The role of currency value and its repercussions on international tourism

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Due to the presence of different currencies and the frequent changes in their exchange values, international tourism has wide repercussions on the balance of payments on developing countries like India. As such, the country has to balance its transactions with the rest of the world. There are also obstacles put by the authorities for crossing the national frontiers, and as a result, there is a need for documentations, passports, visas and a traveler needs to meet other conditions of entry and movement. All this regulates the flow of the tourists into the country. In states like Kerala tourist arrivals are greatly influenced by the changes in the international monetary system.

Thus, in economic terms, the domestic tourism stands on a different footing and has wide differences with international tourism, on the following grounds.
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Domestic tourism International tourism

1. Earnings from home tourism cannot Earnings from international tourism, in
claim any extra weightage in the form of foreign exchange can claim
investment planning extra weightage in investment
planning
2. Demand for home tourism can easily be It is not possible to regulate the
regulated demand for international tourism
3. It does not reflect the International The demand for home tourism reflects
distribution of incomes international distribution of incomes

Notably, now-a-days, due to improvement in the language skills, relaxed currency conversion rules, the assimilation of the customs followed in alien lands and the growing free movement of people between development countries, the distinction between domestic and international tourism in Kerala is diminishing.