British tourists are not deterred by the Mumbai attacks and are packing off for their planned India holidays. Tour operators say its not security concerns, but economic recession that the industry is still grappling with. Bargain holidays seem to be the order of the day.

Here is a verbatim transcript of Akanksha Banerjee’s comments on CNBC-TV18. Also watch the accompanying video.

Economic slowdown hits tour operations

After a temporary setback in the immediate aftermath of the Mumbai terror attacks, British tourists are still packing off to India for their planned holidays this winter, although the numbers are lower than previous years. Tour operators say that's due to the economic slowdown and not due to security concerns.

Philip Grierson, Marketing Director, Cox & Kings (UK) said, “People who are booked are traveling, there are very few cancellations. But we have seen the business slow down patch - a reduction of about 25 % in the last three months for India.

Last year over five million foreign tourists came to India and the sector grew by 14%. Following the downturn, however, this year the revised growth target is just 5% the outlook, though is positive.

Vivek Angra, GM, Travel Corporation of India (UK), said “Growth will slow down, but won't be a negative growth.”

Experts say that it's the business travel market that has seen a significant setback. To counter that, hotels and airlines could help by revising their costs and making their rates competitive. Everyone is looking for a good bargain in these times.

Pricing concerns

Grierson said, “We have to get better prices from airlines and hotels. There is pressure on hotels to revise prices to comparable destinations.”

The pace may be slow but outlook for India is steady and strong.