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February 4, 1999

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Recession gobbled up 30 pc of business, bemoans Goa tourism body

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Sandesh Prabhudesai in Panaji

Recession in southeast Asia has badly hit the tourism industry in Goa, the favourite international tourist destination, though the local authorities still deny the fact citing statistics.

"The business is down 30 per cent", admits K D Row, chairman of Goa Tourism and Travel Association, suggesting that concentrating more on domestic upmarket tourists is the best remedy to sustain the vacillating industry.

Goa normally gets 20 per cent foreign tourists out of a total 1.2 million annual visitors with its peak season spread between October and January. Its major -- 80 per cent -- earnings, however, are from the foreign tourists, including charter tourism.

The charter arrivals, which began in October last year, are down in terms of number of tourists. The number of such flights has dropped by eight this year despite allowing additional slots during weekdays from Denmark.

From 53,470 charter tourists in four months last year, the number went down to 53,352 this year. In fact, the season began with a major setback as only eight charters landed in October compared to 21 in the previous season.

"But the number of tourists was higher in the following three months," points out Ulhas Kamat, the tourism director, in an attempt to hide the declining trend. He, however, admits that the domestic fares are still higher compared to the more attractive packages offered by Thailand or Singapore.

Although statistics about tourist arrivals are still being compiled, hoteliers as well as other shopkeepers admit it was a slack season. Even multinational soft drink industries like Coca-Cola and Pepsi have faced the brunt, calculating around 20 per cent decline.

While acute financial crunch has put on hold all the developmental projects, the state had planned to improve the decaying infrastructure. Tourism Minister Joaquim Alemao, himself a hotelier, is planning to take firm stance for the industry's survival.

"I will not allow rent-back facility homes any more," he says since 1500 such rooms in almost 25 homes along the Baga-Calangute coastline have severely hit the hotel industry due to its unimaginable cheaper rates. As a result, the hotels have slashed their room tariff by 50 per cent.

Besides 2,500 paying guest rooms meant for middle class foreign tourists and 8,500 lodgings for general tourists, Goa can now accommodate 3,600 upmarket tourists in around 53 hotels of various star categories.

Alemao also appears to have taken the Goa Tourism and Travel Association's suggestion -- to display a list of point-to-point taxi fares at each hotel -- seriously. "Tourists also shy away from Goa because the taxi drivers charge them exorbitantly," alleges Row.

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