Dollar dictates low outbound numbers

KATHMANDU, SEP 21 - With the continued depreciation of the Nepali rupee against the US dollar in the past few months, large numbers of Nepali travelers have postponed their holiday plans abroad. Travel agencies dealing with the outbound segment reported a significant drop in the bookings for Nepali holidaymakers abroad this October-November season. October-November not only sees notable growth in inbound tourism, but also greater numbers of Nepali’s heading on vacation during the festival season. Thailand, Malaysia, Singapore, Dubai, Mauritius, China, Indonesia and India are popular holidaying destinations for affluent Nepalis. Travel agencies executives said the outbound segment is likely to witness a dip of about 50 percent in numbers this season. They said that travelers who had booked in advance are going through with their plans. However, there were fewer inquires and bookings since the beginning of August, when the dollar started picking up dramatically. On the last week of August, the Nepali rupee sank to a record low against the dollar , with the Nepal Rastra Bank (NRB) determining the exchange rate at Rs 108.90 per dollar . “There has been a 20 percent rise in travel packages this season due to the impact of the rising dollar ,” said Satya Karki, outbound tour manager at the President Travels and Tours. “This has cut down inquiries and bookings by 75 percent, as of the second week of September.” According to Karki, the President Travels and Tours had estimated 200 outbound clients this season, but inquiries and bookings have been very nominal. Anil Dharel, international holiday line-manager of the Ace Travels.com, said that they had been expecting 2,000 to head outbound for the Oct-Nov season, but bookings so far have not yet crossed 50 percent of the target. “The current trend shows that outbound growth has remained stagnant this year compared to last season.” However, Dharel said that the Nepali vacationers are waiting and watching for the dollar to slide. The average tour package to Thailand that last year cost Rs 40,000 per person for 4 night/5 day stay has now jumped to Rs 55,000.  The price includes return airfare and taxes. According to the Ace Travel, the Malaysia-Singapore 5 night/6 day package costs Rs 91,100, while a travel package for Dubai is Rs 72,200 for 3 night/4 day. According to the Malla Travel and Trek Services, from mid-July to mid-September, it has sold 150 outbound tour packages, almost half compared to last season. “However, outbound inquiries for October are picking up,” said Namira Munankarmi, senior executive outbound in the Malla Travels. “As the dollar is sliding, we expect more inquires will come.” The NRB has fixed the exchange rate of Rs 99.02 per dollar on Friday, down from Rs 108.90 per dollar on August 28. Interestingly, according to agencies, the dollar impact has forced travelers to reduce numbers in their group or family trip, and there has been a rise in independent or solo travelers. Travel trade entrepreneurs said that since the cost of tourism products (hotels, local transport, etc) have increased due to unfavorable exchange rates, it will not affect the budget of well-heeled Nepali holidaymakers, but will cause middle-class travelers to consider buying domestic tour packages this season. Outbound travel rose 22.47 percent, to 39,269 departures, in 2012. According to the Tourism Ministry, the number of Nepali’s traveling abroad jumped 80 percent in the last five years. In 2008, outbound travel amounted to 21,899 departures. Among the 861,518 Nepalis going abroad in 2012, vacationers made up 4.55 percent. Thailand is the preferred destination for Nepalis, with 67 percent of the total travellers choosing the exotic, tropical location.   Source: The Kathmandu Post