Effects of Demonetization on Tourism Industry
Here is how the demonetization move might affect your travel plans !
In a very bold and historic move by the Honorable Prime Minister of India, Shri Narendra Modi, all currency in denominations of INR 500 and INR 1,000 have ceased to be an illegal tender effective from the 9th of November 2016. This sudden announcement in the evening of 8th November 2016 has taken the entire nation by surprise. The demonetization move has been taken in view to curb black money, corruption and issues like circulation of fake currency and terror funding. Any big decision is bound to have its impact on several things. Below explained is a view on how the demonetization move might affect your travel plans.
For the Domestic travelers
If your in the middle of an ongoing domestic tour or are planning for one, you can be affected by the demonetization when it comes to spending on the tour. With high denomination notes of INR 500 and INR 1,000 not being accepted, your shopping list can get shorter and the hotel & taxi services might just not accept any illegal tender.
Therefore making your bookings online or using your cards or e-wallets to pay for hotels and taxis, can be an easy solution to making a successful trip.
For the Outbound travelers
Bookings through local agents, where you could have paid cash for the trip might not work out as paying for a foreign trip with notes of INR 500 and INR 1,000 would in most cases not be possible. Also currency exchange would not be that easy.
A good solution to this would be to book through the professional travel companies where you have options of a fully paid trip and payment options like cards and cheques.
For the Inbound travelers
Travelers coming to India from other countries during the months of November and December 2016 may have to face some issues due to the ongoing process of demonetization. Making payments with notes in the denomination of INR 500 and INR 1,000 would no longer be accepted at most places. Booking India tour packages online can be a good way to plan for an amazing holiday even in the midst of this entire process.
Well for all travelers, there is no need to panic. Exchanging the notes might be a little difficult up till the 24th of November but the queues for exchange of old currency might reduce later on. Though you wouldn’t want to spend time exchanging notes when you are supposed to go for relaxing or sight seeing. So plan your trips in a efficient manner and make use of digital payments and services like card payments so that you not only have a hassle free trip but can also maybe earn some cash-back!
You can keep in your notice that the Government of India has allowed certain places and institutions to accept the INR 500 and INR 1,000 notes up till the 24th of November 2016. These places include-
-Government Hospital and Chemists
-Railway ticket counters
-Airline ticket counters
-Currency exchange at international airports
-PSU run Petrol stations
-Government buss ticket counters
-Crematory and Burial grounds
Only time will tell how this move has benefited India. With high hopes and positivity, wish you Happy Journeys. Bon Voyage!