International arrivals not significantly impacted post Mumbai serial blasts

Mumbaikars' resilient attitude seems to be having a rub-off effect on foreign / international travellers visiting India and Mumbai on work or leisure. While the city bounced back the day after three serial bomb blasts shattered its peaceful atmosphere, the same was true for companies in the hospitality, travel and tourism sectors where it has been business as usual in the ensuing days.

A host of hotel and travel companies spoken to have confirmed that there has been no noticeable impact on their businesses and travellers – both international and domestic – are continuing with their plans of visiting Mumbai.

Dilip Puri, Managing director - India, Starwood Asia Pacific Hotels & Resorts, said that no travel advisories from various counsulates helped maintiain a status quo as far as international business for hotels and travel companies is concerned. 

“Hillary Clinton did not cancel her India visit which has helped instil confidence in a lot of other foreign travellers to continue with their travel plans. We are closely monitoring the situation with our Mumbai hotels and I must tell you that cancellations (if at all) are very insignificant as compared to what was witnessed earlier especially post the 26/11 terror attacks. We are seeing resilience in the Mumbai market and the recent blasts in Mumbai have had no impact on business travel in the city,” said Puri.

Ajay K Bakaya, executive director, Sarovar Hotel & Resorts is of the opinion that while the bomb blasts were very unfortunate, its impact on the hospitality and travel businesses isn't visible because it's non-peak season as far as leisure travel into the country is concerend. 

“Corporate business travel hasn't got impacted at all. Business in our Mumbai hotels is in tune with the current season. Our north Mumbai hotels are doing 70% occupancy with average room rates in the Rs 7,000 to Rs 7,500 range while it is Rs 8,500 for our south Mumbai hotels with occupancies at 75%. In fact, the rates being quoted are 5% to 7% higher as compared to the same period last year ad we are expecting the room rates to go up by another 7% in the winters,” said Bakaya.

Bakaya's observations find support from the the travel industry fraternity which feels that the terror incident happened in the leanest of the lean season and hence the impact was not so significant. 

“Business across the country generally starts picking up post September when corporates increase their frequency of travel which clearly shows up in the demand for hotel rooms in the September to March months. During monsoons, Mumbai gets a lot of travellers from Middle East who combine their travel with health / medical treatments which is unavoidable and they have to travel. Having said that, travel advisories are always an issue during such situations and it could possibly impact future bookings,” said Ashwini Kakkar, executive vice-chairman, Mercury Travels.

Besides, the serial bomb blasts were not at a high scale as compared to the 7/11 incident in 2006 or for that matter the 26/11 terror attacks in 2008 and hence travel advisories were not issued. 

Karan Anand, head – relationships and supplier management, Cox and Kings Ltd said, “The US and UK counsulates have told their citizens to be cautious instead of issuing advisories. The international travellers are not overly worried about the nature of terror activity happening these days and are taking their own decisions. No significant impact has been witnessed on foreign or for that matter domestic corporate travel.”