Abstract
In the year 2016, Indian Government implemented demonetization by making Rs. 1,000 and Rs.500 was no longer a legal tender in order to curb black money and during 2017 it also brought GST to reform the taxation system in India. These economic measures shacked the entire economy and tourism sector bagged up with a polarizing impact with it. This study undertakes the impact of demonetization and GST on the Indian tourism sector through the Foreign Tourist Arrivals (FTAs) pre and post implementation of these measures. While considering the demonetization, it has reduced the growth rate of FTAs in a declining manner as an immediate effect but, considering a year later it has been improved up to 14.4% in November 2017 as compared to that November
2016. On the other hand, GST has improved the FTAs from July 2017 to December 2017 when compared to previous six months of 2017.
Keywords: Goods and Service Tax, Foreign Tourist Arrivals, Demonetization, Indian Tourism
References
1) Anju Lopez (2017), “The effect of demonetization on Tourism industry”, Market Next with Alex Mathews.
2) Ankita Chakraborthy, Anuslup Roy Barman (2017). “GST: A Mixed bag for tourism sector”.
3) Ashita Chadha, Ritu Sharma (2017), “Demonetization: Economic Impact on Different Sectors in India”, International Journal of Latest Technology in Engineering, Management and Applied Sciences, 6(6).
4) Brief write-up on Tourist Inflows during 2017, Market Research and Statistics, Ministry of Tourism.