Tourism Business in Goa cuts down by 40% due to the demonetisation, claims the report


The Tourism business in Goa which had started falling down since the past few years due to the global meltdown, all the industries connected to the tourism is suffering heavy losses. Now the demonetisation has put the final nail in the coffin by reducing the business by 40% claims one of the reports published in the ABP news.

Tourism is the major business of Goa besides the mining (which has already closed down many years back due to the intervention of center into the abuse of natural resources by the mining companies). Tourism started slowing down in the past few years due to the global meltdown. Most of the British nationals who were used to be the major source of income for the business connected to the hospitality industry had been reduced substantially due to the global meltdown.

Now, the demonetisation has come as major blow to the already dying tourism industry by cutting it down to further 40% claimed the sources. According to the reports published by the ABP news, although the claims have been made that the effects of the demonetisation are getting less severe with the time but it is the fact that due to the demonetisation the tourism business in Goa had got affected very badly this year. The tourist flow to the state has fallen down by 40% this year claimed the sources.

The preparations for the new year is already in progress but the demonetisation and cash crunch in the marketplace making the entire business futile. According to the sources, there are around 2500 hotels (including the small and big segment) exists in Goa. While the bigger hotels are getting their payments done online the business of small and medium hotels are getting affected due to the nonavailability of the cash, said the sources.

People are also avoiding the travel due to lack cash factors. Most of the ATMs in the state are running dry making it difficult for the people to get hold of the cash when it is needed the most. Due to fall in the tourist inflow, the Taxi business in the state is also suffering badly. Many tourist taxis have remained stranded on the road due to no passengers, said the sources.


According to the sources, 70% of the household in Goa survive on the tourism business which starts in the month of October and winds up by May. They make their livelihood of the entire year in these six months, but this year there is no good flow of tourists visible till the end of December which is said to be the very serious issue for the survival of the tourism industry of Goa, said the sources. According to the reports, the quantum of business comes from the tourism industry to Goa touches to 5000 crores in a year.

May it be the shacks running on the beaches of Goa or water sports, everyone is witnessing a huge drop in the business. According to one of the British couple (Tourists) who is visiting Goa for the past 20 years for their yearly vacation said to have been facing lots of trouble this year due to the demonetisation.  Goa is said to the highest in selling the liquor but due to the demonetisation it is also facing the 40% drop in the business, said the sources.


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