Pranab grants a Rs 200-crore facelift to Goa

MUMBAI: Union finance minister Pranab Mukherjee’s Rs 200-crore stimulus package, announced in the Budget last week, may give a much-needed boost to Goa’s tourism sector.

“We have been asking for a grant to boost tourism. It’s come at a right time,” said Goa chief minister Digambar Kamat. The state promises to utilise this fund to preserve ancient forts, beaches and also improve infrastructure to make it more tourist friendly.

The allocation announced as a special golden jubilee package is to preserve state’s natural resources, including sea beaches and forest cover. “Beaches have been Goa’s USP. This package will help to preserve soil erosion affecting the beaches here,” said Saji Joseph, general manager of one of the hotels here.

Nearly 10% of Goa beaches, including many famed shores such as Calangute, Candolim and Baga, are facing soil erosion. According to a UN report on global warming released in 2007, country’s beach capital may not even be listed in the top 10 tourist destinations in the next decade, if the erosion is not halted. “People visit Goa for the shallow beaches, but the seas are likely to become deep and rough due to soil erosion. Goa is only 5 feet above sea level,” the report reads.

Goa’s 105-km-long coastline invites nearly two million tourists to the state annually. However, in the past couple of years, the state has been witnessing a steady decline of 5-10% in the number of foreign visitors coming ever year. And unlike earlier when charters made up nearly 80% of room occupancy, it’s now shrunk to a mere 20% of entire hotel bookings.

Domestic tourists, too, have given the state a miss, with many opting for other cost-effective destinations. The coastal state, which heavily depends on holiday makers, has been the worst hit during the global financial turmoil.

This declining number has taken a toll on tour operators and travel agents who have suffered a cumulative loss of over 20% in their earnings. Tour operators now fear that Goa’s high costs coupled with unavailability of good hotels having basic facilities is further driving away tourists to other coastal destinations, be it Thailand, Indonesia, Maldives and new rival Sri Lanka.

“With the FM pledging financial support, the state can now look forward to revival in tourism sector,” Mr Kamat hoped.