Jack Sukhija
The above quote by Mark Twain would be most apt to describe Goa Tourism in light of several naysayers coming up with doomsday prophecies for it. The story of Tourism in Goa, is on the contrary, one of astonishing growth leading to economic upliftment and social equality.
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“In Goa we Trust. For the rest get Data”. This saying by Narayan Murthy, the Guru of the Indian IT Industry, if applied, clarifies the picture to a large extent.
First the Numbers-Domestic Tourism has grown to about 8 million in 2023 which is nearly double the number of the 4.5 million visitors registered in 2014. Foreign tourists at 4.5 lakhs in 2023 are about 45% of what they were in 2019. This is far more then the level of 30% reached in the rest of the country. For the season October 2024-March 2025, British charter tourists are expected to double, there is a new Charter from Poland operating and there are regular direct flights from Russia, Uzbekistan and Kazakhstan. The foreign market is expected to rebound in a significant manner in 2024 while the domestic market will continue to grow.
A destination once established as a Tourism Brand depends largely on connectivity to fuel growth. Goa is blessed to have two international airports-Dabolim in the South and Mopa in the North. The airport at Mopa is world class and significantly enhances the customer experience. These airports put Goa at most an hours flight away from most Indian Metro’s as well as provide International linkages. Excellent access by road and rail as well as a superb national highway linking North and South Goa further boost connectivity. The bottleneck at Porvorim is presently being addressed.
This connectivity puts Goa within easy reach of the Great Indian Middle class as well as the Domestic MICE (Meetings, Incentives, Conferences and Exhibitions) and Wedding market. It is our Indian Middle class which is going to be the key driver of World Tourism in the years to come. Two respective articles in the Economist (The Surprising Stagnation of Asia’s Middle Class, Nov 21st, 2024) and the Mint (What happened to the Great Indian Middle Class- Nov 24th, 2024) pegs the Indian Middle class at 130 Million Households and 520 Million People (larger than Western Europe).Abhishek Mukherjee in the Mint further bifurcates the Middle class into Tier 1 (The “consuming class” -30 Million Households, 120 million people) and Tier II (The “Aspirants”-300 Million people). The consuming class has a per capita spending power of USD 15000 (INR 12.3 lakhs) while the Aspirants have a per capita spending power of USD 3000 (INR 2.5 Lakhs). Most of these consumers are used to going on multiple vacations and short holidays. Goa remains the default and easiest destination to access. As Vikram Doctor (A resident of Goa since the pandemic and a respected columnist for the Economic Times) and Lijee Phillip put Goa has an insurmountable advantage, “It is Easy to do at Short notice” (Goa Goaing, Economic Times, Nov 27th, 2024).
The varied and excellent offerings of three of the four main components (Accommodation, Food and Beverage and Local Experiences) of the Tourism sector further adds to Goa’s allure. The two seminal events in the Goa Tourism Story were its discovery by the Hippies in the 1970’s and the launch of the Taj Hotel in 1974 at Sinquerim by the Indian Hotels Co ltd (IHCL). IHCL has witnessed exponential growth under its CEO Puneet Chatwal who took over in 2017. Its property count has more than doubled from 155 in 2017 to an expected 350 by March 2025. It aims to further double this to 700 by 2030. Goa has been and continues to be the chief catalyst of this growth first under the late Vincent Ramos, a much loved and respected son of the soil and presently under the Dynamic Ranjit Phillipose.
IHCL currently operates 16 hotels in Goa with a further four hotels (a Taj and three Gingers) in the pipeline. Its Luxury Homestay Brand, Ama Stays and Trails presently has 41 properties and is adding 19 more. The Marriott, which is the largest chain in India by room count operates 1500 plus rooms across 10 properties in Goa with five more hotels in the pipeline between 2025-2030. The growth in the luxury villa, budget guest house and homestay sector has been exponential. The number of accommodation units presently registered with the Department of Tourism is approximately 7500. Of these, 7200 are in the C and D category with an average size of 10 and 4 rooms respectively.
The Food and Beverage sector further enhances Goa’s appeal. It may rightly be called the Restaurant, Bar and Nightlife hub of India. A large number of top chefs have their presence here. The Conde Nast list of top 50 restaurants in India has 10 in Goa-a strike rate of 20% which is highly commendable considering the size of Goa.
Local Experiences, recently spruced up Heritage Forts and the World Heritage site of Old Goa further enhances Goa’s Appeal. Authentic and niche experiences are offered by local players like Make it Happen, Soul Travelling, The Local Beat, Etc. The Aguada Jail, Reis Magos Fort, The Museum of Christan Art and the recently removed Church of St John the Good are excellent heritage options to explore and experience. To summarise, Goan Tourism is alive and thriving (Vikram Doctor, Lijee Phillip, Goa Goaing -Economic times, Nov 27th, 2024) and is gearing up for a landmark year in 2024.
In the long run challenges remain- overtourism, over concretisation of its beautiful countryside, lack of technology in the ride hailing sector, a woeful public transport sector, congested roads in busy tourist areas, inadequate parking lots, cleanliness and waste disposal, clashes between locals and tourists, inadequate housing for the migrant workforce are some of these. These are typical of a mature tourist destination and can be mitigated through design solutions and visitor management systems.
Goa is largely a welfare state with an expansive Government sector. Its primary education and health care sector provides near universal coverage for all its citizens either free or at minimal cost. All this is funded largely by Public Debt and taxes generated by the Tourism Industry and its multiplier effects. An informal survey indicates that the Industry contributes largely 2500 crores in indirect taxes alone to the Central and State Exchequer. We owe it to ourselves and our fellow citizens to ensure that it continues to thrive and its negative externalities are mitigated by appropriate and timely solutions.
