The Implications of Demonetization and Currency Constraints on Indian Tourism – A Perspective Analysis

Abstract

MSME’s across the country which depends on cash transactions and not on electronic cash transactions bore the brunt of the demonetization policy declared on November 8, 2016. This study analyses the regulations which were originally enforced, then altered and reintroduced in a different format in a very short span of time has given rise to various undercurrents that affects tourism business. With respect to tourism, demonetization was a jolt as the policy decision came into force in the peak season, i.e., during the months of October–December when the tourist arrivals are usually high. Framed as a qualitative study in an exploratory mode adopting the Delphi Technique for deriving the inferences and apt deductions, this paper emphasizes the reviews of media reports for preparing the statements for the Panel configuring eminent tourism industry practitioners, academicians, consultants, NGO activists, and banking personnel. Further, an academic prediction regarding the nature and implications of the return to normalcy of tourism based on the assessment of the developments in the contemporary paradigm shift to the much proclaimed transparent economy. Also, the discrepancies involved in streamlining the denominations of currency notes are also discussed.