The Hindu Business Line : Higher pricing: Goa may lose out on tourism

Goan hospitality industry, which is gearing to encash the hype of Christmas-New Year celebrations in this tourist coastal state, received a word of caution from the Goa Chief Secretary, Mr J.P. Singh, who said: "Goa will price itself out of tourism market due to high tariff."

Mr Singh had made the observation while addressing a economic summit, organised by the Confederation of Indian Industries (CII), in south Goa.

Hotel tariffs

Speaking on the topic of tourism and infrastructure in Goa, he said Goa hotels were pricing themselves higher as compared to destinations such as Thailand, Malaysia, or Indonesia.

He said that some groups from the UK and Canada told him that compared to prices in South East Asian destinations, Goa prices were much higher and warned that if the word spreads, Goa would lose out on tourism business.

At the same time, he conceded, the State, which has around 30,000 rooms, was woefully short of accommodation especially during the tourist season.

The hospitality industry also seems to be realising the folly of higher pricing. The President of Goa Travel and Tourism Association (TTAG), Mr Ralph de Souza, told Business Line on Friday, "November this year, the occupancy in Goa resorts was down at least by 10 per cent compared to last year."

Combined impact

"It is the combined impact of value added tax, other taxes and 8-10 per cent increase in tariffs that the hotels effected for the season. All this meant the effective prices rose by around 25 per cent," said Mr de Souza.

Especially in the aftermath of devastation of some of the leading international tourist destinations by tsunami and a few others by terror strikes, Goa got a major boost on international travel circuit.

With a booming charter season, the Goan resorts have very little accommodation to sell during the peak season of Christmas and New Year.

The special prices for the New Year package of a five-day stay in most of the Goa resorts is self revealing.

On an average the high-end coastal beach resorts in the State are selling a five-night special package ushering into new year with four nightsat $550 each and the New Year night at $1,100.

Mr de Souza said that this was true of a few top-bracket resorts. "The others have priced their accommodation at around $250-300 per night," he said.

Terror Threat

Talking about the terror threat, Mr de Souza said that these things have not affected the tourist arrivals this season and no cancellations have been reported from anywhere around the globe.

Unmindful of the repeated media coverage about likely terror threats to this destination including the latest adverse Israeli travel advisory from the Israeli Government, Goa, one of the prime destinations on international tourism circuit, is busy preparing for Christmas and new-year celebrations.

Mr de Souza said that the industry has taken the issue seriously right from the beginning of the season. Every hotel has taken adequate security measures.

"No cancellations or many inquiries were received by the hotels on account of the latest round of media coverage about the Israeli advisory to its citizens against travelling to Goa," Mr de Souza said.

The terror threat is perceived in places of mass transit system and crowded places. With no mass transit system existing in the State except for an international airport, the stake-holders of hospitality industry have been taking adequate precautions about their clientele when it comes to crowded beaches, etc., said the Vice-President of TTAG, Mr Gaurish Dhond.

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