Cash crunch puts holiday plans on hold

BENGALURU: Cash-starved citizens putting on hold their travel plans or worse cancelling them altogether is affecting the city's tour and taxi operators, besides hurting the tourism industry. Stating that nearly 50% of weekend trips planned have either been cancelled or put on hold, operators said demonetization has hit foreign tourists too. A major reason for cancellations is that hotels in destinations frequented by Bengalureans aren't accepting cards.
Radhakrishna Holla from Bengaluru Tourist Taxi Owners Association said, “The corporates and techies who go holidaying on weekends have put brakes on splurging their little savings.But last weekend saw 50% cancellations.“
Foreigners are able to exchange currency in the KIA but cash withdrawal is limited, Holla said. “Even some star hotels are helping them withdraw cash in new Rs 500 and Rs 2,000 notes. In Hampi or Chikkamagalur, hotels are insisting on cash payment. Adding to the problems is drivers having to carry enough cash for making payments at check posts.
Sanjar Imam, president, Karnataka Tourism Forum, said that not many have cancelled bookings for Christmas and New Year so far. “We are not seeing a major shift towards online or card payments from travellers. The industry still depends on a lot of cash transactions,“ he said.
M Ravindran of Arjun Travels said that less than 50% of all his customers use cards or make online payments. “This is a cash-based industry . While there has been an increase in online transactions, it will take a long time before large-scale migration happens,“ Aurvind Lama, CEO and co-founder, Travelyaari said. That said, RBI capping e-wallet transaction at Rs 20,000 has clipped the ability to book tickets in bulk. The market size of private bus industry is Rs 25,000 crore of which 50% business happens between March and June and October and December. The government bus transport makes an average annual business of Rs 60,000 crore and it was not hit, said Aurvind, because it continued accepting old notes. Card payment for pass The Bangalore Metropolitan Transport Corporation has installed point of sale (PoS) machines at all major bus stands and pass distribution centres. Commuters can use debit or credit card to obtain monthly pass. BU postpones exams Bangalore University has postponed exams for 3rd and 5th semesters BA, BCom, BBM and BHM, earlier scheduled on November 28, to December 8.The university said there will be no change in the timings, venue or dates of other examinations.