The tourism industry is likely to suffer major losses in the coming times, following the recent terror attack in Mumbai. Tourism sector is already facing the heat of the global slowdown, causing 20 per cent drop in the business. Many foreign countries such as US, France and Australia are advising their citizens to refrain from traveling to India till the recovery of normalcy. Their warning becomes more important when the terrorists in India are targeting the foreign nationals.

Meanwhile, many tourists are asking the travel agents to cancel air tickets and holiday packages in the wake of the recent attack. The acting President of Travel Agents Federation of India (TAFI), Pradip Lulla said that zero commission and recession already impacted the tourism sector and fresh attacks would further diminish its prospects in the coming festival season. The November-February period is considered as the pleasant season, which attracts maximum tourists from US and Europe.

The number of foreign tourists has grown by only 2% in the last two months as compared to 10-11% growth in August 2008. Many international airlines have also cancelled flights to Mumbai, as maximum of their staff is held at the Trident Hotel. Many premium hotels of the city also witnessed decline in bookings due to cancellations by visitors for conferences and exhibitions.