Monthly Archives: April 2012

Is the Spending Propensity of Foreign Tourists Travelling to India Declining over Time?

Is the Spending Propensity of Foreign Tourists Travelling to India Declining over Time?

By Dripto Mukhopadhyay

Foreign exchange earnings (FEE) from tourism activities contribute a large proportion of total FEE in India. According to Tourism Statistics of India 2010, a Ministry of Tourism, Government of India, FEE from tourism activities during 2009-10 has gone up by more than 18%. Certainly this is a boosting factor for Indian tourism industry. This high growth in FEE also corroborates the focus of tourism ministry to increase number of foreign tourist arrivals to the country. More or less, one needs to admit that they are certainly successful to a large extent though a setback was observed during the recent global recession.

This article tries to capture a simple yet important point from policy point of view regarding focusing foreign tourists as a major means of boosting Indian tourism industry as well as a means for earning foreign exchange. The analysis in this article is simple which tried to establish or examine whether the increasing trend as observed apparently does really as beneficial as being envisaged. To keep the analysis simple from point of Continue reading