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Monday, April 29, 2024

Indian tourism hit by rising travel costs

Tourists pass the passenger validation system at Suvarnabhumi airport.

Inbound tourism operators for the Indian market have voiced concerns over the slow processing of visa applications, high airfares and an increase in the outbound tax rate from India, as these factors could result in fewer visitors from the subcontinent, causing the Thai government to miss its target of 2 million this year.

Rajesh Nair, chief executive of Enchantive Asia, said despite high demand from the Indian market, there are several factors hindering their arrival.

The Indian government recently proposed increasing its Tax Collected at Source (TCS) for overseas tour packages, from 5% up to 20%, starting from July 1.

Mr Nair said the new tax rate would…

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