A Study on Impact of Global Financial Crisis on Indian Tourism Industry

The recession not only hit all the sectors of United States, European and other developed countries but also the under developing and developed countries. The Financial crisis led to crashes of stock market, gave rise to currency crisis and liquidity crisis. This financial crisis changed in to a global economic slowdown with the crumbling of Lehman Brothers on 23 rd September 2008. The affect of global crisis had a direct impact on India in the form of reduction of foreign income, reduction in trade and decline in number of tourists to India which indirectly affected the Indian tourism sector. The objective of the Study is to understand the impact of global financial crisis on Indian tourism industries and to understand what policies or initiatives has the Indian government taken in order to curb the financial crisis that befell on the Indian tourism sector. The primary data is collected through the questionnaire from the major tourism industries and secondary data from various sources like magazines, journals and research papers. The data is analyzed by using statistical tools and findings are interpreted through graphs. The sample size is 10 major tourism industries. The sampling technique used is Stratified Convenience sampling. The area taken for research is Mumbai. In order to make over from recession, most of the tourism industries have made investments and expansion of business through mergers and joint ventures. The government of India has brought in numerous innovative policies for the same. The sector has to be allowed to have the export industry status so that businesses can benefit from state industrial policies and taxes on foreign exchange earnings.