Tours to India - will prices increase in 2017?

The last ten days of January were overshadowed by news of changes in the tax system for Indian companies operating in the tourism sector. A decision was made to increase taxes on excursion programs and hotel accommodations. The first point provides for an increase from 4,5% to 9%, the second point - from 1,5 to 9%. The introduction of the new system threatens to increase the cost of vouchers. However, this law will not affect tours for which payment will be made before January 22. The Ministry of Finance promises a slow rise in prices.

One of the leaders of a large travel company shared his opinion on this issue. Tatyana Markova said that already in the past year, Indian partners were forced to include a tax in the tour package, which ranged from 1,5 to 4,5%. This year the tax increase is projected to reach 9%.

The pessimistic forecast is not shared by many experts who believe that the promised price increases will not follow. They believe that the host country will reduce prices using its own resources so as not to scare away tourists.

For example, the Ayurveda Tour company, well known in the tourism market, assured that until the end of the 2016/2017 season, Indian companies with which Ayurveda Tour cooperates will not change prices for booking hotels on the Indian coast for the sake of maintaining the tourist flow at the same level. The costs imposed on the receiving party by the authorities will be compensated from the company's budget.