Economic factors affect travel

In the global economy, the state of the economy in a particular country can adversely affect the number of tourist from that country who can afford to holiday abroad. For example, due to the fall in oil prices, the russian economy has been adversely affected and fewer russian tourists can afford to holiday abroad, especially in Goa and India.

The US$ Indian rupee exchange rate has also increased, so holidaying in Europe or North America has also become more expensive for Indian citizens or residents. Some travel operators are offering a European tour package for Rs99,999 or less, however a US tour package of similar duration will cost more than double at Rs 1,99,999, which relatively few Indian citizens can afford.