With the UK arm of Thomas Cook winding up, India’s inbound tourism is expected to take a hit causing stress on the foreign exchange earnings of the country in the next few months.
Though the Thomas Cook India remains unaffected, its UK arm sends a lot of high spending tourists from the European countries like United Kingdom, Germany and France. The travel giant has wide presence in countries like UK, Germany and Italy.
The tourism industry in India is already struggling and the implications of the collapse of Thomas Cook might further make it worse.
As the global economic slowdown is already looming large affecting economies, growth in the tourism industry is likely to add to the woes. With Thomas Cook going bankrupt now the travel industry is going to see tough time.
Thomas Cook’s Indian arm has become a completely separate entity after its takeover by a Canadian firm Fairfax Financial Holdings in 2012. The Indian firm however believes it would have to suffer the setback for a brief time.
However, other travel firms in the United Kingdom are expected to fill in the gaps left by the travel giant, which might help the industry settle down with implications in the mid-term.
Speaking to a news agency Chairman and Managing Director of Thomas Cook India, Madhavan Menon said “In the United Kingdom, there are many other tour operators and I expect that they will take up the capacity and it will not be a problem for long.”
“Immediate impact of collapse of Thomas Cook could be that there will be an increase in prices or the yields for tour operators in UK, but things might settle down in medium term,” added Madhavan Menon.