CHENNAI: Besides, the EC has budgeted a 198-crore spend for itself, thereby making the upcoming elections the most expensive ever with a bill north of 525 crore. While these are the official limits, the actual spend by parties is expected to be substantially higher and would impact on sectors as diverse as hospitality, travel and publicity.
Travel agencies see at least 25-30% increase in business soon after election date is announced. This includes, road as well as air travel. “As the campaign picks up, air travel between Chennai and other major cities of the state will pick up by 30%. So will the businesses of taxi and tour operators. It will be hard to get a vehicle for general public,” said Madura Travel Service chief V K T Balan. Similarly, business for hotel and hospitality services will see a boom. “Hotels that have 30% occupancy currently will have 100% for the next few months,” said Balan.
“Though many industries and individuals may benefit from the spending, the overall impact on the economy in general will be inflationary as several hundreds of crores will be spent without any actual production,” said an economist.
