Goa’s Tourism Drop: Fewer Foreign Visitors Tougher Competition

16.11.2024 - 16:09 / skift.com / Bulbul Dhawan

Goa is not getting enough foreign tourists: Official Goa Tourism figures show that foreign arrivals in 2023 weren’t even half of 2019 levels: Just 450,000 visitors versus 937,000.

“Russians and Brits who used to visit annually have opted for Sri Lanka instead,” said Indian legal entrepreneur Ramanuj Mukherjee on X recently.

Mukherjee also referenced the “exploitation of tourists” and said even Indian tourists would soon “ditch” Goa in favor of cheaper destinations.

Elaborating on the “exploitation” bit, commenters were quick to share their own issues with Goa. 

The biggest complaint was around taxis. Goa had banned Uber and India-based cab aggregator Ola after pressure from local taxi operators. Tourists complained of being charged exorbitant rates by cab drivers.

Visitors on social media also said that Goa lacked cleanliness as the beaches were littered with garbage and lacked order, especially when compared to the beaches in Maldives or Thailand. 

And as Mukherjee noted, Goa faces a lot of competition. Neighboring countries offer visa-free travel to Indians. 

Jack Sukhija, president of the Travel and Tourism Association of Goa (TTAG) and owner of Goa’s first heritage hotel, Panjim Inn, acknowledged the issues.  

“The airport is in one corner of the state and sometimes, cab drivers quote very high rates. Since Goa does not have Uber, it creates a perception among travelers that they are not being charged a fair price. It also leads to time loss and is generally inconvenient.”

And competition for visitors is only getting tougher. “Southeast Asian destinations are wooing Indian travelers aggressively. These places have good flight connectivity and in some ways, some destinations are better value for money,” he said.

Still, Sukhija said the problems are overstated. 

“The situation in Goa is not grim as is being portrayed,” he said. “It is correct that international tourists to the entire country have declined and are still below pre-Covid levels. But Goa’s recovery last year exceeded the recovery rate of the rest of the country. In fact, 2023 would be called ‘a good year’ for foreign tourist arrivals.”

Visits in 2023 were up 260% from 2022. 

Puneet Chhatwal, CEO of India’s largest hotel chain Indian Hotels Company, is also sounding more optimistic. 

“We are investing in the low season in Goa,” Chhatwal said on a recent earnings call. “A lot of investment has gone in because, during the last phase of Covid and coming out of the pandemic, Goa was the first destination and like a cash cow. When we announce the results of next quarter, you will see a different Goa.”

Sukhija said that there has been a significant increase in hotel rooms, which indicates strong demand. “Around 7,500 hotels are registered with