Team Herald
PANJIM: The COVID-19 ‘earthquake’ has sent the tourism industry in Goa into a loss of around Rs 2,000 crore to Rs 7,200 crore approximately, while the potential job loss is 35 per cent to 58 per cent.
A report on “Coping with COVID-19: Survival and Revival of Goa’s Tourism Industry”, prepared by Goa Tourism, and assisted by the Research and Analysis unit of GTDC and KPMG Advisory Services Pvt Ltd has been prepared based on a sample survey comprising over 600 responses from various tourism stakeholders.
The report, released by Chief Minister Dr Pramod Sawant claims that the COVID-19 crisis represents a genuine earthquake for the tourism industry and the aftershock of the pandemic is still difficult to be fully imagined.
Assessing the impact of the pandemic in Goa, the report states that the abrupt disruption brought by the lockdown and the absence of tourists has dried down most of the income sources of tourism businesses in Goa, therefore implying a massive loss of earnings.
To assess quantitatively the losses incurred by the different segments of the tourism industry, several factors such as the lockdown lasted for a period of 70 days, from March 24 to May 31, 2020; distinction between businesses operating throughout the year and those closing down during the usual low season which happened to start in the midst of the lockdown (April-end), etc were considered.
Typically, it was found that 22 per cent of hotels were usually closed from May to August and the seasonal factor happened to be more prevalent among guesthouses which operated on average for only 10.8 months of the year against 11.9 for five-star hotels. Hotels discontinuing their activities at the end of the season would have anyway not generated revenue post April as this aspect was also taken into account while estimating losses.
“Overall, in the whole tourism industry, losses during the lockdown reached Rs 2,062 cr,” it said adding that revenues will remain low for some time.
The joint survey also mentioned that the lifting of the lockdown, planned for May 31, 2020 across India, did not automatically reinitiate tourism activities in Goa and that continuing travel restrictions, limited purchase power at a time of a harsh economic crisis leading to cutting down on discretionary spending, fear of the
resurgence of the pandemic, etc will continue negatively affecting travel patterns.
Based on several aspects, it was found that the total accumulated loss of earnings in the season 2020-2021 would be up to Rs 7,239 cr.
In addition to a loss of earnings, industry stakeholders also had to face the burden of continuing fixed expenditures during the lockdown. This included power and water charges, salaries, food for stranded staff, rent, EMIs, website management charges.
These statistics, as per the government, have helped significantly to plan ahead in its conscious effort towards mitigating the challenges posed by COVID-19 and further transforming Goa as “Sustainable Tourism Capital of India”.
It said that on the basis of the study on tourism industry stakeholders, the government was able to streamline the unregulated hotels/accommodations in the State and has enabled to develop a process to allow only registered hotel accommodations to commence activities. COVID-19 specific SOPs were also developed as part of the report and implemented by Tourism Department, enabling tourism industry stakeholders to recommence their respective business in a safe manner.
“Protocols for incoming tourists to follow the safety procedures were also developed and circulated. These protocols were strictly implemented which enabled the State to do away with mandatory testing and quarantine. This also enabled Goa to become the first State to apply and receive ‘Safe Travels Stamp’ from WTTC (World Travel & Tourism Council). This has boosted confidence among the travellers visiting Goa,” a statement issued by the government said.
With the need to save jobs, State preparedness and industry requests, the State opened tourism in July 2020 making Goa the first State to re-start tourism. Efforts put in for safe re-opening of the state for the tourists was appreciated by notional & international organizations such as MOT and WTTC.
