Financial Times

Indian arrivals fall as discounts end
Tourist arrivals in January-July 2005 rose 12.9 percent year-on-year(YoY) to 310,833 persons but there was a sharp drop in Indian visitors in June, probably because of the ending of discount package promotions.

The assassination of Foreign Minister Lakshman Kadirgamar and the subsequent tightening of security in the capital, with a visible military presence, may have a short term negative impact on tourist arrivals, brokers Asia Securities said. “With the recovery in resort-tourism being delayed longer than had been previously expected, we continue to prefer city hotels over resorts,” they said in a research report.

July 2005 tourist arrivals were up 12.3 percent YoY to 56,745 persons. However, Indian arrivals fell 11.7 percent YoY to 9,201 persons, most likely due to the ending of discount package promotions in June, the brokers said.

They noted a “slight recovery” in the traditional UK and German markets, with arrivals up 18 percent and 19.2 percent YoY to 10,944 and 4,503 persons, respectively. Strong growth in North American arrivals, more than double the previous year’s figure to 6,144 persons, may reflect continued inflows of aid workers, Asia Securities said.

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