Occupancy in hotels in Goa and parts of Kerala this winter is 20% higher than in 2011, with tourists from Russia, Ukraine, Poland, Hungary and other Eastern European countries pouring in. "This is bonus traffic for the two destinations," says Vivek Nair, vice chairman and managing director of The Leela Group, which runs luxury hotels in Goa and Kerala. Occupancy at those properties have risen 20% and rates have gone up by 10-12% year-on-year, he adds.

Goa expects to welcome more than 5 lakh tourists this year, compared to 456,000 last year and 445,000 in 2010. Tourist arrivals from traditional markets such as the UK, France and Germany have dropped significantly since the slowdown of 2008. Local hotelier Ralph de Souza, who is also president of the Travel and Tourism Association of Goa, says business for his hotels is up 15-20% this year. "This is helping us keep our head above water," he says.