall of rooms is pretty big and it needs to be tackled as soon as possible to give the right signals to the international market," said Alison Story, a tourist.

    India's foreign tourist arrivals rose 15.1 percent in January, compared to the corresponding time in the last year. Tourism industry boomed in the wake of a strong economy and growth in business and leisure travel. As per the data provided by Government India had 444,753 foreign visitors in January compared with 386,260 in the same month last year, while foreign exchange earnings rose 17 per cent to 632.43 million dollars. According to estimates, there are 130 hotels under active construction in various cities across the country. The areas of maximum development include the regions around New Delhi, the Capital of India. Industry experts predict that the average occupancy of Delhi hotels would be up by 30-35 per cent in 2006 from 60-65 per cent in 2004-2005. India, Asia's third-largest economy, is best known in the world tourist map as home to the Taj Mahal and is running an 'Incredible India' campaign across world capitals to woo tourists to its grand palaces, tiger safaris, ski slopes and golden beaches. It is also promoting its colourful villages as exotic holiday destinations where tourists can draw water from wells and churn butter in earthen pots. An estimated 3.4 million foreign travellers visited in 2004 and that number is expected to rise by 10 per cent a year helped by lower air fares and a boom in the economy. The peak holiday season in India falls between October and March. Palo Alto, California-based Norwest venture partners, estimates India's travel market will be worth about 40 billion dollars in 2006 and which may touch 50 billion mark by 2009, with revenues from foreign travellers in India quadrupling to 24 billion dollars by 2015.
-Feb 9, 2006




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