Impact of demonetization in Indian hospitality and tourism industry

On the 9^th of November 2016, the Government of India, delivered a masterstroke, by declaring, as illegal tender, the Rs. 500/-and Rs. 1000/-denominations in the currency system. National Restaurant Association of India had reported downfall of averaging upto 40% revenue in the sector in their initial weeks. Demonetization is the current biggest challenge in business of hospitality and tourism sector in India have described in this paper. After a tumultuous fortnight for the entire country ever since the government declare the partial demonetization of the higher value rupee notes. The service industry has definitely confront a short term effect of this, as spends are adjourn towards immediate needs. The most challenging period of demonetization sits fairly in the active season for the tourism industry. There was a flump in hotels and related services bookings in the initial week after the paper money withdrawal. Although, the premium hotel segment has not seen much effect as bookings are mainly done in advance and online. So the knock has mostly been confined to the unorganized sector. The paper draws facts from the existing articles and other reports. Also analyze the implementation of demonetization and its impact on hospitality and tourism sector which are based on the results collected through survey method from the owners of small to medium tour & travel and hotel business of various cities in India. This paper brings out key findings after interaction with industry professionals as to incorporate real-time, relevant and contemporary data. Demonization changes the working environment of the market. Organizations would also modify in their usage and utilization of the innovative tools and applications for the cashless payment. Tourist guide, home deliveries, QSR, KIOSK, Dhaba, etc. have bear the major impact, as there has been enormous loss of opportunity.