The document summarizes the effects of India's 2016 demonetization on the country's tourism industry. It notes that while the tourism sector experienced initial difficulties due to cash shortages and canceled bookings, it was able to adapt to digital payments over time. One year after demonetization, the tourism industry in India was able to recover, with domestic tourism growing despite initial setbacks from the policy change. The industry demonstrated resilience in the face of a disruption by embracing digitization.

1. THE CRUNCH OF DEMONETISATION ON
TOURISM INDUSTRY IN INDIA: A YEAR REVIEW
Rashmiranjan Choudhury
Research Scholar
North-Eastern Hill University

2. Tourism Industry & Indian Economy
• India is the world’s 7th largest tourism economy in
terms of GDP. (WTTC,2017)
• Travel & Tourism generated INR 14.1 trillion in 2016, the
sum is equivalent to 9.6% of India’s GDP.
• The industry supported 40.3 million jobs in 2016, which
is 9.3% of the country’s total jobs. (2nd in world rank)
• 88% of sector’s contribution in predominated by
domestic travel.
• India received only 9 million international arrivals in
2016 (world rank 40).

3. Tourism Industry & Indian Economy
World Travel and Tourism Council, 2017

4. Demonetisation from angle of Tourism
• RBI allowed exchange of up to INR 5,000 per
week for foreign tourists visiting India.
• At international airports old currency
transaction till 11th November 2016.
• Rail/Air ticket booking till 24 November 2017.
• Date and deadlines for exchange:
– Indians abroad: 31st March 2017
– Non Resident Indians: 30th June 2017

5. OBJECTIVES
• To study about the demonetisation effects on
tourism industry in India and adaptation of
digital economy.
• To do a complete year review of tourism
industry after demonetisation.

6. METHODOLOGY OF THE STUDY
The study is based on qualitative research
approach.
Data source:
Archives of journals, Magazines, media
contents, official reports of Government and
other organisations, periodicals and from
different web sources. Content analysis and
personal observation also carried out for the
research work.

7. Demonetisation will affect Tourism#
• Postpone of tour.
• Change in travel plan/medium.
• Cancellation of bookings in hotel.
• Rural tourism, ecotourism slowdown.
• Quick fall in unorganised & informal sector.
• Traditional product exports halted for time
being.
(# Predictions done in literatures reviewed, before 1st Jan 2017)

8. Digitisation, Adaptation and Challenges
• Electronic information services (e-marketing, e-
booking, electronic payment).
• Use of digital payment system raised (UPI,NEFT, RTGS,
BHIM, Mobile payment, PayTM etc).
• The market and consumer should accept the digital
transaction process.
• Cyber Safety and security issues.
• Though users increased, awareness is not spread over.

9. FINDINGS
• Sudden raise in rail ticket bookings, in 1AC booking
raised to 1000 percent. (Caped 1AC & 2AC)
• Air ticket bought through old currency ‘Strictly Non
refundable’. (DGCA)
• Restaurant sector mostly affected by currency hit.
• Kerala tourism experienced a downfall in tourist count ,
approximately 17.7% and 8.7% in domestic and foreign.
• Rajasthan tourism picked up the growth after
demonetisation, increased tourist visits.(News of Rajasthan, 2016)
• Online booking went high to 60-70%. (Indian Express,2016)

10. Tourism: A Year Review
India Tourism Statistics, Ministry of Tourism, GOI, 2017

11. CONCLUSION
• Strategic planning and decision were not made before
the massive step.
• Altered notifications confused the whole industry.
• Domestic tourism industry and unorganised/informal
sectors affected by demonetisation.
• Lack of promotion and technological support shrink the
digitisation process in tourism economy.
• But apart from all other odd tourism grow in India.
• In other words overall it can be stated:
“Tourism beat Demonetisation”

12. THANK YOU
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