3 August 2013

 Bang for the buck

The Goa Tourism Department in association with Goa Tourism Development Corporation is on a spree to promote Goa both domestically and internationally by engaging PR and advertising agencies that have staged and are in the process of staging Road Shows and Goa Evenings. It is a good idea to promote Goa to up the stakes, especially after mining has been milked to a stop. But it is an even better idea to package Goa well before sounding the bugle to welcome tourists, especially as far as pricing is concerned.
Though internationally there are price wars to offer tourists holiday packages at the most competitive prices, considering all the factors, including infrastructure, Goa is a costly destination in terms of room tariffs, food and other holiday indulgences.
Popular internet portals offer average holiday packages to Goa at small hotels @ Rs 12,999 for four days/three nights on a twin sharing basis, with breakfast. The range goes up to Rs 18,999 for the same package at plusher resorts and hotels. There are even Goa hotel packages ranging from Rs 22,999 to Rs 26,999 for four days/three nights, while the five star hotels in Goa offer packages at Rs 34,000 for four days/three nights (without air fare). Few if any apart from the tony resorts cost in sightseeing expenses.
Suffice it to say that domestically there are many destinations which are much more affordable. Kerala which has equally scenic locations, rich cultural traditions, a mega festival and, crucially, much better organized and genuine ayurvedic health/wellness tourism apart from a plethora of other leisure activities to undertake while on holiday offers seven days/six nights at Rs 19,999 for small hotels. Cheaper options are also available. The food is Kerala is relatively nourishing and cheaper than in Goa, as also internal travel whether by taxis or public transport. This is also the case with other domestic tourist destinations such as Madhya Pradesh, Rajasthan and Tamil Nadu though these destinations are landlocked and devoid of beaches. Of course, other destinations such as Jammu and Kashmir and Himachal maybe equally, if not more expensive than Goa. The idea is not to suggest that we go cheap ~ on the contrary! But it’s the bang for the buck, as it were, that is the issue. 
At the regional level destinations such as Sri Lanka, Maldives, Indonesia, Malaysia and even Thailand are offering equally competitive beach holidays in an organiszd and professional environment in terms of the hospitality industry itself and the supporting and leisure services. A holiday package in Nepal, for instance, would cost Rs 27,000 all expenses paid. Thailand offers five days four nights @ Rs 19,999 including roundtrip airfare, accommodation, breakfast, sightseeing and transfers at small hotels. On the luxury holidays side, one can lease out villas accommodating 6 to 12 people for prices ranging from Rs 24,000 to Rs 48,000 per night.
Tourism is a multilateral activity, comprising stakeholders who have their own demands. But why are we adding to chaos that tourism has come to signify in Goa? The government as the regulator has to streamline taxes so that higher taxation does not make the industry services costly. Similarly, taxes on food and other items have to be structured in such a way that they do not force the tourism sector to bill its services higher, compared to other competing domestic and regional tourism destinations. 
Apart from the financial aspects of pricing hotel accommodation and services, there has to be discipline among supporting services such as taxi operators, tour guides, hotel staff and local vendors as well as among those charged with implementing the rules. The branding and packaging of Goa is important but Destination Goa is, after all, an experience. No matter how the road shows are packaged, it is important to ensure that tourism is competitively priced ~ not to attract the riff-raff but to ensure bang for the tourists’ buck and make them return customers so that in the long term the industry sustains itself.

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