Delhi-NCR pollution: Tour operators, real estate agents complain of slump in business

As New Delhi grappled with its worst smog in 17 years, the head of India's largest mobile payment firm got on a plane and left, one of the thousands of professionals escaping pollution that could cost the capital and the broader economy dear. Complaining the most are the tour operators and real estate agents who are witnessing a slowdown in their businesses.

FP Staff November 11, 2016 15:19:38 IST
Delhi-NCR pollution: Tour operators, real estate agents complain of slump in business

As New Delhi grapples with its worst smog in 17 years, the head of India's largest mobile payment firm got on a plane and left the city. He is one of the thousands of professionals, who left the capital city to escape the pollution. The hardest hit are the tour operators and real estate agents who are witnessing a slowdown in businesses.

Vijay Shekhar Sharma, the founder of Paytm, left last Sunday for a temporary stay in Mumbai, worried about the impact of hazardous clouds of dust, smoke and fumes that hang over Delhi during winter.

DelhiNCR pollution Tour operators real estate agents complain of slump in business

Traffic driving through smog in Delhi. Reuters

"It became very visibly clear that it is going to be tough in Delhi, especially with young kids," Sharma said in Mumbai, reported Reuters.

"We were worried that it could create long-term (health) problems."

His company, which has considered moving from its base outside Delhi, has installed air purifiers, brought indoor plants and masks and offered extra health assistance.

Telecom operators Idea Cellular and others have allowed more employees to work from home, and arranged for buses so that car traffic is reduced — all at their own expense.

Manufactuers of air purifiers and face masks are the only ones making money. But others, like car manufacturers, are in the firing line of politicians, while estate agents and tour operators have complained of a slowdown in business.

Do you want to wait till people start dying: SC raps CPCB

"Do you want to wait till people start dying... people are gasping for breath," a fuming Supreme Court asked Central Pollution Control Board (CPCB) on Thursday, slamming it for not having an action plan ready to deal with the "emergency" smog situation and asking the Centre to come out with time-bound measures to tackle the graded level of worsening air quality.

"The response cannot be sluggish. People are gasping for breath. People are in such a situation and you are waiting," the bench comprising Justices AK Sikri and SA Bobde said.

DelhiNCR pollution Tour operators real estate agents complain of slump in business

A PTI graphic explaining the stand of Supreme Court, Delhi government and High Court.

Observing that CPCB does not appear to have any "definite plan" to deal with the issue, the bench said the board, in consultation with government, will prepare a detailed plan specifying what measures have to be taken and which authority will be responsible for implementing those recommendations in a time bound manner.

The bench said the "emergency plan" will also comprise the measures needed to tackle graded level of pollution and identify how many central pollution control units are required to have a clear picture of the air quality.

Delhi's air quality has deteriorated, even by the standards of a country with some of the world's most polluted cities. Conditions had improved by Friday, but the problem is perennial and has been particularly acute this winter.

Companies have yet to tot-up the cost of a week of coughing, spluttering and watering eyes, but local industry lobby group Assocham estimates "several billions of dollars" of new investments are under threat.

A study by the World Bank shows Asia's third-largest economy lost 8.5 percent of its GDP in 2013 due to air pollution.

Expatriates are also thinking twice about living in Delhi

Jones Lang LaSalle (JLL), a global real estate firm serving large corporates, said some clients were reconsidering Delhi as a base, as costs of working there rise.

"This is increasing their operational costs as they are being made to spend more to provide a healthy workplace to their employees," said Santosh Kumar, a senior executive at the firm.

Delhi's image is deteriorating more widely, a headache for tour promoters and a government touting "Brand India".

DelhiNCR pollution Tour operators real estate agents complain of slump in business

The real-time air quality index as read on System of Air Quality and Weather Forecasting And Research.

Some local tour operators say they are already receiving requests from overseas partners to redraw the itinerary of foreign tourists to avoid even an overnight stay in Delhi. Business travellers say they are cancelling trips.

"The ongoing tourism season, which is yet to pick up, could see a maximum hit," Assocham said.

Expatriates are also thinking twice about living in the Indian capital. JLL's Kumar said more smog could see foreigners packing their bags, a blow to real estate as well as employment.

Lisa Akerman, a Swedish national who lives in an affluent Delhi neighbourhood, said authorities needed to do much more than they were.

Akerman moved to the city two years ago with her family and has taken measures to ensure clean air in her apartment for her two small daughters. Still, the choking smog left her worried about their health.

Earlier this week, she decided to take them out of the city for a while.

"The pollution level is too much for the children," she said over phone from Goa, where she is camping with her kids. "While I love Delhi, its air quality will be a major consideration in deciding whether we want to extend our stay here."

DelhiNCR pollution Tour operators real estate agents complain of slump in business

People in masks protesting over the pollution in Delhi. Reuters

Not everyone loses

The local government has taken steps to reduce traffic amid widespread public anger at pollution that has caused choking, wheezing and breathlessness.

Licences are being withdrawn for diesel-powered vehicles older than 15 years, and authorities are considering resuming an "odd-even" scheme, under which cars can only travel in the city on alternate days depending on their registration number.

Those steps, and the risk that India's courts will impose stricter rules on emissions are a potential blow to foreign and domestic carmakers, some of whom have asked for greater clarity.

But not everyone is complaining about the smog.

Japan's Daikin has seen sales of air purifiers have increased by up to three times since the Diwali festival, and its stock that had been expected to last until March is exhausted.

To meet growing orders, the Osaka-based air-conditioner maker increased shipments from its Thai factory by 50 percent.

Nirvana India, which distributes the Vogmask face mask in South Asia, reported soaring sales.

It sold 300 to 400 pieces a week around this time last year, but since Diwali at the end of October, it has sold 5,000-8,000 a week and is seeking emergency stocks from Singapore, China and Korea.

"Earlier, only expats, patients and government departments would buy these masks," said chief executive Jaidhar Gupta. "Now everyone is buying."

With inputs from agencies

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