PM Modi Appeal May Hit Travel Industry
India’s travel industry is bracing for pressure after Prime Minister Narendra Modi urged citizens to avoid unnecessary foreign travel, with operators warning that overseas holiday bookings could weaken during the peak summer season.
Modi Foreign Travel Appeal Hits Bookings
The appeal comes at a sensitive time for India’s outbound travel market, as April to June is one of the busiest periods for overseas holidays. Families often travel to destinations in Europe, Australia and Southeast Asia during school vacations.
Travel industry representatives say overseas travel inquiries have already fallen by around 10% to 15% due to inflation, higher airfares and global uncertainty. Modi’s appeal could further delay fresh bookings as some travellers may postpone foreign holidays.
Oil Prices And Airfares Add Pressure
The travel slowdown is linked to rising crude oil prices and fuel costs following the West Asia conflict. Higher aviation fuel prices have pushed up airfares, making international travel more expensive for Indian tourists.
Modi has also urged citizens to reduce fuel use and avoid buying gold for a year as part of efforts to reduce pressure on India’s import bill. India remains heavily dependent on imported crude oil and gold, making foreign exchange conservation a major concern during global instability.
Travel Stocks Face Market Impact
The appeal has also weighed on travel and aviation-related stocks, including online travel platforms, airlines and holiday companies. Investors are concerned that weaker outbound demand could reduce revenue during an important travel season.
Domestic Tourism May Gain Momentum
Industry players may now push domestic tourism more aggressively, although domestic travel usually offers lower margins than international packages. Travel bodies have also urged the government to promote inbound tourism to balance foreign exchange outflows and support the sector.
