State may restrict new budget hotel licences amid room glut

nt
nt

Panaji: Budget and economy-class hospitality establishments in Goa, including guest houses and lodges, may soon face restrictions on expansion, with the tourism department considering limits on new licences for C and D category hotels.

Tourism Minister Rohan Khaunte on Wednesday said the government was looking at placing restrictions on additional C and D category hotels as the segment was facing a large inventory.

“The biggest challenge in the tourism industry today is the lower category hotels as they are finding it difficult to sell their rooms in the present challenging times whereas three and four star hotels are easily getting bookings,” he said.

Khaunte stated that the Tourism Department, in consultation with the Travel and Tourism Association of Goa (TTAG), would discuss measures to improve the performance of C and D category hotels.

“They will be given the option of limiting growth or of upgrading their amenities to improve their reach among tourists,” he disclosed.

Of the approximately 9,500 hospitality establishments in the state, a majority are C and D category hotels catering to budget-conscious travellers.

“The number of starred hotels are actually quite less,” the minister stated.

Recently, the Tourism Department issued a reminder to all C and D category hotels to ensure timely and regular submission of tourist check-in data through the Tourist Information Management Enterprise (TIME) app.

According to the department, several small hotels have been negligent in submitting the required data, hampering effective tourism management and monitoring. The department stated that failure to provide the information would attract penalties and fines.

The department has also observed that several small hotels, guest houses, homestays and bed-and-breakfast establishments are operating without valid registration licences, in violation of the law.

The government has directed individuals operating accommodation through platforms such as Airbnb and other short-term rental services to obtain registration with the department.

Share This Article