The short supply of new currency notes in the market after the demonetisation is likely to severely affect the tourism industry in Himachal Pradesh in the popular tourist season of Christmas and New Year.
The hoteliers and other stakeholders in tourism industry in Himachal Pradesh have been feeling the pinch of demonetisation severely as they have noticed a sharp fall in their business to the tune of 50-60 per cent ever since the old `500 and `1,000 were banned by the Government.
Adding to the woes of tourism industry in the hill state is the slow pace of liquidity into the market and the scare of Government agencies’ on the spending of the people.
Dinesh Gupta, a hotelier, who has business interest in Shimla and Solan, says that the cash crunch will mar the Christmas and New year Celebrations, and the hotel industry will have to bear the brunt throughout this season.
The hoteliers said there are hardly any advance booking for the peak tourist season in the last week of December and the first week of January. The tour operators have witnessed a steep decline in the number of queries for New Year. While the hoteliers claim that upto 60 per cent bookings in hotels had usually been made in the previous years, this year there is hardly any such booking.
Those in the tourism industry said that the big and expensive hotels are expected to suffer more, as the perception of Income Tax authorities keeping a vigil on the expenses of the people, may prevent people from resorting to extravagance.
Talking on the expected impact of decision of demonetisation, Sanjay Sood, President, Hotels and Restaurants Association of Northern India, said that the tourism industry is likely to take the pinch of cash crunch till March.
Mohinder Seth, President, Tourism Industry Stakeholders Association, said the industry is trying to meet the cash crises, but as people with spending capacity are concerned with cash woes, the New Year festivities are definitely going to be damp this year, from the business perspective.