Numbers do matter in the hospitality industry

Do rich tourists visiting Goa benefit small businesses in the state when many of them prefer to stay in plush properties and visit only fancy restaurants and not the dive just around the corner. This thought comes to mind after the tourism minister said he would prefer the richest tourist coming to the state sometime last week. Members of the industry presented their view points

Sometime last week the state tourism minister Manohar Ajgaonkar said he only wanted the
richest tourists visiting Goa. This statement generated a great deal of noise
on social media. The minister made the statement, fair enough. Everyone is
entitled to their own opinion, fair enough. But then one can ask if the
presence of rich tourists benefits small businesses in the state. There are
several plush five star properties that dot the landscape. Many of these rich
tourists prefer to stay in these properties and relax. And if they please, they
would perhaps visit a fancy restaurant for food. What about Aunty Molly’s
restaurant that serves excellent sausage pulao or that excellent sarpotel in
that village hole in the wall.

Seraffin Cotta who heads the association for medium and small
hotels in Goa said it was important to remember that the number of rich
tourists visiting Goa was very small. He said “Goa cannot attract really rich
tourists. Those numbers are small and in a very big way tend to stay in five
star properties. I think if the minister can expend energy to attract decent
tourists who are not rich, we will do very well. Goa will be a better place. If
the rich tourist comes, some of course will stay in five star properties and
others will stay in second homes purchased by people living in Mumbai, Delhi, Bengaluru
and other cities. These deals are cracked online in those states and Goa ends
up getting nothing. Goan builders are promoting their projects saying these
properties can be given out as short term homes for high end tourists. Some are
even taking the responsibility of promoting these second homes for their
clients. This government is only doing lip service and not cracking down on
illegal tourism. It’s a mess”.

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Edwin Barreto of Sao Domingo’s Holiday Home said when the
tourism minister makes such a statement that he only wants rich tourists he was
trying to insult the state or the tourists that were coming in. He said “The
rich tourists who come here are staying in five star properties which have
slashed rates dramatically and are giving them whatever they want and ensuring
they spend their entire day in the facility. The government has not helped the
industry and has in fact increased the rates of all the licenses required to
stay in the tourism industry. These statements by ministers are beyond an explanation.”

Perhaps there is no one better than Savio Messias, a long time
player in the tourism industry. In his typical blunt manner said “Ask him if he
wants rich tourists, then why is he running dormitories and providing cheap
accommodation under GTDC. The government is promoting cheap accommodation as
well as dormitories so then how can you make such a statement? You are
subsidizing tourists who are visiting the state”. He went to say the statements
created more harm for Goa. Why would rich tourists want to come to Goa, he
asked. Where was the infrastructure to provide them with the quality of
services they would want for the money they would be willing to spend. He said
“We presented the white paper two years ago. What has the government done on it.
The garbage menace is still present, the roads are terrible. So what are we
talking about?”

Nilesh Shah, President of TTAG felt every tourist whether rich
or middle income contributed to the exchequer. He said the number of tourists
coming in jeeps and cooking on the road could be counted on one finger. They
could be accommodated on camping sites. Every tourist he said was supporting
local business in a direct or indirect manner. This he said generated revenue
in the local economy. He said the statement had generated much comment but rich
tourists like any other tourist contributed to the local economy even if they
were staying put in five star properties.

It
would be better if the state authorities follow the plans they agreed to in the
white paper. The industry has gotten even more aggressive with various
destinations around the world competing for the same business.

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