The tourism sector in Goa has not been having it easy for the last couple of years. 2020-2021 tourism seasons was hit by Covid. Just when things started looking brighter, Russia invaded Ukraine in February this year. This meant the flow of Russians who come in large numbers, hardly trickled in. If these weren’t enough, the Government of India’s tweaking of visa rules hit the travellers from United Kingdom very hard. All these chains of events have left the tourism sector on a very sticky wicket.
A lot of British tourists have either postponed or cancelled their plans to visit Goa. This has various allied sectors very hard. The hotels are not getting enough bookings, which is having a cascading effect on other areas connected with hospitality industry.
Nilesh Shah, President of Travel and Tourism Association of Goa (TTAG) said after being hit by Covid; Goa has been dependent on domestic tourists. Certain segments in Goa have been doing very well in Goa, especially the star hotels.
“But one vertical that was suffering were the small hotels. Last year it was supposed to start but due to the Covid third wave, it could not take off. Not the UK visa issue has hit us hard. Earlier UK was on the list of countries which were issued e-visas, which was taken off due to some bilateral issues between Indian and UK government. We had requested that either speed up issuance of visa or provide e-visa,” Shah said.
When the new State government was formed, this matter was taken up again. Even the chief minister is aware of it, the Home ministry; this matter was even taken up at the Tourism Conclave held at Dharamshala. But not much headway could be achieved.
“Why this issue is so relevant because we get the bulk of our revenue from foreign tourists, who come in chartered aircrafts. It was in 1980s when foreign tourists started coming by chartered flights. Because the foreign tourists started coming, we are having this cosmopolitan look and people are coming in. Once, chartered flights stop, situation becomes very difficult for the tourism sector in Goa,” he said.
He said that Sri Lanka has already received its first chartered flight of foreign tourists. Sri Lanka is a competitor for Goa in terms of foreign tourist market. If not Goa, then they will go to Sri Lanka.
“It is a challenge and we have to address it. Of course, our focus will remain on domestic tourists because there are challenges regarding obtaining visa for foreign countries. There are different segments of domestic tourists who are attracted towards Goa. As our CM says, Goa is the tourism capital of India. We are most sought-after destination for tourism because Goa is the only State in India where you can come round-the-year,” he said.
However, one needs a mixture of tourists. The advantage of foreign tourists coming by charter is that they stay for a long period, due to which their spending is more, which adds to the foreign exchange.
“It helps hotel industry to fill up their rooms, which is difficult to do with only domestic tourists for a long period because they for a very short period, at the most 10 days,” Shah said.
There are fundamental small areas of concern. Is the nature of tourism changing? The pressure on tourism is also increasing because bulk of the tourism activity is concentrated only in few pockets of Goa, without moving out to other areas, which are equally beautiful.
Joseph Barreto, Managing Director of Passive Active Tourism Pvt Ltd, who pioneered hinterland tourism, said that the Goa is a beautiful State, which has the combination of sea coast and the lush green hills of Western Ghats. Plus, there are historically important monuments which represent Goa’s rich heritage.
“People need not stay at one place only. If they really want to explore Goa, they have to visit the hinterlands. But the major challenge to make this happen is that tourists don’t consider the hinterlands of Goa as part of the State, for example, the wildlife sanctuaries. Then guests may stay there for one night, but the next they would want to go back to “Goa”. We have to tell them that this is very much part of Goa,” Barreto said.
But that doesn’t cut the ice with tourists as it is ingrained in their minds that Goa is nothing but the beach. Hence, the concentration of tourists is mostly restricted in the coastal belt.
When asked about the reason for him to see revenue potential in hinterland tourism, the MD of Passive Active Tourism company said it was his passion that led him close to nature, which became part of his business model.
“I capitalized on this. The travel agents whenever they need anything related to hinterlands, they think of me. But the reason why foreigners don’t want to explore the forest areas because they are concerned only with the beach side, especially for domestic tourists. Foreign tourists during their stay here, once in while want to do some activities in the interiors of Goa. They want to explore these areas of Goa and that’s why we used to expose them to the actual parts of Goa generally not known to tourists,” he informed.
When we look at the tourism strategy for Goa, what the government seems to be doing is thinking very big in terms of infrastructure like building highways, ropeways and convention centers among others and spending crores of rupees on it. Have we lost a trick somewhere, in the sense that was Goa meant for such other countries or places of the same nature? They are not over-exposing themselves by bombarding themselves with infrastructure. So, are we bombarding ourselves with infrastructure, which is proving detrimental to the basic charm of Goa?
Mark Mendes, Director of Big Blue Road responded by saying that the government and the private sector is looking at market segmentation.
“Looking at the entire tourism scale, you segmentise the market. It will serve two kinds of customers – one who want matured facilities and others who will go for something which is more palatable. Besides market segmentation, there is also product segmentation in which you have historical culture, heritage and even beach tourism. Once you have that mix right and are able to focus on it then you will have an array of products, where if one fails the other one would support you,” Mendes said.
When you are talking about development, from the larger perspective, certain amount of development will be required. IF you widen the roads or build new accommodation for the guests, it will take out some amount of nature.
“The balance between development and maintaining the ecology and sustainability of destination is very important. What is very important to note that the United Nations’ Sustainable Development Goal-30 for 2030 has been applied in various places like the Mopa International Airport. Definitely we need a balance and if we don’t segmentise our market, we will not be able to get the balance right, which is very important,” he said.
When asked about the issue of tourism strategy, splurging on money on infrastructure, whether Goa gets enough footfalls to fill the large number of hotels that have come up in Goa and are we putting the pressure back on the coastal belt, Siddharth Savkur, CEO, Kamaxi Group said that the over a period of time, the Goa Tourism has ourselves in a hole by only promoting only coastal experience.
“Goa and tourism have been synonymous for decades and when you talk about tourism, it is only about the coastal belt. It is all about sea, sand and alcohol. One will be surprised to know that only four per cent of Goa’s land mass is sea-facing. So much more potential lies inn hinterland tourism. But all the hotels are coming up in the coastal belt, therefore the pressure on infrastructure is high,” Savkur said.
According to him, everyone is trying to cater to the tourists’ current expectations from Goa, which is beach-front. So, hotels want to set up facilities near the beach. GTDC had planned a resort at a beautiful location near the Mayem Lake by involving the private players. But there was very lukewarm interest. It is still lying undeveloped.
“The pressure will always remain if we continue channelize all our energies towards a small chunk of beautiful destination. Bali for example, is very much similar to Goa in terms of size, location, topography and the type of tourists. There are beaches like Baga which is buzzing with tourists. But at the same time, they have town named Ubud, which is located in the hinterlands on a hill. There is focus of art, culture and artists. Tourists come there to go on artist walks,” he said.
“I went there and thought it resembled Ponda. The spice farms, temples – it is very similar. How many tourists go to Ponda? Who is to be blamed? The common complaint is the tourists don’t prefer hinterland tourism and rather go to Calangute and Baga. Who has driven them there? Goa tourism has always been only about beaches. The strategy to promote Goa has always been beaches. That is why there is always rush to these places. If the tourists are told properly about the facilities in the hinterlands, they will surely go,” he said.
Every Tourism Minister speaks about Tourism Policy. It has become such a cliché that nobody even takes that activity seriously. When will we have a proper Tourism Policy? Has the government rolled out any official tourism policy?
Nilesh Shah said that’s what the government has come out with. There is a policy in place. But certain things need attention, which is not happening.
“We have to first get our basics right. Why people are coming to Goa? Suppose they are coming for sand, sun and sea. How many middle-class tourists are going to Baga and Calangute? Lot of tourists are now avoiding these places. A particular segment is moving out and the day is not far when others will also start moving away. What we have to do is get our basics right like cleanliness, hygiene which is very important. We have issues of garbage, sewage problem. It needs to be sorted out,” Shah said.
He said that the people employed casinos take up 500 plus flats for staying. Ultimately it boils down to overall Goa’s infrastructure. Those basics need to be done right.
“Mopa has already been done. North-South connectivity has been done. But there has to be planning in toto. When Mopa airport comes up, the traffic bottleneck at Porvorim will become even more congested, while the flyover still some years away. Ad hoc policies affect tourism,” he said.
Speaking about hinterland tourism, Shah said that the government last year allocated Rs 5 crore for developing hinterland tourism circuit. One circuit is Ponda. Our take was we should not push certain things, just because the tourism department wants it. It has to be people-centric. If the community wants it, only then have such a project.
Shah said when he entered the travel and tour business way back in 1990s, there used to be North Goa and South Goa tours. In North Goa tour, there were temples and Churches as part of the travel itinerary. Now this is not happening. There used to be proper river cruises showcasing Goan culture.
“We have to get back to our culture. Certainly, we need to give what customers want. But we also need to promote our culture in the right manner. The new millennial crowd wants exponential tourism that goes beyond sea beach and looks at areas like heritage walk. We are reaching there. The question is how we market ourselves,” Shah said.
When asked about the changing pattern of tourism in Goa over the years, Joseph Barreto said that initially a lot of foreign tourists used to come and spend a lot of money. Over a period of time that expenditure has gone down.
“Earlier when we use to take them to villages and they would give good amount in tips. But that doesn’t exist anymore. On The other hand, the domestic tourists have slowly started exploring the hinterlands, but that too for day trips and not for staying overnight. They basically come to Goa to party and enjoy themselves,” Barreto said.
He said that he had been to Daman and Diu recently, where most of the most of the people from Gujarat would go there just to get drunk.
“To get the people to the jungles, we have to be innovative. People come here to enjoy. We have no loud music policy. We have cultural dances where people from State of Goa and the culture of the migrants from other States like Bihar and West Bengal also assimilate with the Goan art forms, which are liked by the tourists. But since the domestic tourists come for party, providing them with loud film music becomes a tricky proposition,” he said.
One subject that evokes lot of reaction is how expensive Goa has become. The taxi fares are hugely costly; hotel tariffs are becoming dearer as the time goes by. There is lot of rooms, hotels, prices are going up but the occupancy is not going lower. What does it tell us? Is it that Goa attracting a certain segment of high-end tourists looking for a specific kind of accommodation, restricting themselves to the same hotels and resorts, eating in the same kind of restaurants in the vicinity around Anjuna, Baga, Morjim and Assagao? Is the tourism pie concentrated in that particular zone, not only in terms of where you stay and where you eat?
Siddharth Savkur, CEO, Kamaxi Group said that it is all about and demand and supply equation that dictates the scenario.
“For every hotel charging ‘expensive rate’, there are enough customers who are paying for it. That is why the hotels are able to get away with it. I think it is ‘make hay till sun shines’. The North Goa coastal belt has created a polarizing effect on the tourists. There are bunch of tourists who want to be close to the beaches and then there are another set of tourists who want to stay as far away as possible from this chaos. This is giving more opportunity to the hotels located near and far away from the ‘hub’ to do well,” he said.
Savkur added that the hotels for a long period have taken out a leaf out of airlines’ books and adopted dynamic pricing.
“As a dynamic pricing policy, if you can get your hotel sold out at Rs 10,000 you push it to Rs 15,000. You just push the envelope till the market says no more. Post pandemic, Goa had one of the best recoveries in the hospitality space. It came from the pent-up demand and revenge tourism. But revenge tourism has a shelf life and we are seeing that it is waning now,” he said.
According to him, those who were desperate for a family reunion or pending marriage are done with it. Now is the real challenge for the hotels and the question is whether they can sustain the high cost in the long term. This will be known this winter.
“We keep talking about the pre-pandemic levels. I just want to remind everyone that even during pre-pandemic era, it is not that everything was rosy. It was still a challenge to sell Goa as a destination. There were still challenges marketing wise, perception wise. It is not that everything was honky dory in 2019 and then the pandemic hit. Is that the level we want to be at? Are we happy to be at pre-pandemic level? The pain of the last two years has made us forget the pain of pre-pandemic era also,” the CEO of Kamaxi Group said.
Taxis and the allied issue of mobility in Goa is a big challenge for tourists. That has actually led to other issues. The taxi lobby managing to push back any attempt to bring in app-based taxis or not having proper transportation system where one can get into any transport of the person’s choice is a matter of concern.
Although now the Chief Minister and transport minister are speaking in unison on need for app-based taxis, it will be too little, too late as the damage is already done. How far the issue of unregulated taxis and exorbitant fares has actually dampened the spirit of tourism in Goa?
Savkur said that he was feeling optimistic and positive after hearing the government speaking in one voice regarding support for app-based taxis.
“For years there hasn’t been any consensus on this contentious issue. It is not that easy to create a local taxi app. The Ubers and Olas of the world wouldn’t have been as successful as they are if everyone bunch of taxi operators could set up an Uber-like version for themselves. It is not that simple. So, I am glad that that the government is now talking about bringing in apps. But it constantly amazes me that one small lobby can hold entire State to ransom with the frequency and ferocity that they have,” he said.
There have been taxi strikes in the idle of peak season, blocked hotel gates. It is surprising that such a small number can hold Goa to ransom. I only hope that the words related to app-based taxis translate into action, Savkur added.
“For a tourist destination, if you are not going to facilitate easy movement of tourists, it is going to increase rentals, rise in self –driven tourists coming in and that is going to cause traffic issues, especially in weekends. This is already happening and that is because the taxis in Goa have become notorious because of their high-handedness,” he said.
When asked about the issue of high costs and its impact on tourism sector and shouldn’t have the taxi issue put in place as a matter of policy rather than leaving it for negotiation between individual minister and the taxi operators, Mark Mendes, Director of Big Blue Road said that the taxi issue is a thorn in the flesh of not only tourism, but also Goa per se because it is a situation that is not like by anybody.
“As regards to transportation sector, if you do not have a fluid and smooth transportation system, then you are missing the point completely. People bringing in their personal vehicle add to pressure on the infrastructure and causes pollution. This is again something which we do not want. So, I think if we can resolve this issue and bring in some serious understanding between the institution, the taxi union and the private sector, that would be the best for all of us,” he said.
“Coming to the pricing issue, he said that it is a demand and supply issue and this will continue, fortunately or unfortunately because of the visa issues abroad. Airline cost is another issue for travelers. With this happening, hotel prices in Goa will continue to rise until and unless the international market does not open to the level it were in 2017 and 2018 we will see the prices continue to soar. Or if the infrastructure situation changes in Goa with larger number of hotels coming up, which does not happen overnight, only then prices can drop,” he said.
Why can’t Goa put more stress on three star hotels and other hotels, more eco-friendly hotels? Why haven’t we got it right?
“Accommodations have to be viable. In hilly regions there are resorts with 15-20 rooms, which is in demand there. But in a place like Goa, with the kind of land costs and other expenditure involved, it is unviable to have small hotels here. There were small hotels in Goa. But it has been a difficult proposition to operate small inventories. If you see the trend amongst hoteliers in Goa, facilities which were family-run, are now managed by international hotel chains. Also, revenue generation is a problem for smaller hotels,” he said.
While there are a number of challenges for tourism sector in Goa, not everything is gloomy. Lot of people are there who are doing things in their own way in order to keep the tourism wheel moving, but are not getting the due recognition. It is now up to the administration to plug the holes in tourism boat and ensure that quality tourists come to Goa.
