Tourism takes a huge blow as holidayers desert Goa

Published on

KARSTEN MIRANDA

karsten@herald-goa.com

MARGAO: The already dismal tourism scene in Goa — marked by empty hotels and restaurants for much of the recent tourist season — has now taken a complete nosedive. Over the past month, murmurs of the tourism downturn have grabbed headlines, with ministers and MLAs of the ruling BJP speaking openly about the tourism sector taking a big hit.

Stakeholders have pointed at multiple factors — from unusually high hotel rates to taxi unions that refuse to cooperate with visitors. Now the tense situation between India and Pakistan seems to have added to this, with numerous cancellations of hotel bookings and events.

“Goa hotels are further affected by the current escalated Indo-Pak conflict, with several hotels receiving cancellations for group reservations,” said a senior hotelier on the condition of anonymity due to the sensitive nature of the situation.

“Hotels are experiencing less than 50% occupancy in May, and June isn't looking too good either. Likely to be the worst quarter for Goa tourism in many

years.”

Responding to queries from O Heraldo on the issue, Travel and Tourism Association of Goa (TTAG) president Jack Sukhija acknowledged the impact of the recent developments on tourism in Goa. “Significant cancellations have been received due to the uncertain scenario,” said Sukhija.

“This is a situation expected during a conflict, and we are hopeful of rebounding strongly,” said Sukhija.

Event cancellations have also become commonplace. “Almost all events in Goa have been cancelled due to the shutdown in North Indian airports. Please note, these are events that were booked by tourists/corporates and not government or Goa-run events,” clarified an event management professional.

Stakeholders acknowledged that the restaurant sector has been affected too.

“The overall business has been slow this month; those who are coming (locals) are there, but there has been a drop in tourists, and on the weekdays, it has also been tough,” said a restaurant owner in South Goa. Restaurant owners across the State feel that the traditional weekend rush has not yet diminished so far, but they would have to observe how it goes during this weekend and upcoming weekends.

Observing another trend, a restaurant owner in Panjim said, “There has been a dip amongst locals moving out too, as the whole war psyche has discouraged them from going out at a time like this.”

This sentiment appears to extend beyond dining, as several locals have reportedly cancelled their planned holidays or trips outside Goa during this period of heightened alert being implemented by the State and Central authorities.

While the immediate impact of the India-Pakistan situation dominates the current conversation, industry stakeholders also point to longer-term challenges that have been affecting Goa’s tourism sector well before the recent escalation. These underlying issues, ranging from infrastructure problems to service quality concerns, have compounded the effects of the current geopolitical tensions.

Industry insiders draw parallels to previous periods of national uncertainty. “We’re witnessing an unprecedented wave of postponements and cancellations—especially from corporate groups—citing economic caution, India-Pakistan tensions, and internal cost-cutting measures,” an industry expert explained, adding: “The sentiment today eerily mirrors the slowdown post-26/11, where uncertainty led to immediate and widespread travel freezes.”

The cautious atmosphere has affected travel plans in both directions. While fewer tourists are coming to Goa, many Goans have also modified their travel behaviour by cancelling planned trips outside the State.

“People are just being more cautious right now,” explained a local travel agent, adding: “They’re prioritising safety and staying close to home until the situation stabilises, as we have seen how some Goans have been stranded in airports in North India and are finding it difficult to return.”

“There’s been an overall impact on tourism across India. Unfortunately, being a hugely tourism-dependent economy, we Goans will feel a greater impact,” noted an industry observer.

“Thankfully for some, it’s post the peak season, so they should be okay, having probably earned their living for the year,” he added

Resort Rio, a five-star property in Arpora, has issued an appeal to industry stakeholders, including the Travel and Tourism Association of Goa (TTAG), Hotel and Restaurant Association (Western India) (HRAWI), Goa Tourism, the Ministry of Tourism, and the Government of Goa, emphasising the resilience of Goa’s tourism industry, while acknowledging current challenges.

“As regional tensions between India and Pakistan cast a shadow on international travel sentiment, we’re already seeing early signs of impact on Goa’s tourism sector,” the appeal reads.

Beyond the immediate impact of the current situation, stakeholders have been discussing broader challenges facing Goa’s tourism sector this season. Poor infrastructure, competitive pricing from international destinations, and concerns about service consistency have been ongoing issues predating the recent developments.

“Even before the current situation, this has been a lukewarm season overall,” admitted a veteran hospitality professional, adding: “We need to look at longer-term strategies to enhance Goa's appeal, which have nothing to do with the current geopolitical tensions but are essential for our industry’s sustainability.”

These strategies, according to industry experts, include diversifying tourism offerings beyond beaches, improving infrastructure, and recalibrating pricing strategies to remain competitive with neighbouring countries—challenges that have been on the industry’s agenda throughout the season.

The TTAG President also commented on these long-term issues affecting Goa's tourism sector. “Spot on. The long-term issues which need to be addressed are technology in transport, cleanliness and reduction of single-use plastic, touting and lawlessness, and over-tourism,” Sukhija said.

Stakeholders also noted that sales teams from hotels across the State continue their efforts to salvage bookings. Nonetheless, the industry observers unanimously agree that the current situation calls for patience as national security concerns rightfully take precedence. The tourism industry remains prepared to rebound when circumstances improve, continuing its vital role in the State’s economy.

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