Russians make up a very large part of foreign tourists that arrive in Goa. Hence, if the prices
keep falling for oil in the international market, the Goan economy (tourism) will take a hit as this
trend directly affects the Russian economy.
Why has the oil price dropped?
Low demand – U.S which earlier was one of the largest importers of oil has started its domestic
production from shale oil, which was not possible a few years ago due to technology constraints.
On the other hand, China has seen a decline in economic activities or rather suffered a market
slowdown. Hence its requirement in comparison to previous years is less.
Increase in production – Organisation like OPEC (Organization of the Petroleum Exporting
Countries) who had witnessed a decline in oil production earlier has seen an upward climb.
Much of this trend of flooding the market with oil is due to political as well as economic reasons.
E.g. A trader sells material cheaper than his rival, only to push the rival out of business.
How does Goa get affected?
Russian tourists play an important role because they make up a large part of international tourists
to Goa. Since The Russian economy heavily depends on revenue from the energy exports, any
slump in demand will affect it severely.
This will add to the woes of Goa because Russians will not be able to take holidays to state.
Losing the Russian tourists has surely created economic setbacks for Goan tourism.