The traditional Pushkar Fair in early November did bring some cheers to Rajasthan's tourism sector, tourist arrivals thereafter have continued to dip. High-end heritage hotels, mainly dependent on foreign tourists, are facing 10-15% dip in occupancies. Since hotels are major source of employment for locals, employment in Rajasthan have gone down drastically. Besides, the state is home to more than 200 handicraft-making units who have been left stranded. "The entire economy of Rajasthan is dependent on tourism. In Jaipur alone, around 45% of the population depends on tourism directly or indirectly for employment," said Rajasthan Association of Tour Operators president Khalid Khan. He added that though foreign tourists have come down to the state, they have curtailed their spend on shopping.

The situation in God's own country--Kerala--is nothing different. The slowdown has impacted the state's central part, known for its paddy fields and houseboats that ply on backwaters. According to AV George, who runs a homestay named Granary and co-promoter of a houseboat `Lakes and Lagoons', business was bad in October and it has adversely affected both the homestay and houseboat businesses. The best-selling package offered by Granary comprises one night on the houseboat and another at the village homestay. However, this offering has been hit by the falling number of tourists.