Jaipur: Soaring fuel prices, tumbling stock markets, reduced corporate travel, and geopolitical unrest have combined to batter the summer tourism season in Rajasthan. Industry associations report that hotel occupancies have plunged to just 35-40%, compared to significantly higher levels last year.
Sharp Decline in Demand
The sharp fall in demand has forced many properties to slash tariffs, with room rates dropping 20–25% from the previous season. Hoteliers attribute the downturn to both reduced domestic travel and weaker foreign arrivals, leaving the sector struggling to cope with shrinking revenues.
Industry Seeks Government Support
Tourism stakeholders have requested the state government to reduce VAT on aviation turbine fuel (ATF) on the lines of Maharashtra and Delhi, which recently reduced rates from 25% to 7% to support aviation growth and keep airfares more affordable. The industry believes that affordable air connectivity is critical for tourism revival.
“A reduction in ATF VAT would encourage airlines to introduce and expand flight operations to key destinations like Jaipur, Udaipur, Jodhpur, Jaisalmer, Bikaner, Kota, and Kishangarh,” said Ranvijay Singh Rathore, secretary of the Hotel Federation of Rajasthan.
Summer Travel Trends
Summer travel in Rajasthan has been growing over the past several years. Despite a temporary lull due to Operation Sindoor last year, overall visitor inflow was good during the summer season. However, the current scenario is different. “The impact of the Gulf war, high oil prices, and gloomy economic outlook have hit the sector hard this year. Occupancies in pure-play leisure properties have declined to 25-30%. They are unable to generate enough business to meet operating expenses and are making losses,” said Rathore.
Tourism as Economic Pillar
Tourism remains a major pillar of the state’s economy, generating employment and investment. It has become a major destination for weddings and MICE tourism. The industry emphasizes that affordable and strong air connectivity is essential for the sustained growth of the sector.
