IMPACT OF DEMONETIZATION IN INDIAN HOSPITALITY AND TOURISM INDUSTRY
Mr. Sourabh Dev Tiwari Junior Assistant (H) Division of Student Affairs Indian Institute of Technology Guwahati
Abstract
On the 9th 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.
Keywords: Demonetization, Hospitality and Tourism, Challenges, FTA’s &FEE, SWOT, GDP & Economy, Digitalization.
INTRODUCTION
restaurants and food and beverage operations etc. which run their business on the basis of cash transaction.India is rich in culture and heritage, rich and diverse culture and geography of India is becoming highly famous attraction amongst international tourists. There are beaches, historicalmonuments, hill resorts,places of religious interests, etc. that attract touristsfrom all over the world. India has various types of tourisms that includes cultural and heritage tourism along with religious, medical, business, spiritual and sports tourism. India will unquestionably get hold of most of the hearts and minds of travellers and tourists from all around the world through the beginning which gave pace to grow the hospitality, tourism and hotel industry. As per reports,Indian hospitality and tourism sectoraffected due to demonetization in upcoming 2 years, this step will have mixed effects on the hospitality and tourism industry in India. Demonetization will have a positive impact in long term restaurants businessbut this sector will experience a short term slowdown in growth.
SCENARIO OF DEMONETIZATION IN DIFFERENT COUNTRIES IN WHICH DEMONETIZATION WAS IMPLEMENTED
Sr.
No. Countries Year Economic Effect Reasons for Failure
1 Ghana 1982 Weaker economy Blackmarket was
supported by the people and their
invested in Physical assets.
2 Nigeria 1984 Collapsed economy,
unsuccessful
More debt, financial Difficulty and inflation.
3 Myanmar 1987 Unsuccessful Many people were
Killed due to Mass protest.
4 Soviet Union 1991 Unsuccessful Poor harvest.
5 Australia 1996 No side effects Try to introduce
Plastic money.
6 North Korea 2010 Weak Unsuccessful No food and
Shelter.
7 Zimbabwe 2015 Weak Unsuccessful Face value of one
hundred trillion dollars dropped To $0.5 dollar.
8 Pakistan 2016 Can’t be predicted People had sufficient
PERCENTAGE OF CASHLESS TRANSACTIONS IN MAJOR ECONOMIES
Source: Business Today, December 29, 2016.
REVIEW OF LITERATURE
BalamuruganS. and HemalathaB.K. (2016), the study focused on highlighting the long term & short term effect of demonetization on the various organized and unorganized sectors depending upon the extent of cash availability,credit availability, spending & government finances. They stated that medium and large scale businesses are unaffected by such ban where as small scale establishments were deeply affected by demonetization.
AmbalikaSinha and DivyaRai (2016), Stated in their article that informal sectors were suffering mostly where minimal cashless transactions are used in Indian economy. They have indicated the microeconomic effects and macroeconomic effects of demonetization. The microeconomic effects are beneficial i.e. uncollected revenue increased & political move on terror financing was restrained, whereas the macroeconomic effect was not beneficial i.e. due to the problems faced by the people.
SandeepKaur (2016),mention in their article about the effects of demonetization on Indian economy and system. This move would be positive for sectors like banking and infrastructure in the medium to long term and negative for sectors like consumer durables, luxury items, gems and jewellery, real estate and allied sectors. This move also aims at lower corruption, lower inflation, better fiscal balance, complete elimination of fake currency and economic growth in the longer term.
Sujatha (2016), quoted in her article that the this step given too much pain to the common man and so many sectors in the country have been affected by the failure to replace the old currencies in adequate measures. The fallout of the Demonetization now looks to have spilled over into the tourism and hospitality business as well.
AnumehaChaturvedi (2016),quoted that the Government decision is aimed at reducing corruption, terrorism, black money and counterfeit notes. The move will create problems for the travel and hospitality sector, luxury brands, already reeling under slowing sales and tighter income tax regulations, may face more problems.
Prabhurajan. B. S (2016), stated in his article that the number of people going to restaurants has declined largely & the hotel industry here feels to improve at least mid-December. The hospitality sector’s earning had seen a continual fall since September and it is drastically declining. Despite the fall in revenue the costs-involved in running hotels & restaurants has remained the same.
61% 60% 59% 59% 57% 56% 52%
45%
35% 33% 29%
16% 15% 14% 10%
2%
MandeepLamba (2016),said that the organized banqueting business will witness growth. The weddings business will also return to Indian hotels from their overseas counterparts. Over the short and medium terms, the demonetization drive will have varied effects on the many sections of the tourism and hospitality sector in India, but in the long term there will be positive impact in the growth of the tourism and hospitality sectors.
CD Equisearch Pvt. ltd(2017),in this article, they have concentrated on effects of demonetization on various sectors. The move shed a dark shadow on the increasing of tourism and hospitality sector in India. These sectors are facing a tough time. November to January months generally witness the maximum number of international tourists inflow in India, due to ban there has been a 65% drop in Christmas & New Year bookings. Cash crunch has adversely affected the liquidity of currency exchanges in India.
Ela Group (2017) article has concentrated on demonetization impact of Mysuru tourism sectors. For the next two years, this step will have a mixed effect on the tourism and hospitality sectors in India. Most of the tourism and hospitality business in the country are unorganized sector, tourists are forced to post pone or cancel their travel and accommodation due to less availability of cash. The Mysuru tourism department has a direct impact.
A ChitraBalasubramaniam(2017),state in her article that India is switching to cashless economy and electronic transactions has caused a negative impact initially on some hotels. These measures include cancelling legal tender money & placing restrictions on cash transactions to put an end to black money.
Jai Bansal(2017),state in his article that demonetization is a surgical strike on fake currency, black money, unorganized trading,terrorism,share market,real estate, etc. The Indian industry is divided into three categories i.e. agriculture sector,manufacturing sector and service sector. After demonetization, only agricultural sector shows positive impact while other two sectors – manufacturing and service sectors were crashed down. He also focuses on demonetization impact on Indian economy’s different sectors.
RamphulOhlan (2017), state in his research note that the resilience of Indian tourism industry to India's sudden demonetization is confirmed by investigating the stationary status of internationaltourist arrivals series using newly developed break-point unit root tests on monthly data over the period of 2003 to 2017. The most significant finding of the study is that the series of tourist arrivals to India is stationary and no structural brake is presented correspondent to recent demonetization.
NEED FOR THE STUDY
The above review of literature reveals that many studies have been conducted based on the secondary data to understand the impact of demonetization on public, banking sector, black economy, corruption, stock market, service sector and so on. Many newspaper sources and TV shows spoke about the negative impact of demonetization on many sectors and small business. Therefore the present study has been conducted to know the opinion of owners of small to medium tour & travel and hotel business about the demonetization and problems faced by them during the present demonetization period.
OBJECTIVES OF THE STUDY
1. To analyze whether demonetization has affected foreignexchange earnings and foreign tourist arrivals in India.
2. To know the perception of owners of small to medium tour & travel and hotel business about present demonetization.
METHODOLOGY
The present study has been conducted based on both primary and secondary data. Secondary data used to understand the concept of demonetization and to analyze the existing review of literature about demonetization. 60 small to medium tour & travel and hotel business owners have been selected from various cities (Delhi, Jhansi, Gwalior, Orchha, Khajurajo, Ludhiana, Jalandhar, Indore, Bhopal, Lucknow, Bangalore, Hyderabad, Chennai, Guwahati, and Shillong) of India. The present study based on survey method. A structured questionnaire has been served to the owners of 60 small to medium tour & travel and hotel business to collect the opinion about the present demonetization and the problems and challenges faced by them. Descriptive statistics have been used to analyze the opinion collected from the respondents.
FOREIGN EXCHANGE EARNINGS (FEES) FROM TOURISM IN INDIA DURING 2015, 2016 AND JAN-APR 2017
Month FEE’s (in Rs. crore) Percentage Change
2015 # 2 2016 # 2 2017 # 1 2016/15 2017/16
January 12,100 13,671 16,135 13.0% 18.0%
February 11,642 13,661 15,790 17.3% 15.6%
March 11,133 12,985 14,988 16.6% 15.4%
April 10,091 11,495 14,692 13.9% 27.8%
May 9,505 10,260 7.9%
June 9,564 10,677 11.6%
July 11,982 14,285 19.2%
August 11,411 12,553 10.0%
September 10,415 11,642 11.8%
October 10,549 12,100 14.7%
November 12,649 14,259 12.7%
December 14,152 16,558 17.0%
Total 1,35,193 1,54,146 61,605 14.0% 18.9 @
'@: Growth Rate over Jan-Apr 2016
#1: Provisional Estimate (based on provisional FTAs of 2017 and final FTAs of 2016).
#2: Revised Estimates (based on final FTA received from BOI).
MONTHLY FTA'S IN INDIA FROM 2008-2017
Source: The Statistics Portal and Market Research and Statistics, Ministry of Tourism, GOI.
(https://www.statista.com/statistics/206889/number-of-foreign-tourist-arrivals-in-india-by-month/and http://tourism.gov.in/market-research-and-statistics)
0 200000 400000 600000 800000 1000000 1200000
Jan Feb March April May June July Aug Sept Oct Nov Dec
Monthly FTA's in India from 2008-2017
2008 2009 2010 2011 2012
2013 2014 2015 2016 2017
Months 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Jan 511781 481308 568719 623885 681002 720321 759000 791000 844000 983000
Feb 611493 489787 552152 635527 681193 688569 758000 761000 847000 956000
March 479765 442062 512152 550051 606456 639530 693000 729000 817000 906000
April 361101 347544 371956 437792 447581 540580 535000 542000 599000 740000
May 304361 305183 332087 355333 374476 417453 456000 510000 529000 630000
June 341539 352353 384642 412336 433390 451223 502000 512000 550000
July 431933 432900 466715 513853 485808 506427 569000 628000 736000
Aug 383337 369707 422173 444548 445632 486338 576000 599000 670000
Sept 341693 330707 369821 401995 411562 453561 509000 542000 615000
Oct 450013 458849 507093 562873 556488 598095 668000 683000 754000
Nov 531683 541524 608178 636762 701185 733923 765000 816000 891000
RISING CONTRIBUTION TO INDIA’S GDP
Notes: CAGR – Compound Annual Growth Rate,
E - Estimates, GDP stands for Gross Domestic Product
Source: India Brand Equity Foundation, June 3, 2017.
(https://www.ibef.org/industry/indian-tourism-and-hospitality-industry-analysis-presentation)
A SWOT ANALYSIS ON DEMONETIZATION
STRENGTHS
Put an end to Black money economy of India.
Stringent IT Department monitoring into individual bank accounts.
Encourage cashless transactions.
New security features in the newly introduced currency which makes it difficult to replicate.
Too much of downfall in the crime rate and terror activities in the country.
Avoid Counterfeits through new currency.
WEAKNESSES
Re-calibration of ATM Machines on time.
Insufficient available infrastructure with the current banking system.
Sudden shortage of cash due to improper availability of cash.
Improper channelization and distribution of cash across various cities.
Rural area needs are completely ignored.
Huge communication gaps in the promised deadlines.
Supply chain, Retail and Procurement sectors hampered drastically due to the cash mode payment gaps within their process cycle.
Small to medium tour & travel and hotel business are facing huge loss of revenue.
Healthcare and Pharmaceutical sector hampered drastically due to improper instruction on channelizing the demonetized currency.
Wedding Planners business put to halt for undecided time.
Inflation may see a steep and steady hype due to delay in transportation of needful groceries on time to the market.
business due to sudden shortage of cash.
OPPORTUNITIES
Sudden pickup of online wallets economy.
POS and Merchant payment gateways terminal
economy boosted immensely.
Higher visibility of the transactions at individual level to the government.
More accurate taxation starting this financial year.
Real-estate business to be more transparent. Gold and other commodities investment to be
more accurate and transparent.
More online marketplaces spanning different sectors to be welcomed.
High level of online transaction on restaurant, hotel and tourism services outlets.
THREATS
Illegal exchange of Demonetized cash.
Gray market of fraud account holders to accumulate demonetized cash as much as possible in multiple accounts.
Poor people to come under IT Department scanner for their prolonged savings.
Proposals to reintroduce some high value currency may bring back the black money market into business.
LONG TERM & SHORT TERM IMPACT DUE TO DEMONETIZATION
Debate by economists has expressed varied opinions on demonetization in the country. Here is the long term and short term impact of government's move to make India a cashless economy.
Key Point Short-term impact Long-term Impact
GDP Growth GDP growth to be negatively
impacted by 0.5-1% due to drop in consumption
With a tax net widening after restriction on cash economy, GDP in
the long-term likely to get a boost. Inflation Inflation likely to come down due
to low demand owing to liquidity problem
Since effect of lower demand can have a lagging impact on inflation, prices may remain flat or fall in the
long term. Interest rates With Banks flush with cash,
interest rates may come down in the short-term
If demonetization boots formal banking and more cash continues to
come in the system, interest rates may fall further.
Fiscal Deficit Unlikely to have much impact as most of the gains (RBI surplus, higher tax collections, penalties)
will accrue after FY2017.
With likely increase in the size of tax collections and formal economy would improve the country's fiscal
DISCUSSION
The following data has been classified into two A and B categories that is:-
(A) Analysis of an effect on small to medium tour & travel and hotel business such as year of establishment, average monthly income before and during demonetization period and accepting plastic money.
(B) Analysis of general opinion of owners of small to medium tour & travel and hotel businesses about present demonetization and opinion about the problems faced by them during demonetization.
(A) The following information has been collected from owners of various small to medium tour & travel and hotel business in India and analysed based on descriptive statistics.
YEAR OF ESTABLISHMENT OF HOTEL Year of
Establishment
Tour & Travel Hotel Total Frequency Percentage
Established before 2000
7 14 21 35.0
Established during 2000 - 2010
9 18 27 45.0
Established after 2010
6 6 12 20.0
Total 22 38 60 100.0
Source: Field survey
The above table reveals the year of establishment of small to medium tour & travel and hotel business in India. 21 were established before 2010 constituting 35%, 27 were established during 2000-2010 constituting 45% and 12 were established after 2010 constituting 20%.
AVERAGE MONTHLY INCOME BEFORE DEMONETIZATION Average Income Tour &
Travel
Hotel Total Frequency Percentage
10,000-20,000 9 18 27 45
20,001-40,000 7 8 15 25
40,001-60,000 4 7 11 18.33
60,001-80,000 1 3 4 6.67
80,001-1,00,000 1 1 2 3.33
1,00,001-1,20,000 0 1 1 1.67
Total 22 38 60 100.00
Source: Field survey
AVERAGE MONTHLY INCOME DURING DEMONETIZATION
Average income Tour & Travel Hotel Total
Frequency
Percentage
5,000-25,000 15 23 38 63.33
25,001-50,000 6 9 15 25
50,001-75,000 1 5 6 10
75,001-1,00,000 0 1 1 1.67
Total 22 38 60 100.00
Source: Field survey
The above table reveals the average monthly income earned during demonetization by small to medium tour & travel and hotel business. Maximum 38 were earned between 5,000 to 25,000 constituting about 63.33%, 15 were earned between 25,001 to 50,000 constituting about 25%, 6 were earned between 50,001-75,000 constituting about 10% and 1was earned between 75,001 to 1,00,000 constituting about 1.67% as an average monthly income.
ACCEPTING PLASTIC MONEY Accepting
plastic money
Tour & Travel Hotel Total
Frequency
Percentage
Yes 5 9 14 23.33
No 17 29 46 76.67
Total 22 38 60 100.00
Source: Field survey
(B) The opinion of owners of small to medium tour & travel and hotel businessabout the demonetization, the problems and challenges faced by them has been analyzed through descriptive statistics.
OPINION ON PRESENT DEMONETIZATION AND PROBLEMS FACED DUE TO DEMONETIZATION BY THE
OWNERS OF SMALL TO MEDIUM TOUR & TRAVEL BUSINESS
Sr.
No. Statements
Strongly
Agree Agree Neutral Disagree Strongly Disagree Total
T&T % T&T % T&T % T&T % T&T % TF %
1
The Government move towards
Source: Field survey
2
Demonetization step is required to eliminate corruption, black
money and terrorism 3 13.64 10 45.45 5 22.73 2 9.09 2 9.09 22 100
3
Cashless economy will help in
economic growth 3 13.64 9 40.91 6 27.27 3 13.64 1 4.55 22 100
4
Demonetization may bring cash crunch in short term but will
help in long run 3 13.64 8 36.36 7 31.82 3 13.64 1 4.55 22 100
5
Demonetization has been
success 2 9.09 6 27.27 7 31.82 5 22.73 2 9.09 22 100
6
This step will bring great change
in tourism industry 3 13.64 9 40.91 6 27.27 3 13.64 1 4.55 22 100
7
Exchange of currency disturbed
the tourism business 6 27.27 8 36.36 4 18.18 3 13.64 1 4.55 22 100
8
The sudden announcement of
demonetization led to problem
in currency exchange 12 54.55 7 31.82 2 9.09 1 4.55 0 0.00 22 100
9
Created problem in paying
salary to workers 12 54.55 8 36.36 2 9.09 0 0.00 0 0.00 22 100
10 Faced problem of price crash 12 54.55 7 31.82 3 13.64 0 0.00 0 0.00 22
100
11
During demonetization income
OPINION ON PRESENT DEMONETIZATION AND PROBLEMS FACED DUE TO DEMONETIZATION BY THE OWNERS OF SMALL TO MEDIUM HOTEL BUSINESS
Source: Field survey
Sr.
No. Statements
Strongly
Agree Agree Neutral Disagree
Strongly
Disagree Total
H % H % H % H % H % TF %
1
The Government move towards
demonetization is appreciated 7 18.42 14 36.84 9 23.68 5 13.16 3 7.89 38 100
2
The step of demonetization is required to eliminate corruption, black money and
terrorism 6 15.79 14 36.84 12 31.58 4 10.53 2 5.26 38 100
3
Cashless economy will help in economic
growth 5 13.16 15 39.47 11 28.95 5 13.16 2 5.26 38 100
4
Demonetization may bring cash crunch in
short term but will help in long run 5 13.16 16 42.11 11 28.95 4 10.53 2 5.26 38 100
5 Demonetization has been success 4 10.53 13 34.21 14 36.84 5 13.16 2 5.26 38 100
6
This step will bring great change in
hospitality industry 5 13.16 17 44.74 10 26.32 4 10.53 2 5.26 38 100
7
Exchange of currency disturbed the
hospitality business 9 23.68 17 44.74 7 18.42 4 10.53 1 2.63 38 100
8
The sudden announcement of
demonetization led to problem in currency
exchange 22 57.89 11 28.95 5 13.16 0 0.00 0 0.00 38 100
9
Created problem in paying salary to
workers 22 57.89 10 26.32 6 15.79 0 0.00 0 0.00 38 100
10 Faced problem of price crash 23 60.53 11 28.95 4 10.53 0 0.00 0 0.00 38 100
The above tables disclose the opinion of owners of small to medium tour & travel and hotel business. 9 (T&T) and 14(H) appreciate the demonetization move constituting around 40.91% and 36.84% respectively, 10 (T&T) and 14(H)agree that the demonetization step help to eradicate corruption, black money and terrorism constituting around 45.45% and 36.84%% respectively, 9 (T&T) and 15(H)agree that cashless economy leads to the economic growth constituting about 40.91% and 39.47% respectively, 8 (T&T) and 16(H) agree on cash crunch caused by the demonetization in short term and may help in the long run constituting around 36.36% and 42.11% respectively, 7 (T&T) and 14 (H) neutral on the success of demonetization in Indian economy constituting around 31.82 % and 36.84% respectively, 9 (T&T) and 17 (H) agree in change brought by demonetization in hotel industry constituting around 40.91 % and 44.74% respectively, 8 (T&T) and 17 (H) agree that the exchange of currency has disturbed the business of tour &travel and hotel industry constituting around 36.36 % and 44.74% respectively, 12 (T&T) and 22 (H) strongly agree that the sudden move of the Government towards the demonetization has led to the problem of currency exchange and in paying salary to his workers constituting around 36.36 % and 57.89% respectively, 12 (T&T) and 23 (H) strongly agree that they faced the problem of price crash constituting around 54.55% and 60.53% respectively and 13 (T&T) and 24 (H) strongly agree that during demonetization income was less constituting about 59.09% and 63.16% respectively.
Note: T&T= Tour & Travel; H= Hotel; T%= Total Percentage; TF= Total Frequency
PROBLEMS AND CHALLENGES DUE TO DEMONETIZATION
1. Foreign tourists faced too much of problems to buy tickets in various monuments and other tourist places as they are not accepting the old Rs.500/- and Rs.1000/- denominations and they have few numbers of machines in few places only to accept the plastic money from the tourists. 2. Tourist both domestic and International are struggle to pay their hotel and travelling expenses
to the service providers due to lack availability of new currency in banks & ATM’s as well as cashless transaction facilities in the small to medium service provider in India.
3. Most of the businesses in India, restaurants, especially budget guesthouses, tourist sights,hotels, buses and taxis do not have facilities to accept card payments and that creating problems to the travellers.
4. The accommodation section of hotels is much affected, but leisure segments like hotel banquets and high-end restaurants are feeling the pinch as weddings are being called off and many pre-bookings for different wedding ceremonies are also being cancelled.
5. The high-end restaurants are also facing drastic change as people are replacing fine-dining with pocket-friendly eateries.
6. Luxury items will have a drastic negative impact. Majority of the people spend their undeclared income on such products. After the decision, it is likely that all luxury segments like clothing, electronics, luxury car, furnishing and allied business will take a hit. Media and hospitality industries are also get affected.
7. The effect on food & beverages business as well as cabs has been severe. Restaurant owners complained that nearly 25% business has dropped as people are facing problems with paying lower denominations to avail the services.
9. Need of real money, There are many places where you can't find an alternate to real money like parking charges, fruit / flower shop, pooja / prayer items, bus / auto fare, small provisions, temple, petty shop, cobler, etc… Meeting these needs was a challenge.
10. Leave work, Stand in Ques, People have to leave work and stand in queues for banking transaction, for exchanging only 4000 rupees at one chance.
11. No money for wedding that effect the hospitality service providers. 12. ATM’s couldn’t serve people anymore because Lack of Money in ATM’s.
13. Currency Change not Available, Many people who are getting Rs. 2000 note from banks or ATM are not able to get the change as none of the shopkeeper is ready to give change of Rs. 1800 on purchase of Rs. 200 so change is a big worry to common person.
14. Usage of E Wallets, Usage of E-Wallets is one of the best solution but challenge is that many people who are of old generation don't use smart phone and if they use then also big ratio among them is of people who don't feel secure on transferring the money through E-Wallets. 15. Banks unable to feed their Customers, You can still find long queues of people waiting outside
banks for their number and some of the times it happens that after long hours of waiting they come to know that cash is finished and now they have to come again after some hours or need to be in queues tomorrow again.
16. Old and poor people losing lives - It's been in several news channels that some of the people who are not well or are very weak have lost their lives due to standing in queues for long hours. 17. Everyone in India, including tourists, is struggling to cope. The biggest problem is finding enough
legal tender – cash – to pay for day-to-day things like food, restaurants, chai, taxis, tickets, entrance fees, souvenirs, hotels that don’t accept credit cards, etc.
18. Small to medium hotels, tour and travels, Restaurants are increasingly move towards accepting payment in cards to run their business and facilitate their guests in terms of money. 19. No clear concept of Indian money from Foreign Bank.
20. Highly affected by the savings economy. 21. To curb small business sectors.
22. Low transaction by poor, middle and neo middle class people. 23. No permanent and alternative solution of demonetization. 24. Lack of New Five hundred rupees currencies.
25. Tribal and hill area people were highly affected for transaction.
LIMITATIONS
The study is limited by the geographical regions of India as the study is conducted on small to medium tour & travel and hotel Business in selected cities of India and there is time constraint to collect the data from all the cities of country. Demonetization implemented just few months back so thatTravellers and service sector still facing problems to adopt the change. It will take time to make the visitors and guest comfortable through availability of sufficient cash in the market as well as cashless transactions in the small and medium level businesses in hospitality and tourism industry in India.
CONCLUSION
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