Indian demand for China shows signs of slowing down

CHINA is experiencing a stagnation in the growth of Indian visitor numbers this year, due to an unfavourable currency exchange rate and increasing costs.

According to data from the China National Tourist Office (CNTO), 245,901 Indians visited China during January-May 2012, an increase of just 0.72 per cent over the same period in 2011. China is targeting 610,000 arrivals from India this year, compared to 606,500 in 2011.

“We expect only a marginal increase in the number of Indian visitors to mainland China this year. With the rupee on a downhill and the yuan on an upward spiral, we have to take this into account,” said CNTO in a statement.

Sajan Gupta, director, Vayu Seva Tours Kolkata said: “Hotel rates and transportation costs (in China) are up with a stronger yuan and US dollar, so the nett cost of tour packages to China have risen, making it less attractive for the outbound tourist.”

Even with the dampened forecast, CNTO has ramped up this year’s promotional budget for the Indian market, and is actively targeting the travel trade in Bangalore, Kolkata, New Delhi and Mumbai.

Rajendra Dhumma, director, Classis Travel & Tours Mumbai, said: “Roadshows and promotions should provide inputs about language, belief and customs, cultural values and attitudes, the Chinese socio-economic environment, social etiquette and protocol; as 75 per cent of Indian travellers to China travel for business.”

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