Tourism struggles amid decline in 'spending' tourists

CLINTON D'SOUZA | JANUARY 04, 2025, 11:24 PM IST

PANAJI

Goa's tourism sector saw mixed reactions during the peak holiday season in the last week of 2024, with shack owners and taxi operators expressing concern over a drop in the quality of tourists, reduced spending, and high operational costs. Although the beaches were busy, business owners faced significant challenges between December 24 and December 31, 2024, prompting many to question the sustainability of Goa's tourism model in its current form.

Jerry Fernandes, a seasoned shack owner from Candolim, was among those who expressed disappointment over the dip in business. "We didn’t get the 'cream' of tourists this year," Fernandes said, referring to the type of customers who typically spend generously on food and services at beach shacks. According to him, while there were crowds, many visitors arrived with their own food and drinks, making minimal purchases.

Fernandes also pointed to increasing competition from street food vendors and small stalls set up just before tourists entered the beach. These vendors with carts sold snacks, other food items and alcohol, often at lower prices, drawing tourists away from the shacks. Despite raising complaints with local authorities, Fernandes noted that the situation remained unchanged. “This is severely affecting our business,” he said.

In addition to the competition from street vendors, Fernandes lamented the impact of the increasing number of water sports activities on the beaches. The noise and foul smell of petrol from water sports equipment, he noted, had driven away some foreign tourists.

Rising costs, including higher ticket prices for flights and accommodation, were also seen as major deterrents for quality tourists. Fernandes called for the government to take measures to address the situation, including better infrastructure and regulations. “The government needs to attract quality tourists, not just numbers,” he said.

Victor Pereira, another shack owner, echoed similar concerns. He described the business as slow, especially during New Year’s Eve. “Some tourists came at 8 PM, ordered just a couple of dishes, and stayed till midnight to watch the fireworks. Our revenue was only Rs 2,000-Rs 3,000 per table — far below what we usually make during peak season,” Pereira said. He, too, criticized tourists who expected free services, such as beach beds, without making purchases.

Pereira also suggested that high ticket prices for flights were driving international tourists away, leaving behind a smaller pool of lower-spending visitors. "Goa has always been a favourite destination, but with prices skyrocketing, many are opting for other places," he said.

Cruz Cardozo, President of the All Goa Shack Operators Welfare Association, offered a broader view of the situation. According to Cardozo, only about 30-40% of the tourists this year were good, spending customers. The rest, he claimed, were more interested in a "free experience" and brought their own food and drinks to the beach. “This is affecting our business badly,” he said.

Cardozo also pointed to the negative impact of social media influencers, who, in his view, were tarnishing Goa's image. “These influencers are portraying Goa in a negative light, which is driving away potential tourists,” he stated. He also voiced frustration with the entitled behavior of some tourists, who expected free services because of their wealth.

Not all shack owners had the same experience, however. Francisco Monico Fernandes, who operates shacks in North Goa, reported a more mixed business performance. “I had good spending crowds at some locations, although it wasn’t as great as last year,” he said. While he acknowledged the decline in the quality of tourists, he still managed to do well at certain spots.

However, Fernandes warned about the growing problem of unruly behavior, particularly from tourists who were under the influence of alcohol. “We have to keep an eye on their behaviour to avoid disturbances,” he said.

The taxi sector also faced difficulties, as business was down compared to previous years. Chetan Kamat, President of the All Goa Taxi Union, explained that many tourists arrived with their own vehicles, reducing the demand for taxis. “This year, many tourists came with their own cars or rented vehicles,” Kamat said.

Suddesh, a taxi operator from North Goa, agreed that business was down. “We didn’t see many international tourists this year, and many came with their own vehicles,” he said. “It’s been a challenging season for taxi operators.”

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