Goa’s tourism and hospitality sector is facing one of its worst nightmares owing to the sudden outbreak of the COVID-19 pandemic across the globe. With several hotels and hospitality destinations being forced to shut operations due to the lockdown, diverse stakeholders ponder upon their present condition and contemplate what the future holds for them
Tourism is one of the chief sources of revenue for Goa, and is a go-to destination for both domestic as well as global tourists. Where the COVID-19 pandemic has completely crippled the economy of the State, the constant trepidation encircling the fact that a large number of people employed in the tourism and hospitality sector could lose their jobs as a result of the virus-led lockdown has now become a reality. Moreover, the present lockdown guidelines and upcoming interruptions in the travel business could also have a potentially fatal impact on those who rely solely on tourism and hospitality related businesses for their day-to-day earnings.
“It is going to be a very difficult task to revive the loss of business and I am afraid, most people will not make it” Atish Fernandes, Director, First Class Holidays
Even before the catastrophe struck, various concerns regarding an already ‘down’ Goan tourism sector suffering loss of revenue and downbeat media hype were brought to the notice of the Chief Minister, Dr Pramod Sawant – this being a result of escalating crimes, annoyance to tourists such as the taxi issue, availability of cheaper alternative travel destinations as well as degraded levels of infrastructure in the State. Further, sudden cyclonic weather and occasional rain showers during the tourist season also led to lesser number of tourist arrivals thus further affecting tourism and hospitality related services across the State. However, the pandemic has led to the total collapse of the tourism and hospitality sector in Goa where every outlet ranging from a five star hotel, to beach shacks, to restaurants have incurred major losses of income, few of which are almost on the verge of permanent closure.
Majority of the hoteliers who are dependant on tourism for revenue generation have labelled the circumstance as a ‘nil- income’ situation, while pointing out to certain factors such as elevated levels of rent and maintenance costs, hefty electricity and water consumption bills, staff salaries, discarding perishable stock and the overall uncertainty that dangles over their business stating that it has sent shock-waves across the functioning of the overall industry!
The Goa Tourism department has shown increasing concern over the deteriorated state of affairs while deciding to seek financial aid from the Centre for its stakeholders to overcome the present revenue crisis that they are hit with due to the outbreak of the pandemic.
“Travel bubbles must be opened up with respect to relatively safer tourist destinations, using the trial and error method; and depending on the outcome, a further call on continuation or discontinuation of the experiment may be taken” Jack Ajit Sukhija, Partner, Panjim Inn
While the State Tourism Minister Manohar Ajgaonkar has stated that he has officially written about the tourism sector’s grievances to the Goa Chief Minister for fiscal assistance, he also revealed about the formation of a committee headed by the State Finance Secretary Daulat Hawaldar to conduct appropriate research on the exact situation and take the decision on how much fund is to be disbursed to which stakeholder. The State additionally desires to introduce a financial package for restaurant and shack owners, hoteliers, and others who are dependent on tourism with the sole objective of restarting their sunken revenues.
With the State not permitting tourists to enter Goan borders anymore, the future of the tourism and hospitality industry certainly appears bleak all due to the global slouch that economies have suffered in general and more particularly due to the COVID-19 pandemic.
‘SURVIVAL OF THE BUSINESS AT STAKE’
Nilesh Shah, President of Travel & Tourism Association of Goa (TTAG), while analysing the situation states that mankind has not witnessed such unprecedented times since almost a century. The tourism sector, according to Nilesh is the first victim of the pandemic and will sadly be the last sector to recover. Further, elaborating his views on the present status of the tourism and hospitality sector in Goa, Nilesh says that Goa occupies a unique position in the tourism world and thus he is hopeful that Goan tourism and the hospitality sector will certainly rise above the pandemic. He further says “I am not opposed to the idea of re-opening the doors of tourism in Goa. It is a fact that we need to survive. The industry is lamenting over loss of business hence we need to pay heed to the voices of the industry, but not at the cost of our health. We need to protect our health and lives for a day when we can do business without having any fear of the COVID-19 Pandemic.”
“Our priority is to ensure job security in these trying times; however, this will come at a cost to the ownership” Guitry Velho, Vice President & General Manager, Heritage Village Resort & Spa, Arossim
Additionally speaking of the working of the TTAG during the pandemic, Nilesh mentions that the pandemic has not really affected the TTAG as the association has been working much more than ever before as the staff has risen to the occasion and is performing beyond his expectations. Nilesh further states that, the TTAG has a strong Managing Committee with proactive members who are packed with potential and ideas that can aid in the better functioning of the Association and the tourism industry. As far as the foremost challenges to the TTAG during this time is concerned, Nilesh says that the major challenge is to take a call on when and how Goa must open up once again for Tourism and tourists. While mentioning that this has to be done in a gradual and calibrated manner, Nilesh says that the goal must be to protect the brand that is Goa, by keeping the State safe in every way possible!
In order to kick-start the sunken travel and tourism sector in Goa, Nilesh suggests that the Government needs to release tourism from its bureaucratic constraints and provide ease of doing business to flourish in the long run.
‘GOVERNMENT SUPPORT NEEDED’
Ninil D’Souza, owner, Bottlebay beach shack, Baga while reacting to the circumstances says that there is no pre-determined protocol to react to this sudden catastrophe and that life is never going to be the same again. He further says that change is an inevitable part of life and all we can do right now is to focus on the positives and adapt to this new normal.
He further mentions that as far as the food and beverage and restaurant sector is concerned, safety and hygiene is paramount and contactless procedures coupled with social distancing will have to be the new norm. Innovation and technology will ultimately decide whether the business survives or not. While commenting upon how the pandemic has affected the business of his shack, Ninil says that “with the lockdown in place and borders being sealed, there is no business! I had to make the hard decision of breaking into my savings in order to support my faithful staff. Needless to say, this is at a huge personal loss and not everyone is in a position to do the same.”
“With the lockdown in place and borders being sealed, there is no business! I had to make the hard decision of breaking into my savings in order to support my faithful staff” Ninil D’Souza, Owner, Bottlebay Beach Shack
In addition, Ninil mentions that, with tourism on an indefinite hold, survival is at stake which makes him hope for Government intervention at the earliest in the form of interest-free moratoriums for SMEs, free renewal of licences and rebate on GST/VAT paid earlier. Ninil further says that failure on part of the State mechanism to create a holistic roadmap for economic recovery and sustenance will lead to bankruptcy for the Goan tourism stakeholders.
‘TRAVEL SECTOR HIT THE HARDEST’
Atish Antonio Fernandes, director, First Class Holidays, a travel agency in Panaji says that Goa’s tourism and hospitality sector has been hit the hardest with many employees losing their jobs and employers losing their very businesses. While speaking about major loss of business with to the travel trade, Atish says, “Years of struggle, dreams and hopes that people have put in to make their businesses successful are unfortunately shattered post the COVID 19 pandemic. It is going to be a very difficult task to revive the loss of business and I am afraid, most people will not make it. Many more will lose jobs. But the demand to travel to Goa will return soon, provided we have determined and specific marketing campaigns in place to attract visitors back and also target new markets to Goa.”
‘COSTS CONTINUE TO ESCALATE’
Jack Ajit Sukhija, partner, Panjim Inn, Fontainhas alongside being the Vice President, (North Goa) at Travel & Tourism Association of Goa (TTAG) and the Chairman, GCCI (Tourism Wing) says that the COVID 19 pandemic has totally destroyed his business and has left them with little to almost no revenue coming in at the moment; however, the costs still continue to mount. He says that the lockdown has sadly led to a situation where they had no choice but to shut shop and have been permitted only recently to open up, subject to adherence to special conditions. Speaking upon the aspect of supporting their staff, Jack says that they have managed to strike an understanding with their staff members that they will certainly be called back to work as and when the business begins to revive.
Commenting upon the way forward, Jack says, “Its best to get used to this situation as COVID is clearly not going to go away anytime soon and we have to eventually learn to live with it. The mantra for now is to look at each day as it comes and combat the circumstances as they exist. Hopefully, Goa’s tourism and hospitality sectors will get to see visible improvement in about 3 months time. If possible, travel bubbles must be opened up with respect to relatively safer tourist destinations using the trial and error method and depending on the outcome, a further call on continuation or discontinuation of the experiment may be taken. What is of utmost importance is being extremely cautious and treading carefully as life is after all, above everything else!”
‘OUTSTANDINGS & DUES’
While offering his comments on the sunken situation Guitry says, “The COVID-19 pandemic has affected the Goa’s hospitality, travel and tourism industry drastically resulting in all related businesses coming to an absolute standstill. These are unprecedented times and totally unexpected scenarios for all of us in the travel and tourism industry. The situation unfolded so drastically, that it caught everyone unaware thereby making it impossible to have any exigency plans. Although hotels had a decent closure for 2019-20, there have been a lot of outstanding payments to the hotels from all their partners. This has ultimately affected the cash flows of the hospitality stakeholders. Additionally, due to the closure of business, the first quarter of April May June of 2020-21 has seen zero revenues!”
He further says, “We have managed to retain all our employees as it been our Chairman Arjun Sharmas directive to pay full salaries for April –May- June and as long as we can. Our priority is to ensure job security in these trying times; however, this will come at a cost to the ownership.”
In addition, Guitry says that the way forward is to obviously find a remedy to the pandemic so that life can return to normalcy at the earliest. Considering that various tourist destinations have opened up across the globe in a staggered manner, a state like Goa where 15 – 18% GDP is dependent on tourism, it is essential to slowly open up tourism in Goa in a similar fashion – a staggered opening ‘un-lockdown’ with strict safety protocols and guidelines in place for prospective clients and employees.
“The need of the hour is to put constant hygiene and sanitation related SOP’s in place whereby hotels will provide safe, sanitized and secure place for guests to stay. We all look forward to better days ahead,” adds Guitry.
As the tourism sector struggles to make sense of the pandemic driven uncertainty, the stakeholders are thinking of innovative ideas to get back to business
“The Government needs to release tourism from its bureaucratic constraints”
Founder & Partner of Purushottam Bhagwan and Associates, Nilesh Shah has been involved with the Goan travel and tourism business for the last 28 years. He has been associated with TTAG for the last 27 years and held various positions since 1995 including that of the Vice President of the TTAG for two terms. Moreover, he has also been the President of the Rotary Club of Panjim for the year 2016-17, as well as chairman of TAAI Goa Chapter for 3 terms and further served as the president of JCI Panjim in 1998. Nilesh is currently the incumbent President of the Travel & Tourism Association of Goa
Where do you think the Tourism and Hospitality sector in Goa stands after the breakout of the COVID pandemic?
Goa is one of the states which have relatively remained better off under the circumstances of the pandemic. Even those who have tested positive do not have a social existence and are quarantined. We need to test every tourist whenever he enters Goa by any mode of transport. I am not opposed to the opening of tourism in Goa, as I am aware that we need to survive amidst the pandemic. The industry is lamenting for business and we need to lend an ear to the voices of the industry; but not at the cost of our health. We need to protect our health and lives for a day when we can do business without fear of the COVID pandemic.
How has the pandemic affected the working of TTAG in particular?
The Pandemic has not really affected the working of the TTAG as such. On the contrary, on account of the Pandemic, we are working much more than ever before. We at TTAG have a strong Managing Committee with proactive members packed with potential and ideas that can aid in the better functioning of the Association. I would also like to highlight the contribution made by our past president, Francisco de Braganca, who as a member of the COVID Economic Assessment Committee, has done his best in putting forth the demands of our industry for ease of doing business.
What are the major challenges that TTAG is facing due to the outbreak of the pandemic?
The major challenge is to take a call on when and how Goa must open up for tourism and tourists. It is a million dollar question for which there is no clear answer. The whole world looks forward to visit Goa. The moment people get an opportunity to come to Goa, they will come in hordes. Also, once the tourist season begins, we should be in a position to manage the load of testing incoming tourists.
What do you think is the way ahead for the tourism and hospitality sector in the State?
My appeal to the Government is to see that everyone entering into Goa is tested upon immediate entry and not just 48 hours before departure. In case the tourists tests positive, the procedure we are following now should be followed. Internally, we can open the economy without letting COVID positive cases to come into Goa. If we take these necessary precautions, we can certainly revive the tourism and hospitality sector in the state.
What are your suggestions for kick-starting the travel and tourism sector in Goa?
In my opinion, the Government needs to release tourism from its bureaucratic constraints. We need ‘ease of doing business’ if we are to flourish. Numerous licenses need to be done away with. I do not understand as to why we need a NOC from the local authorities when the building wherein the hotel is located has been approved by the Planning Authorities who have technical expertise to do so and why we need multiple licenses thereafter. Such licenses should be deemed to be granted and registered for taxation and fees. We have created multiple layers of approvals and have thereby slowed down the growth of tourism in the State. We should also look into basics as to why tourists would want to come to Goa. According to me, they visit Goa for its scenic beauty and exceptional heritage and we need to preserve and revive that. For example, revive the Dona Paula Jetty, convert the Adil Shah Palace into a museum, and provide clean beaches across Goa. In addition, we must also look at permitting hassle-free transportation within the State as per convenience of the tourists
