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News: Tourists splash cash in India

Fri, 07 Sep 07

New data has revealed that tourists are more inclined to splash their cash when visiting India than in many other popular destinations, reports Assetz Property...

According to a recent Federation of Indian Chambers of Commerce and Industry (FICCI) study, tourists in India spend an average of 65,085 rupees (£768), compared with 37,570 rupees (£444) for those heading to France.

These statistics may not impact directly upon the average buy to let investor, but the fact that India lacks enough cheap holiday accommodation to cope with increased demand is something to consider.

The FICCI study claims that as Bangalore grew into an IT mecca, hoteliers were desperate to maximise profits from travellers making their way to the eastern city. Spiralling prices have left a large number of visitors priced out and looking for a reasonably-priced alternative - potentially leaving an ideal gap in the market for someone with a second home to exploit.

Millions spent attracting tourists

Keen to capitalise and improve upon the hefty 45 per cent increase in tourism over the last two years, the Indian government has taken steps to maintain the tourist influx.  According to tourism and culture minister Ambika Soni, 691.9 million rupees have been spent attracting tourists over the current financial year, with more money set aside for future use.
 
Ms Soni explained:  'While priorities have not changed, the government is putting greater emphasis on development of infrastructure at important tourist destinations and to promote and publicise various tourism products of India within the country and abroad'.

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