The G20 summit in India is presenting a lucrative business opportunity for travel companies, as a significant number of people are opting to leave the National Capital Region (NCR) during the event. Companies like SOTC and MakeMyTrip have experienced an increase in business as a result of this trend. However, retailers and traders in the NCR are worried about the closures and the potential loss of sales that may occur during the summit.
The closures and expected loss of sales during the G20 summit are causing anxiety among retailers and traders in the National Capital Region. With numerous foreign nationals visiting India for the event, retailers fear that they will miss out on the chance to expand their customer base. Meanwhile, travel companies like SOTC and MakeMyTrip are capitalizing on the situation, witnessing a surge in business as people choose to avoid the capital region during the summit.
Many educational institutions and private offices will be closed, and the remaining businesses will operate remotely during the summit. This has led to an unprecedented increase in travel, according to Indiver Rastogi, the President and Group Head of Global Business Travel at Thomas Cook (India) and SOTC Travel. Rajesh Magow, the Co-founder and Group CEO of MakeMyTrip, stated that the government’s announcement of official holidays during the G20 meet has resulted in a rise in searches for cities within driving distance from Delhi.
MakeMyTrip has witnessed a surge in searches for accommodation bookings in various destinations like Sawai Madhopur, Manesar, Amritsar, Vrindavan, Agra, Udaipur, Jaipur, among others. However, Magow observed that searches for hill destinations are relatively lower compared to plains.
On the other hand, retailers are concerned about the impact on sales in the capital region due to the closure of shops and malls during the summit. Rahul Mehta, the Chief Mentor of the Clothing Manufacturers Association of India, CMAI, highlighted that weekends constitute nearly 40% of a store’s weekly sales and that the closure of shops on September 8, 9, and 10 will significantly affect sales for the month of August. Anshu Tandon, the President of the Khan Market Welfare Association, expressed surprise at the decision to shut down businesses and questioned if any other country would come to a standstill during such events.
While retailers acknowledge the government’s security concerns, they believe that there should have been more consideration given to the stakeholders. Kumar Rajagopalan, the CEO of the Retailers Association of India, RAI, emphasized the need to strike a balance between manufacturing and selling in India and suggested setting specific timings during which shops and markets can remain open.
The Delhi government issued a notification stating that all commercial and business establishments within the jurisdiction of the New Delhi Police District would remain closed from September 8 to 10, 2023. An industry source estimated that approximately 7,000 shops would be shut down in this area during the summit.
Overall, the G20 summit is presenting both opportunities and challenges for different sectors in the National Capital Region. While travel companies are benefiting from increased business, retailers and traders are anxious about the potential impact on sales and the need for a balanced approach during large events like this.
