The local consulates of these five countries have issued travel alerts to their citizens, cautioning them about terror strikes during Indian festivals and other peak holiday periods. These alerts are not expected to be lifted before January as per a report in Business Standard by Swaraj Baggonkar & Aneesh Phadnis

The five countries together account for over 35 per cent of annual foreign tourist arrivals to India, of which the US share is over 16 per cent.

The Australian government advisory said “terrorist attacks could occur at any time anywhere in India with little or no warning". The cautious approach stems from the fact that India has been subjected to two high-intensity terror strikes already this year, where at least 37 people lost their lives. Further, Indian security agencies have issued terror warnings to busy airports, railway stations and tourist spots frequented by foreigners.

Observers said the development might lead to cancellations in the hotel and tourism industry.

Rajji Rai, South Asia director of United Federation of Travel Agents Association, said the travel advisory would lead to a negative impact on inbound tourism. “In the past, such advisories have resulted in cancellation of bookings by foreign tourists. This is the peak travel season and cancelled bookings will have to be filled up by domestic tourists.”

Several companies operating popular hotel chains in India start accepting bookings for the peak November-December-January period after July. Many domestic hotel brands such Hotel Leela, Taj Hotels Resorts and Palaces and Oberoi were witnessing a favourable uptick in advance bookings.

K B Kachru, executive vice-president, South Asia, Carlson Hotels, said, "People who have made travel plans to India will tend to look at this more cautiously. There will be more anxiety and caution as has been the case whenever there has been an alert like this."