Goa, one of the world's best known
beach towns is recommended as India’s must-go tourist destination. In 2005,
2006 and 2007 Goa boomed. And so did the hotel rates in Goa! The hotel rates
were hiked to be in sync with global standards that the international tourists
were familiar with.
While Goa boomed, the sector’s value as
a destination was diminishing. Nobody paid attention to the long-term future of
Goa as a premier destination; they were too busy selling out to cheap charters.
Hoteliers kept creating bigger resorts and the best hospitality brands made an
entry upping the price point.
Recently, Goa has reported 50% YoY (Year
over Year) downturn in tourist arrivals, domestic as well as international.
What’s the reason? Let's visit some
factors that Goa has failed and contributed to the downfall in the number of
tourists.
- Value Proposition: Hotels became expensive. Other services around also followed the trend and hiked their prices without keeping pace with reality and value proposition. The restaurants, transport to even a roadside barber shop (around a tourist-filled area) turned too expensive and devoid of any real value. For example, I was forced to take a bad Maruti Omni from a local union managed car hire service in South Goa at 50% higher tariff than what I would pay in a state like Kerala. The driver was inebriated and did a very bad job of anything he was told to do.
- Variety: Goa has beach and resorts. Goa has always been a big party. Eco-tourism, temples, village tourism, birding, adventure activities and other aspects were never highlighted well.
- Cheap Tourism: Goa became the hub for cheap group tourism thereby shooing away the classy up-market tourists. Initially, cheap flight costs provided cheap tourists; as the rates of domestic low cost carriers escalated, the inflow of tourists looking for a cheap deal dried up.
- Excessive development: Hotels, hotels and more hotels. North Goa lost its greenery to tourism in the last decade. The local development authorities lost track of what was happening and local developers ran amok. Some of the hotels built on the beaches seem to obviously violate coastal regulation zone rules but nothing has been done about it. At least till now.
- No vision: Goa lacks the tourism vision of Kerala. The government is toppled regularly, and the lack of any coherent long-term policy on tourism and development is making everything too piecemeal.
- Security and Illegal activities: Beaches and hamlets in Goa became famous as hotspots for illegal tourism. And there were a couple of incidents which questioned the basic security of the tourists in Goa. The ill feeling resulted in first time tourists and umpteenth time repeat visitors both gave it a miss.
Answers are not easy. The biggest
problem Goa will encounter is that of overcapacity. Charter arrivals frequency
may get restored in a couple of years solving occupancy problem from November
to March. However, April to October will still remain a concern. Hotel
operators along with the local government have to create a compelling value
proposition for Goa to be again called a 365-day holiday destination.
For more details, visit - www.nivalink.com