The Indian tourism sector faces a challenging period ahead as the Indian government temporarily suspends visas for Canadian citizens, a key source market for the country. Industry experts anticipate a wave of cancellations and growing concerns about the overall sentiment.
According to statistics from the Ministry of Tourism, December marks the peak tourist season in India, while summer experiences lower tourist influx. Data from 2021 indicates that over 24 percent of all Canadian tourists visiting India chose December for their travels, while less than one percent ventured here in May.
Rajiv Mehra, the President of the Indian Association of Tour Operators (IATO), underscores the significance of Canada as a vital source market for India. He states that this development has substantial implications, particularly for tourists and people of Indian origin planning visits to reconnect with friends and relatives in India. This was anticipated to be a recovery year for the industry after the challenges faced in 2019-20.
Diplomatic relations between Canada and India have been strained due to factors like the killing of Hardeep Singh Nijjar and comments made by Prime Minister Justin Trudeau linking India to the murder. In response, India also halted visa services for Canadians last month.
IATO predicts a considerable decline of 30-40 percent in tourist arrivals compared to initial expectations for this financial year. Mehra highlights that those who intended to travel from December onwards are likely to be most affected. The repercussions are expected to extend to various segments of the hospitality sector, including hotels, event planners, marriage planners (as many Canadian citizens of Indian origin choose India for elaborate wedding ceremonies), and luxury car rental companies.
Ajay Prakash, a Board Member of the Federation of Associations in Indian Tourism and Hospitality (FAITH), expresses concern about the timing of the standoff with Canada, coinciding with the beginning of the inbound season. While precise figures are yet to be determined, the impact could affect all segments of the industry. He emphasizes the hope that sentiment in other key markets remains unaffected to prevent a cascading negative effect.
