Mohit Rathod – Mumbai
The recent withdrawal of the UK from the European Union (EU), commonly known as Brexit, has caused a stir in the travel and tourism sector. Brexit has led to a drop in the value of the Pound, which is considered a positive indicator for travellers, as it will make travelling cheaper. Additionally, popularity of the UK among Indian travellers is expected to create a surge in outbound travel to the UK.
Sharat Dhall, president, Yatra.com, informed, “Brexit has resulted in a big drop in the value of the Pound and if this trend remains, then we could see a surge in leisure tourism to Britain. However, it is too early to establish that this drop in the Pound will be sustained and we are yet to see any surge in travel bookings to the UK. A drop in the Pound could also result in an increase in students from India choosing the UK as a destination as it will make education significantly cheaper there.”
Guldeep Singh Sahni, president, Outbound Tour Operators Association of India (OTOAI), sees it as a momentary effect, which is expected to remain for a long term. He said, “We will have to wait and evaluate the situation carefully, and not jump to conclusions. However, drop in the Pound’s value will boost outbound tourism to the UK. Additionally, it is also expected to improve immigration numbers.”
The development, however, may have its fallout on other aspects of the economy. But to eliminate the negativity of its exit from EU, Britain is anticipated to promote travel and tourism.
“The current volatility will not impact our core business, however we will witness wide spreads in the currency trade for the short term and expect that the market will settle down,” stated Madhavan Menon, chairman and managing director, Thomas Cook India.
Although Brexit has invited varied opinions from the industry, a large part acknowledges that it will facilitate cheaper travel for Indians. “Inbound tourism from the UK will get affected, however outbound will definitely grow. For those Indians who want to take the opportunity of going there, this is the right time,” opined Manoj Gursahani, founder and chairman, Travelmartindia.com.
