Industries minister Mauvin Godinho was at it last week claiming that the decline in tourists arriving in Goa is due to the high cost. He suggested that from hotels to travel to the State, to travel within the State is all significantly higher when compared to competing destinations. Noted businessman Shrinivas Dempo too was speaking his mind when he called for making the State “more tourist-friendly with bus routes linking major attractions with airports and railway stations". “Tourists and business travellers boost Goa's economy. All over the world, easy travel equals happy visitors. If the public bus transport system is efficient, more people will use it. Less two-wheelers and vehicles on the roads will make our streets safer, and save lives,” Dempo said.
Clearly, a worry has set in amongst Goa’s tourism stakeholders that Goa could witness a downturn in tourism that is going to endure for the months and years to come and not just a temporary dip as many are hoping it will be. Both Godinho and Dempo are right in their diagnosis of the problem. But the problems are of the government’s own making and both the government and industry should own up to the missteps that led to where we are now.
The day Goa agreed to support the decision to have a uniform GST across the country for the same goods and services, the State lost its ability to increase or decrease taxes based on local needs and instead is now reduced to a small voice often drowned by larger States when it comes to determining the tax rates for things like hotel and restaurant charges. As a result, Goa can no longer increase or decrease rates in the tourism industry depending on the tourist season or compete with rival destinations like Sri Lanka or Southeast Asian Countries for hotels or restaurants every year depending on demand or lack thereof.
None of this was unforeseen. At the time the GST was being rolled out critics had raised these exact problems that they said would result down the line. However, eager to toe the party line -- of which Godinho was a crucial part of -- unquestioningly supported the constitutional amendment telling the House that the amendments would benefit small States like Goa even more than they would benefit large States. The consequences are being felt now.
Similarly when the Goa government neglected an efficient and reliable public transport system and instead spent thousands of crores of rupees on superhighways that only really benefit car users -- who are among the rich layer of society -- and forced people to use personal vehicles endangering their lives and adding to traffic congestion -- there was no one to question them.
No one in the industry demanded that the government promote public transport instead of mega structures that serve to change the character of Goa and do nothing significant to contribute to the tourism industry.
Today the tourism industry and the State are suffering not just because tourists are choosing other destinations, but also because when they do come here they shun patronising local operators like taxis and instead either arrive by their own vehicles or choose rented vehicles adding to the dangers on the roads.
It would be wise for the government and industry to own up to their own shortfalls rather than blame external forces for the state of affairs.
