Stronger Dollar, Pound, Euro to Hurt Students, Tourists
The impact of currency will hit destination weddings, cruise trips as well as medical travel
Chennai: Apart from the US dollar, rupee’s weakness against other leading currencies, including UK’s pound and Euro is a major worry for students in international universities and tourists travelling abroad during the winter.
“While we are talking about the rupee's weakness against the US dollar, not much is being discussed about the rupee's weakness against other major currencies like the UK’s pound and Euro. This is a major concern for international students,” said Suresh Kumar, director, Truematics.
Compared to the levels seen last year, the rupee has depreciated around 7 per cent against the US dollar. In the case of the pound, the depreciation is more than 10 per cent and the Euro too has strengthened over 7 per cent in the past one year. Apart from the US and Canada, the UK, Ireland, Germany and France are also key destinations for Indian students.
“Parents will have to shell out more money for the tuition fee as well as other expenditures of their wards studying across these countries. The students planning to leave in January too will have to spend more on air fares and other travel-related expenses,” he said.
Even in the case of leisure and business travel, a weaker rupee will disturb travel plans and budgets. “It has a multiplier effect on travel. The cost of airfares, hotels, and all other expenses go up. Tourists with a fixed budget will have to cut short their plans,” said Iqbal Mulla, chief consul of Global Tourism Council.
While tourists travelling to destinations like the US, Canada, and Europe will have a disadvantage, those travelling to South-east Asian countries, where the exchange rates have remained comparatively stable also will get affected. Most of these countries prefer to have dollar, pound or Euro as the third currency. “There are very few countries like those in the Middle East, Nepal or Sri Lanka, which exchange in Indian rupee,” he said.
The impact of currency will hit destination weddings, cruise trips as well as medical travel.