World Tourism Day 2022: Worried about your finances while planning a holiday? Check what experts say

Today is World Tourism Day. World Tourism Day has been celebrated on September 27 each year since 1980. September 27 marks the anniversary of the adoption of the Statutes of the Organization in 1970 which paved a way for the establishment of the United Nations World Tourism Organisation (UNWTO) in 1975. The UNWTO) is responsible for the promotion of responsible, sustainable and universally accessible tourism. This year, the official World Tourism Day 2022 celebration will be held in Bali, Indonesia highlighting the shift towards tourism being recognized as a crucial pillar of development.

According to the latest UNWTO World Tourism Barometer, international tourist arrivals almost tripled from January to July 2022, registering a growth of around 172% compared to the same period of 2021. The indicators showed that the tourism sector has recovered almost 60% of pre-pandemic levels. 

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This year, the theme of World Tourism Day or 'Vishva Paryatan Divas' or 'Vishwa Paryatan Diwas' is 'Rethinking Tourism'. So, let's rethink tourism as not only a method of recharging ourselves but also make it a part of our financial planning. Experts suggest that investment for a holiday allows taking some risk and thus there are multiple investment avenues that can give good returns.

"If you are planning an investment for one year, then the Recurring Deposit is one of the options. However, it offers a low rate of interest. Since saving for a holiday is a financial goal that allows taking a bit of risk as a change in the budget is permitted, one can also do a SIP in conservative hybrid funds. Then there is a category in mutual funds called Equity Savings Fund (ESF). In the ESF, the allocation to the equity remains low and thus it comes with low risk.  Investing in the ESF for conservative hybrid funds can give better returns when compared to an RD," said Pankaj Mathpal, Founder and Managing Director, Optima Money Managers.

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However, this is the short-term investment goal. Mathpal said that an investment of up to five years from now can help plan a good holiday every year from the fifth year onwards.

"Say if you start investing per month now for the next five years, then you can invest in Flexi Cap and Multi Cap funds that give better returns in a long period. These are diversified mutual funds and give better returns. So, if you continue investing, you can use your first year investment for a holiday trip in the fifth year and can plan a trip every year if you continue your investment as you will keep getting good returns," said Mathpal.