DEMONETIZATION AND ITS EFFECT ON INDIAN TOURISM

Abstract

Recently cash ban of old currency of rupees 500 & 1000 (Demonetisation) is declared by Indian government which has great adverse impact on Indian
tourism industry. The travel and hospitality industries are facing tough time. Many foreign trips which sponsored by big brands largely done through cash
transactions are negatively affecting tourism industry and revenues. India’s hospitality industry has been severely affected as the hotels have lost a large
number of pay-in- cash-only clientele due to demonetization. Around 60 to70 percent drop in hotel bookings has been reported. An effort is made in this paper to critically analyze the positive and negative impacts of recent demonetization done by Indian government. Some Possible suggestions are also given to reduce the impact on Indian tourism industry.