The Travel and Tourism Association of Goa (TTAG) has voiced strong opposition to the state tourism department’s proposal to introduce a 2% ‘tourism development and sustainability’ fee. According to sources within the TTAG, the fee is deemed “uncalled for” and warrants immediate reconsideration.
The introduction of a new tax by the tourism department, aimed at financing sustainable development projects, has sparked consternation among industry stakeholders. They argue that the new tax undermines the very purpose of the Goods and Services Tax (GST), which was designed to unify all taxes under one umbrella.
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“The tourism industry is already heavily taxed,” TTAG stated in a letter to the tourism department. “If a levy of 2% on every invoice is imposed, our competitiveness will be adversely affected, and the compliance burden will increase. No other tourism destination in India, including Kerala and Rajasthan, which are our main competitors in the inbound market, impose such a fee.”
Industry players fear that the additional financial burden will render Goa less attractive compared to other popular tourist destinations. Local hoteliers echoed this sentiment, labeling the proposed fee as “ridiculous” and hastily introduced.
“There are already numerous taxes in Goa, including GST, VAT on alcohol, trade tax, and garbage tax. Now, adding another tax will only drive tourists away,” one hotelier remarked. Comparisons were drawn to Thailand and other international destinations, which have lowered prices to attract more tourists, contrasting with Goa’s approach of increasing taxes.
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Former Goa Chamber of Commerce and Industry (GCCI) president and tourism veteran Ralph de Sousa also criticized the move, highlighting its contradiction to the objectives of GST. “It is contradictory to what we are all trying to achieve. When parallel taxes come, it will not help the tourism industry, and in today’s worldwide competition, it is not feasible. Besides GST, we have local taxes that are extremely heavy, such as garbage tax, professional tax, and other fees that are collected at the panchayat level,” Sousa remarked.
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A basic survey conducted by TTAG estimates that Goa’s tourism and hospitality industry generates approximately Rs 2,500 crore in indirect taxes, including GST, VAT, and excise. Additionally, local bodies like panchayats and municipal bodies levy various fees such as waste management charges, trade taxes, and signboard taxes.
