The Indian hotel and travel industry had been on an upswing with over 25% growth, but the tsunami hit at the peak season for the coastal areas when people in the north of the country take a break to escape the cold wave.
Shipping, tourism, hotels and airlines have been the most affected industries.
Plans for the new hotels in the coastal region are delayed, apart from repairing damage to a few properties, and it will take some time before things return to normal
The disaster has had some impact on tourism inland, but at the beginning year airline and hotel industry sources say cancellations have not been high and the ministry of tourism insists that visitors are still coming.
The finance ministry says that there is no major fiscal impact although it is too early to assess the damage.
Even though the tsunami destroyed the livelihoods of millions of families in South Asia, it is expected that it will shave only a few points off the region's economic growth, and many analysts are saying the effect on India's economy will be minimal.
