I'm on vacation in India right now, and the impact on tourism has been ridiculous. We've had to spend our time being driven to dozens of ATMs in search of one that's open, and even when we find one we can only withdraw ~$100 worth of notes (even using 2 different debit cards). That might be enough for a typical Indian's cash needs, but it's clearly not enough for us to be able to pay for meals, activities, lodging, and transportation for the day.
It's frustrating because it also forces me to be more tight-fisted with my money than I would like to be. The amounts aren't consequential to me, so I would ordinarily tip very generously. In this situation, I've had to be somewhat stingy with tips in order to have enough money to eat and pay my bills.
It's a stressful experience for tourists, and it's almost certainly costing workers in the tourism industry a significant amount of money.