There were good action seen in tourism stocks on Monday. The shares of Indian Hotels Company Ltd surged more than 10 percent, informed Anil Singhvi, Managing Editor at Zee Business, while talking about development in this sector. Shares of Indian Hotels were trading at Rs 164.25, up by 15.20 points or 10.20 percent at 2:19 pmon NSE.

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Speaking on the reasons behind the surge and development in the tourism sector, Varun Dubey, Senior Research Analyst at Zee Business, said that the bookings have increased during this festive season, that is from now till Diwali.  

 

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Prime Minister Narendra Modi also has said that more focus will be given on states with tourism destinations, the analyst added. He said that efforts are being made to fully vaccinate the people living in tourist destinations.

The research analyst added that this is the government's priority because they want that the tourism sector, which was one of the sectors to get affected maximum due to the outbreak of the Covid-19 pandemic, should be revived first. States like Goa, Himachal Pradesh, Kerala, Andaman, North-East are being focused for vaccination drive.

 

Apart from this, several other updates are coming up regarding the tourism sector. Details:

1. Soon foreign tourist will be allowed in India. However, no official announcement has been made on the same but it is expected that in the coming 10-12 announcements for the same can be made, the analyst said. Around 5 lakh foreign tourists will be issued free visas, he added.

2. Recently, the Ministry of Civil Aviation has said that domestic airlines will now be able to operate at 85 percent of their pre-Covid capacity. The ministry increased the cap on airline capacity from 72.5 percent to 85 percent. Also, it tweaked the price cap formula letting airlines set fares for travel beyond fifteen days. Till now price caps were applicable on tickets up to 30 days from the booking date.

3. The analyst further said that casinos in Goa will open from Monday with around 50 percent capacity. He further added that this will impact companies like Delta Corp Ltd.

4. He said that the Indian Railway Catering and Tourism Corporation (IRCTC) has tied up with Cordelia Cruises, to offer India’s first indigenous cruise liner for places like Goa, Lakshadweep, Sri Lanka, among others.