The price of fuel has increased causing much heartburn for
everyone. This will result in price hikes hitting all sectors of the economy.
The tourism industry in the state had experienced the rough end of the stick
for two years due to the Covid virus. Now this increase in the cost of fuel
will increase prices causing more problems for the industry. Then there is the
small matter of taxi fares in the state which have always caused much anger and
comment by tourists.
Savio Messias, a hotelier and former head
of the TTAG, felt there would be an increase in prices across the board. He
said “We will have to increase the rates without a doubt from our end. Things
are certainly getting expensive. I am sure from the viewpoint of the tourists
too it is getting tough. They will try to economize and cut down on
expenditure. They may even reduce the number of times they visit the state.
Everyone will be hit.” Speaking specifically about the possible effects on
hotels he said the smaller hotels would be hit very hard because they would not
be able to absorb the cost. Bigger hotels, he felt, were better placed to
absorb these hikes but even they would have to reconsider their position. All
this he said would benefit the illegal hotels that flourished in the state.
When asked about the effect on taxi fares, he said the taxi drivers should
remember rates in the state were the highest in the country. He said “We are at
least forty or fifty percent higher over other states. Even if there is a
nominal increase by the taxi union it will still remain the highest in the
country.”
Nilesh Shah the present President of the
TTAG felt all the costs would increase but expressed the hope the situation
would be brought under control in a month or two. He said the costs of flight
tickets had increased in the international and domestic sector. He however felt
people would still travel because they were tired of being stuck at home for
two years. People he felt would pay the small hike because they wanted to get
away from the humdrum of everyday life. When asked about taxi prices he said
tourists were already paying twenty to thirty percent and the taxi associations
would have to think twice about increasing fares. He however felt they were
stuck in a catch 22 situation.
However Rocky of the Benaulim taxi union said fares had not been
increased as yet. He said “Hotels management had informed us that it was
difficult to get business and people would not be able to pay the hike in fares
of taxis. If none comes to the hotel then how is anyone going to make money?
You have to understand we don’t get paid by our customers but instead receive
payment for each fare from the hotel. Most of the trips are to airports,
railway stations or even bus stands. Not many people go out in cars to see
places now.”
Padma Nair who runs a hotel said the price hike would not affect
him because he did not have a restaurant in his hotel. He said “There are so
many food outlets in the area. Our guests have the option to visit them or
order via any of the services that can provide them food from the local
restaurants. They can be delivered at the reception. We provide complimentary
breakfast and no its price will not increase”. When asked about the possibility
of taxis increasing their fares, he said that was something they would have to
decide.
However another hotelier who did not want to come on record said
prices should not increase because of the hike in fuel prices. He said room
rates increase or decrease due to demand and supply of rooms. That was the only
factor. Anyone doing it now was just taking advantage of the situation and it
was not good business. With regards to the possibility of the increase of food
rates, he said no hotel increases rates mid season. And finally about taxis, he
said fares would go up because of the fuel hike. He said it was a historical
problem no government was able to solve and no one would be able to solve. He
said even if the fares were the highest in the country, fares would increase
without a doubt.
Perhaps
the days to come will show us all how this situation will evolve.
