The impact of the Dubai crisis is expected to cast its spell on tourism fraternity not before January 2010 with airfares and hotel room rates expecting to fall by 10%-15%. However, no significant impact of the crisis will be felt till December since holiday makers have already booked their air travel and hotel accommodation.
Said Rajinder Rai, president, Travel Agents Association of India (TAAI), "Bookings for the Christmas and New Year Holiday Packages are isolated from the crisis since they were done well in advance (in October). The real impact of the crisis will be felt only by January when we expect prices to drop, making Dubai 20% cheaper than what it is today. Till then, we do not see any significant impact on the leisure and business travel or our business."
The average cost of a holiday in Dubai with airfare for two people works out to around Rs 35,000 for three nights/four days.
Neelu Singh, chief operating officer, Ezeego1.com, said, "With more than 100 flights from at least 10 destinations in India, per week, Dubai seems to be a very attractive place for shoppers, and it is a great weekend getaway. Further, the hotel rates in Dubai have come down as they are receiving fewer tourists from their other source markets. This has helped Indian travellers, as they are now getting attractive deals." She added, "Dubai has shown strong growth in terms of tourist traffic and the tourism industry is growing at a rapid pace. We feel that in the next one year, the meeting, incentive, conference and exhibition (MICE) business in Dubai will grow by at least 25%."
An email sent to the department of tourism and commerce marketing (DTCM) in Mumbai went unanswered.
However, SP Jain, chairman, Pride Hotels, and president, Hotel and Restaurant Association of Western India, said, "There will not be any significant rise in outbound traffic to Dubai due to the expected price crash. Indians, at present, see Dubai more as a business destination other than a tourist spot."
Around 4,93,318 Indian travelers visited Dubai in 2008 as compared to 410,821 in 2007, a growth of 20%. According to DTCM figures, there was an increase of 8.3% in the number of hotel guests in 2008 to Dubai compared with the previous year. The guest nights rose by 9.2% in 2008 to touch 22,421,067. However, the average length of stay went down to 2.98 compared with 7.3 in 2007. The total revenues rose 15.1% with the hotel establishments reporting revenues of AED15,268,545.
Similarly, the number of hotel establishment rooms increased by 17.9% to reach 50,457 in 2008.
SOURCE:
The Financial Express
Date - 4 December 2009
Edition - New Delhi
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