Popular destinations are having a dent of around 65 per cent in business on account of shortage of cash despite Christmas and New Year holidays, said industry body Assocham.
With shortage of cash dampening consumer confidence, the ongoing tourism season is witnessing a significant dent and some of the popular destinations are reporting at least 65 per cent drop in bookings barring Goa that is catching up of late, said Assocham.
"According to the findings, travel trade has reported around 40-45 per cent drop in bookings for international tourists while business for the domestic travellers has gone down by well over 65 per cent," it said.
During October-November begins and picks up around Christmas and the New Year, with tourists making beeline to popular destinations in Rajasthan, Madhya Pradesh, Uttar Pradesh, Ahemdabad, Uttarakhand, Goa, Kerala while some enthusiasts too head for the hills for snowfall.
"There is also slowdown in the number of bookings from the international tourists, considering November, December and January being the peak season of international tourists' inflow," it added.
Assocham further said:" The drop in bookings has also resulted in lowering of the rates for hotels and airlines tickets to the extent of 30-35 per cent as compared to similar months of the previous year".
This year, the prospects of this peak season look subdued as fallout of the demonetisation drive.
"According to the industry insiders, a staggering fall of about 60-65 per cent in domestic bookings and around 40-45 per cent fall in international bookings has brought the travel and tourism and hospitality industry to standstill," it said.