Going Goa? Get ready to spend more for rooms
The hotel industry in Goa is on a roll with room tariffs increasing by up to 20% in the current tourist season. While an average room rate ranges from Rs 3,500-7,000 per day, room rates across classes have risen by an average 15% compared to last ...
By Smitha Venkateswaran, TNN |
PANAJI: Next time you plan a trip to Goa, be prepared to pay more on accommodation. The hotel industry in Goa is on a roll with room tariffs increasing by up to 20% in the current tourist season. While an average room rate ranges from Rs 3,500-7,000 per day, room rates across classes have risen by an average 15% compared to last year.
A sudden hike in state luxury tax, from 3% to 10%, has hit the hotel industry hard forcing many to absorb the 7 percentage point lift since most bookings were done prior the tax increase. Many bookings also got cancelled as a result of the increase in prices.
Hoteliers call this a temporary phenomenon and do not expect escalating prices to have an adverse affect on tourism. The impact, if any, only seems positive in ensuring that more ‘up-market’ tourists coming to Goa. This year, state expects at least 15% addition to the 25 lakh people who visited last year.
This optimism is even shared by the Travel and Tours Association of Goa (TTAG). “Over a dozen five star resorts including Hilton Hotels, Oberoi Hotels and Resorts, ITC, Sun ‘n’ Sands will open in Goa within the next three years,” said Ralf D’Souza, chairman of TTAG.
In addition, airlines such as Air Lanka, Trans Air and Condor are set to start direct weekly flights to Goa from this October apart from the regular charters that ply almost 45 flights per week during the peak season. Charters mainly bring in people from the UK, Spain, France, Germany, Russia and Czech Republic.
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Booming market has triggered a price hike in room tariffs, say market analysts. “Right now the demand for the rooms is more than the supply which is driving up the rates, while the market segment has not changed much,” said Vijay Nagpal, front office manager, The Leela Resorts (Goa).However, while prices always rise during the peak season, the entire quantum of increase has changed considerably. Room rates have grown by a steady 15% in last couple of years. Better infrastructure, proper marketing through events like the International Film Festival have added to Goa’s growth story.
Agrees R Narayan Director (marketing) Park Hyatt Resort and Spa, “Currently market is very buoyant and so are the rates. We’ve seen a rate hike of 20% over last year and the momentum is expected to continue into the next year.”
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