Prime Minister Narendra Modi’s appeal urging citizens to prioritise domestic travel over foreign holidays and overseas weddings has triggered mixed reactions across India’s travel and tourism industry. While some stakeholders backed the focus on economic resilience and domestic tourism, others expressed concern over the potential impact on outbound travel demand and traveller sentiment.
The industry may now experience increased pressure to promote domestic tourism: Sunil Kumar, TAAI
The ongoing geopolitical tensions and war in the Middle East have created significant pressure on global oil supplies. In this context, the Prime Minister has urged citizens to conserve fuel consumption and use resources responsibly, so as to minimise the impact on everyday living and strengthen national resilience.
Equally important is the emphasis on conserving India’s foreign exchange reserves, says Sunil Kumar, President, TAAI. “Hon’ble Prime Minister’s recent call reflects two important national priorities. His message clearly encourages the reduction of avoidable forex outflows, particularly on overseas vacations, destination weddings, and similar discretionary international spending, which has witnessed substantial growth in recent years. His vision is directed towards ensuring that India remains economically strong and secure with healthy reserves. This development will undoubtedly impact our industry. Today, the sustainability of many travel agencies is increasingly dependent on tourism-related revenues, especially from outbound holidays, MICE movements, destination weddings, anniversaries, and family events overseas. Traditional ticketing revenues alone are no longer sufficient to sustain most agencies. Growth today comes from tourism, hospitality, visas, holidays, and allied travel services. The industry may now experience increased pressure to promote domestic tourism, where margins and revenues are comparatively lower. In addition, a large segment of domestic travellers prefers independent planning, reducing dependence on travel agencies.”
We must support the PM in the interest of national fuel security: Abbas Moiz, TAFI
Abbas Moiz, President, TAFI, feels that in the interest of national fuel security, we must fully support PM Modi’s initiative. “However, the travel industry is likely to face a lean period in the near term. The situation in West Asia has already dampened international travel out of India, mainly due to limited seat capacity. We remain hopeful that things will stabilise and return to normal soon,” he adds.
We are seeking an audience with the Prime Minister’s Office: Himanshu Patil, OTOAI
The Outbound Tour Operators Association of India (OTOAI) has issued a statement saying it stands firmly with the Government of India and the vision shared by the Prime Minister in this period of global uncertainty. For us, the country comes first—always. As responsible citizens and as representatives of the travel fraternity, we fully support every effort aimed at keeping India safe, strong and economically resilient.
However, Himanshu Patil, President, OTOAI, says, “At the same time, we must respectfully highlight that tourism is often the first casualty in any crisis. It is among the first sectors to be hit and, unfortunately, among the last to recover.” Prime Minister’s appeal to citizens to defer non-essential foreign travel and choose domestic tourism, made in the larger national interest amid concerns over fuel prices, foreign exchange and global disruptions, will naturally have a significant impact on the outbound travel community.
“While we cannot fully ascertain all the circumstances that led to this important national call, we recognise the seriousness of the situation and the need for collective responsibility. However, we are also deeply concerned about the livelihoods of thousands of travel professionals, tour operators, travel agents and allied service providers who depend on outbound tourism,” he says.
In light of this, OTOAI has initiated the process of seeking an audience with the Prime Minister’s Office to place before the government the concerns, challenges and practical realities of the travel trade. “We hope to arrive at a balanced and reasonable way forward that protects national interest while also safeguarding the people and businesses connected with our industry,” Patil adds.
“We stand in solidarity with our members and with every stakeholder of the tourism fraternity. We assure them that OTOAI will make every possible effort to represent their concerns responsibly and constructively. In the meantime, we urge everyone to stay united, undertake only necessary travel, travel responsibly, and continue to uphold the spirit of service, resilience and patriotism. These are difficult times, but with unity and understanding, we will overcome them together,” he says.
Should all international airlines stop operations for one year?
Harmandeep Singh Anand, MD, Jagsons Travels, asks a simple question: “Should all international airlines stop operations to and from India for one year? Since the announcement was made, the stock prices of many airlines would have tanked. The Indian aviation industry is in bad shape as it is due to the current crisis. The government would know better if this is such an emergency situation,” he adds.
This will be a temporary blip: Mahendra Vakharia
This is another twist in the tail, given the current situation, says Mahendra Vakharia, Co-Founder & Managing Director, Pathfinders Holidays. “Any announcement from the Prime Minister will have an immediate impact on that particular industry. But I am sure this announcement is more in line more to do with the current geopolitical situation and the shortage of crude oil and LPG, and the weakening rupee to dollar, leading to stress on the forex reserve of the country,” he says.
Moreover, the government has not yet increased the fuel price in the country for domestic consumption, in spite of the increase in crude price, which is also impacting the economy of the country. All in all, Vakharia believes this will be a temporary blip and eventually will settle.
Travel stocks have fallen: Manoj Saraf, Managing Director, Gainwell Travel
This announcement will have a far-reaching effect on our industry, says Manoj Saraf, Managing Director, Gainwell Travel. “There was a time when the PM’s request for the nation to tide over a problem was taken very seriously by the citizens, and we would see its impact right away. In the same way, as soon as these announcements were made, we saw all jewellery stocks fall, travel company stocks like Thomas Cook India are down by 5-6%, the airline stocks are down, and Interglobe stocks fell this morning. This will definitely see a fall in outbound travel other than essential travel as people opt for domestic instead. Destination weddings will also stay in India. People will be scared of doing destination weddings abroad. I think we will see its effect over the next 6 months at least. Airfares will come down,” he says.
We must also consider the larger picture – airlines could face losses: Guldeep Singh Sahni, Weldon Tours & Travels
Guldeep Singh Sahni, MD, Weldon Tours & Travels, feels that while it is important for a head of state to ask people to avoid unnecessary expenditure that causes forex outflow or depletion of imported resources, foreign travel is different. “If it is necessary for a businessman to travel, they will travel. Those who need to travel to visit their children overseas will also travel, as they should. Unnecessary travel should certainly be avoided. PM’s call will have some impact on outbound for some time. We will have to wait and watch. India can take measures to control its resources; if those resources deplete, there will be an impact. So, we should all play our part and act responsibly,” he says.
But, he adds, we must also consider the larger impact. “Airlines could face losses, reduce flights, and there could be fewer seats available even for people travelling into India. Once flights are cancelled, restoring them becomes very difficult. This could also impact employment in India. Therefore, we should look at the issue in a larger context,” he says.
All is fair in the name of nationalism: Pradeep Saboo, Guideline Travels Holidays
This could affect a percentage, says Pradeep Saboo, Director, Guideline Travels Holidays India, but it will definitely play on people’s minds. “All is fair in the name of nationalism. The PM will himself be travelling to the Netherlands, Sweden and Norway this week,” he laments.
Rahul Bhadana is a digital editor at TravTalk with experience spanning multiple content niches, with a strong focus on travel trade journalism and digital publishing. A graduate of Delhi University, his work covers editorial writing, content strategy and platform-led storytelling, supporting TravTalk’s digital growth and industry engagement. A technology enthusiast, he enjoys films, poetry and exploring new ideas across media and culture.