The Mumbai terrorist attacks, on top of a global economic recession, have come as a double whammy for India's tourism and hospitality industry.
Only 14 of 90 rooms were occupied at one of the top luxury hotels in India's most popular tourist destination, Agra, last week.
And on one day last week, the northern Indian city saw only about 2,000 people visiting the Taj Mahal, the white marble mausoleum built by a medieval emperor for his beloved queen.
Usually in the high tourist season of Indian winter the monument draws more than 15,000 visitors each day.
"The situation is grim, to say the least, with no prospect of improvement," said Rajiv Saxena, director of a travel company headquartered in Agra.
Saxena said he had received a call from a group in Australia who had seen an Internet article that said Agra hotels were threatened and wanted their tour to be changed to bypass the city.
"Can you imagine a tourist coming to India and not visiting the Taj Mahal?" Saxena asked.
While this group's tour was still on, Saxena said she had 40 to 45 percent cancellations since Nov. 26, the night armed gunmen unleashed three days of mayhem in India's financial hub, Mumbai, killing more than 170 people and injuring over 300.
Among their targets were luxury hotels, Taj and the twin Oberoi-Trident, where guests were killed and others held hostage until commandos rescued them after almost 60 hours of being under siege.
A total of 28 foreigners were among those killed in the Mumbai attacks. They included citizens of Israel, Germany, Japan, United States, Canada, Britain, Australia, France, Italy, Singapore and Japan.
Most of Saxena's cancellations are from the US, Britain and France.
"As we stepped into the high tourist season in India (November to March), we were already encountering a drop in business of about 15 percent with the recession in the western countries, Japan, Australia, where the high-end tourists mainly come from," Vijay Thakur, president of Indian Association of Tour Operators (IATO) said.
"Now with these attacks, it has probably dropped by at least another 10 percent but we have not yet collated the details."
Warnings against travel
Travel advisories put out by several countries warning of a high terrorist threat throughout India and specifically mentioning the attacks on the luxury hotels have added to the negative impact.
Thakur said heads of tour operators and hoteliers' associations are discussing the situation with Tourism Ministry officials to figure out a strategy to deal with the situation over the next months. "We have to build confidence," he said.
Rajindera Kumar, vice president of the Federation of Hotels and Restaurant Associations of India (FHRAI), felt it would take time to bolster confidence. "People are worried," he said.
The hospitality industry has been harder hit with a drop of almost 20 percent in business since the Mumbai attacks of Nov. 26 and is struggling to give a sense of security to prospective guests.
"Business was already down by 20 percent due to the global economic slowdown, said Kumar. “Then the Mumbai attacks sparked huge cancellations. Our industry is down by about 40 percent."
Several conferences and events had been cancelled or put on hold. Non-resident Indians who flock to India in the winter were changing plans. "Even smaller cities like Chandigarh and Punjab are seeing 20 to 30 percent cancellations," he said.
"Foreigners are preferring what they see as safer destinations. And domestic tourism has also dropped."
Cutting rates
Hotels are making varied efforts to meet the crisis.
The industry has been cutting rates. A room in a Delhi hotel that cost around 18,000 (about 362 dollars) to 23,000 rupees a night now comes at 12,000 to 15,000. Rooms in the range of 12,000-13,000 rupees are now 9,000. Elite guesthouses are coming as cheap as 4,000 rupees a night, Kumar said.
All luxury hotels across the country are upgrading security measures. "We are incorporating thorough checks at the gates and main porch. X-ray machines and metal detectors are being installed. All baggage is being thoroughly checked," Kumar said. Guests' identification papers are also being closely scrutinized.
The hotels are employing private security agencies to bolster an increased armed police presence at the entrances and perimeters. Staff members have been asked to be alert and vigilant.
"But hospitality and security don't go together," said Saxena. "I think we better look to 2009-2010. This high season can be written off."
A shadow over Goa
The situation has even cast a shadow over the Indian resort state of Goa, with its famous end-of-year party season likely to be hit as foreigners stay away and security is tightened.
Some 400,000 overseas tourists flock to the former Portuguese colony every year, particularly for Christmas and New Year's Eve, escaping colder climes to soak up the sun and then dance until dawn on its long sandy beaches.
But there are concerns about the sharp dip in visitors at what is normally the busiest time of year for the hoteliers, restaurateurs and beach hut owners.
"There has been a 20 percent decrease in tourist arrivals," said Ralf D'Souza, president of the Tour and Travel Association of Goa.
Some are domestic travelers, including the well heeled from Mumbai 600 kilometers to the north, who head to the western Indian state for weekend breaks. Others are big-spending foreigners.
"There have been cancellations from Russia and the United Kingdom, which make up much of the foreign clientele," said D'Souza.
A damaged reputation
A number of foreign governments, including Britain, Australia and the United States, amended their travel advice for India after the November attacks.
Israel has warned that year-end celebrations in Goa "could be the target of attacks by Islamist extremists" and urged its citizens to stay away. Russia issued a similar warning to its nationals this month.
Yet even before the Mumbai attacks, Goa, made famous as a stop-off on the hippie trail in the 1960s and 1970s and whose party culture is still a big draw, was suffering from a damaged reputation.
In February, the body of a 15-year-old British girl, Scarlett Keeling, was discovered on a Goa beach.
She was later found to have taken a cocktail of drink and drugs before her death, sparking concerns about the easy availability of illegal substances and the safety of foreign travelers.
A crackdown
Tourist authorities and police launched a crackdown when the season began in October, but were then hit by allegations that the son of a state government minister raped a German teenager.
The case was later dropped, with the alleged victim's mother claiming she was pressured into doing so by the authorities.
State tourism minister Francisco Pacheco said that any attack on Goa would be the final nail in its image as a carefree paradise destination.
"We don't mind tourists not coming for this season if they are wary of security but we don't want a terror attack to happen,” he said. “That will entirely finish Goa's image."
With that in mind -- and a recent warning in a leaked memo from the chief minister that the resort could be targeted by al Qaeda -- government officials have been busy tightening defenses.
State police have enlisted the help of the Indian navy, coastguard and marine police to patrol the shores, mindful that the 10 Islamist extremists who attacked Mumbai arrived by sea.
Bunkers have been constructed on beaches and the popular nighttime tourist markets have been told to increase vigilance and install closed-circuit television cameras as they may be targeted.
Christmas and New Year's Eve celebrations have not been cancelled but revelers are being told to expect rigid security, and officials are yet to decide on whether to allow beach parties.
AFP/DPA/Expatica
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The global recession and fears over terrorism have hit the Indian tourism industry hard in its traditional high season.
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