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Published in Brijpal Singh Gahlot et. al. (ed) Goa: Looking Back; Looking Forward,
Broadway Publishing House, 2016 (ISBN 978-93-84298-34-0)

TOURISM IN GOA: AN ASSESSMENT

Avinash V. Raikar

Associate Professor & HoD

Department of Economics

CES College of Arts and Commerce,

Cuncolim, Salcete, Goa

In the development process of Goa, since its liberation two sectors have attracted the
imagination of development economists and critics. These are namely, tourism and mining. Both
these sectors are playing dominant role in terms of its contribution to SGDP as well as employment
generation is concerned. The rough estimate suggests that mining provides around 10 % to the states
GDP and tourism around 20 %. Hence, in years to come the development and direction that these two
sectors would take would determine the growth trajectory of the economic growth. Unfortunately both
these sectors are grappled with the issues of the sustainability and hence large section of our
population is concerned with its haphazard growth. This has resulted in the street protest by various
environmental and social groups. There for it is imperative that we talk about the sustainable growth.
Since, paper deals with tourism sector of Goa therefore confines itself to the subject.

Farnell (2005) defines sustainable tourism as one which, “is economically viable, but does not
destroy the resources on which the future of tourism depends, notably the physical environment, and
social fabric of host community”. There are many dimensions of sustainable tourism that includes:
economic sustainability, socio-cultural sustainability and environmental sustainability. The long term
sustainability of tourism would be determined by the minimization of conflicts between various
stakeholders of the tourism and maintaining the environmental carrying capacity of tourist destination.
It is with this approach the paper approaches the subject of discussion. Paper is divided into three
parts. Section I deals with growth of tourism since 1985 to 2013. It assesses the growth of tourist
inflow over the years, composition and changes observed in tourist inflow etc. Sections II deals with
the some issues of sustainability encountered in the growth of tourism in Goa and section III attempts
to outline the task that needs to be undertaken by the state government and other stakeholders of the
tourism to develop it in sustainable manner.

SECTION I

Tourism implies temporary movement of people to destinations outside their normal place of
residence and work; it includes the activities carried during their stay in the destination and facilities
created to cater to their needs. In recent years increase in leisure time, higher standard living, paid
holiday packages from employers, improvement in transport and communication are factors that are
contributing to the rapid growth of tourism in developed and underdeveloped countries of the world.
Tourism is estimated to contribute about 13.5 % to world GDP and generate employment to over 400
million people.

GROWTH OF TOURISM IN GOA

In Goa tourism started after liberation with discovery pristine beaches of Goa by the ‘Hippies’
in late 1960s. The Hippies who flocked Goa were willing to adjust on meagre resources, minimal
facilities and infrastructure. But the State government sensed the economic potential of tourism and
hence promoted tourism as an industry in 1980s. This led to creation and improvement of tourism
related infrastructure in Goa. The State Government also initiated massive advertisement campaign to
attract both foreign and domestic tourist that resulted in increased flow of both ‘Bagpackers’ and
‘Charter tourist’ in the State. The number tourist visiting the State have significantly increased from
775212 in 1975 to 3121473 in 2013. This growth has its ups and downs. Annual Growth rate shows
wide fluctuations as far as both domestic and foreign tourist visiting Goa is concerned. Average
growth rate of domestic tourist which was merely 2.67 over the period 1985-90 has fallen to 2.2 for
the decade of 1990-2000. However, during the same period foreign tourist inflow has increased from
2.59 for the period 1985-90 to 12.9 percent for the period 1990-2000. During the decade of 2000-2010
domestic tourist shows the average growth rate of 8.4 percent where as there is decline in foreign
tourist growth rate to 4.5. Overall, the fastest growth rate of tourism has been observed during the
period 2000-2010.

Table I
Average Growth Rate to Tourist Inflow
Domestic Foreign Total
1985-90 2.67 2.59 2.66
1990-2000 2.2 12.9 3.61
2000-2010 8.4 4.5 7.5
2010-2013 5.5 7.1 5.4

As far as composition is concerned, ( see table II) in 1975 foreign tourist comprised about
11.95 percent and domestic tourist about 88 percent. In 2013 the share of domestic tourist in total
tourist visiting Goa has declined to 84.23 percent and that of foreign tourist increased to 15.77
percent. In recent years, importance of charter flights in tourism growth has increased significantly.
For instance, in 1985 there were only 24 flights that brought in 3568 tourist in Goa. But in 2013 the
number of Charter flights increased to 1128 and quantum of tourist visiting through charter flights
increased to 261452. The proportion of foreign tourist visiting Goa by the Charter flights is about 53
% which is a cause of concern. The expansion of charter and luxury tourism has increased investment
from transnational corporations. Today, Lufthansa (Germany), Club Mediteranee (France), Intasun
(U.K.), Hyatt Regency, Ramada, Souther Pacific Hotel Corporation, Days Inn, Holiday Inn, Four
Seasons and Hilton Group etc are involved in international charter flights, package tour tie ups with
Goan hotels1. This is a cause of concern because the charter tourists come under all package tours and
major part of their expenditure goes to the businesses from host countries or to big businesses from
receiving country. Hence, there is very little percolation of income in the local economy.

1
Paul Routledge (2000) p-2649.
 Table II
Growth and Composition of Tourist inflow in Goa
Foreign Foreign
tourist as % tourist as %
of total of total
Year Domestic tourist Foreign tourist Total
1985 682545 88.05 92667 11.95 775212
1990 776993 88.16 104330 11.84 881323
1995 878487 79.31 229218 20.69 1107705
2000 976804 77.00 291709 23.00 1268513
2005 1965343 85.37 336803 14.63 2302146
2010 2201752 83.25 441053 16.68 2644805
2011 2225002 83.30 445935 16.70 2670937
2012 2337499 83.84 450530 16.16 2788029
2013 2629151 84.23 492322 15.77 3121473
Source: Dept of Tourism, Goa
As far as country wise tourist inflow is concerned the largest number i.e 33.05 percent of
tourist visiting Goa are from Russia followed by U.K (29.53 %), Germany (9.43 %) Finland (5.2 %)
France (4.19 %) and rest are from other countries of the world.(see Tbale III)

Table III
Country-wise % Tourist Visiting Goa in
2013

No. of
tourist
Sr. No. Countries Arrived %
1 U.K. 145431 29.53
2 Russia 162746 33.05
3 Germany 46472 9.43
4 Finland 25643 5.2
5 France 20618 4.19
6 Others 91412 18.6
Source: Dept of Tourism, Goa

Table IV
Arrivals by charter flights season
Year No.of fights Passengers
1985-86 24 3568
1990-91 41 5815
1995-96 337 75694
2000-01 419 116992
2005-2006 719 180310
2010 - 2011 900 171367
2011 - 2012 910 169006
2012 - 2013 996 215304
2013 - 2014 1128 261452
Source: Dept of Tourism, Goa
 SECTION II

BENEFITS AND COSTS OF TOURISM:

ECONOMIC BENEFITS AND COSTS:

 The studies have shown that tourism in India is more labour intensive as compared to other
segments of industries and employs a higher proportion of women. For every million rupee
invested, tourism industry generated 47.5 jobs as against 44.7 jobs in agriculture and 13 jobs in
industry, and hotel and restaurants segment in particular create 89 jobs. In Goa, tourism estimated to
provide direct and indirect employment to about 50,000 people. However, Employment generated
is:
o Low skilled and low paid jobs in which goan youths have no much interest. Hence, tourism
oriented services are provided by the migrant labour. If one visits cost line one can find waiters in
bar and restaurants are migrants. What is worse still is that even the managerial positions are
occupied largely by the migrant population.
o Seasonal and casual in nature. No doubt the employment in tourist sector involves less drudgery
that other employments like agriculture or physical labour, but it is also less remunerative. What
has happened is that labour has shifted from traditional occupations like agriculture, toddy
tapping, fishing, and salt farming to which are traditional employment oriented industries are
vanishing very fast.
o Working conditions are inhuman. It is estimated that about 19 million young people around the
world work in tourism related occupation like barmen, roving beach vendors, laundry workers etc.
tolerating exploitative working conditions. In Goa, estimates of such workforce are not known but
one can safely assume that 70 % or higher percentage of the workforce is working under such
conditions.
As pointed out earlier large section of this labour force is from outside the State. Such labour
force remits their savings to their native State and hence multiplier effect of tourist expenditure on
employment and income is outside the State2. Thus multiplier effect of tourist inflow does not work to
the advantage of Goan economy.
In order to understand the multiplier effect of tourism on local economy it is essential to identify
the other stakeholders apart from the labour. There are four major stake holders in tourism industry
viz. small and large hoteliers, tour and taxi operators, suppliers of food and non food items to tourism
industry, handicraft manufacturers. Today, Charter Tourist comprises about 53.00 percent of total
tourists visiting Goa. These tourist visit under all-package tours where right from hotel, food and even
sightseeing is booked in host country. As a result there is very little percolation of the tourist
‘expenditure’ as income in the local economy. Moreover, many of the foreign nationals are operating
businesses in Goa to provide services to their visiting countrymen. The problem of so called ‘illegal
Rap’s’ have become so severe that Federation of Association Taxi Owners and Drivers (FATTOD)
had to demand ban on these illegally operating ‘Raps’. There are also the large numbers of cases
where foreigners are seen running ‘beach shacks’ and tourist taxis. Furthermore, corporate taxi
operators and ‘big’ tour operators have threatened the livelihood of large number of Taxi
driver/owners who are probably one and only major source of percolation income and employment in
Goan economy.

Another major group of stakeholders are small and medium hoteliers but at present they are
on the fringe and does not benefit substantially from the growth of tourism. Also, there is hardly any

2
Almeida, J.C., “Goa Tourism” in Navhind times dated 24 September 2006.
horizontal integration of tourism with local production. At present most of the requirement of the
tourism like vegetable, meat, liquor etc is largely imported from other states and hence, so called
tourism income and employment multipliers does not works to the advantage of Goan economy.

As far as handicrafts are concerned what are sold in Goa are Kashmiri products and hardly
any handicraft product of Goan origin is marketed. Hence, here also there seems to be no much
multiplier effect as far as stimulation of local handicrafts is concerned.

Considering all these it is clear that the impact of tourism’s income-employment multiplier on
the Goan economy is minimal.

SOURCE OF FOREIGN EXCHANGE:

The foreign exchange earned from tourism has emerged as a vital component in country’s
Balance of Payments. However, the benefits of the foreign exchange go to the national government
and contributions of Goa are estimated to be over Rs. 1500 crores3. The State gets revenue in the form
of entertainment and luxury tax, VAT on food and liquor, tax on transport vehicles etc. Apart from
above the VAT contributed around Rs. 689 crores in 2006-07 but the quantum of contribution in such
tax by the tourism alone is not known. The State Government collects VAT @ 12.5 percent on Food
and other items and 20 % on IMFL and beer sold. Apart from above Goa also receives revenue as
licence fee from the gambling activities allowed in offshore and in star hotels. Government collects
annually Rs. 1 crore a fee for the vessel and Rs. 40,000 per mother machine and Rs. 30000 for every
additional machine. Today, it is tourism sector that sustains the budgetary expenditure of the
government.
LOCALISED INFLATION:

Mass tourism by generating localised inflation adversely affects the living standard of local
population. The higher purchasing power of the tourists has denied the basic resources to the locals.
The rise in land prices is forcing the local population to move away from ‘prime’ tourism areas to
hinterland leading to economic ‘cleansing’ of local population. This is due to intensive development
of Goa as an international tourism destination which according to Paul Routledge (2000) requires
‘people’s cultural and ecological spaces’. The trend is clear in due course of time economic pressure
would force locals to move in hinterland and surrender even the physical space that they occupied to
the tourist lobby comprising of international and domestic hotel chains and foreign nationals.

It is estimated that large number of foreign national has purchased land in Goa. This loss of
land resources would make Goans ‘outsiders’ in their own land and would intensify the feeling of
alienation from their land and heritage. Such alienation is bound generate anti-tourist sentiments and
translate into a fervent opposition to any tourist related infrastructure that is proposed in the village
either under government or private sector.

The anti-mega housing projects and anti-hotels agitations that are wide spread on Goan
coastline are the reflection of this alienation. The Gram Sabhas of different village Panchayats are
passing resolution after resolutions condemning the so called ‘Mega-projects’ that are lining the
coastlines of Goa. This agitation though appears to be against the new settlers, it is not so. Basically it
is targeted against those tourists - foreigners and domestics - who are interested in buying second
home in Goa. In fact, large proportion of housing projects remains unoccupied or occupied for short
period by these ‘floating residents’ that is a threat to the locals because even the panchayats does not
possess the records of such residents.

3
Gomantak dated 10th September 2006.
DEVELOPMENT OF LOCAL INFRASTRUCTURE:

It is argued that the tourism leads to development of local infrastructure which though ostensibly
for the tourist but the ultimate beneficiaries are the locals. Tourism no doubt has increased the
conditions of the road but has also increased congestion. Apart from roads the tourism has put undue
stress on the availability of electricity and water resources. It is pointed out by the studies that:

 Water used by a tourist in 3.6 days is enough to produce rice that can feed a person for the year.
 A Study in Philippines found that hotel guest uses in 18 days water that family consumes in a
year.
 In Spain a tourist uses 880 litres of water a day as compared to 250 litres used by a locals
 The amount of water used per Golf course is approximately 6500 cubic meters which is equal to
water used by the 60,000 villagers in Thailand per day.
 World’s 25000 golf courses guzzle about 10 billion litters of water that is enough to satisfy the
needs of half of the world population4.
SOCIO-CULTURAL BENEFITS AND COSTS
It is argued that the tourism provides platform for the people to mix and understand each other and
thereby by influence each other customs, cultures are traditions. There are two views prevalent about
the Socio- cultural impact of tourism: first, the interaction between host and guest could destroy
traditional culture and thus, tourism is a threat to culture and people; and second, the interaction
between host and guest could create new opportunities for peace and greater understanding.

However, to understand socio-cultural impact it is essential to understand two important

aspects of tourism –pleasure and hospitality- on which tourism industry rests. Tourist who embarks on
tour is essentially hedonist. To be a tourist is to withdraw, temporarily, from everyday social
obligations. Instead of duty and structure one has freedom and carefree fun, including hedonistic
regression to drugs and nude sunbathing5. Similar view is articulated by the Rao (1996) “Goa had
been constructed to serve as one of the world’s pleasure peripheries, a cultural space for the leisure
consumption of tourist divorced from the need and concern of everyday life…. Tourist destinations
thus become the cultural thresholds were the tourist leave behind his or her social roles, rules and
norms”6. Hence, the tourists are expected to have least respect for indigenous culture or the people. To
him culture is just a commodity of sensual enjoyment like sand, sun, wine and women. He expects it
to be presented in manner that suits his tastes. This results in adaptation of local arts and crafts and
culture to suite foreigners tastes leading to creation of contrived cultural products. Thus, though
tourism helps to preserve local custom, traditions and culture but by its ‘commoditization’ or
‘commercialisation’ converts it into a “Staged authenticity” where a cultural traditions and customs is
turned into a well rehearsed tourist spectacle. Receiving a tourist with ‘arthi-tilak’ and garland on
arrival, wearing of saris by receptionist, shows of traditional dances in resorts and hotels are part of
this “staged authenticity’. For local community, whatever customs and traditions that are revered and
valuable soon become a saleable commodity under the greed and desire for upward mobility7. Thus

4
Cited by A.V. Raikar (2009) Tourism in Goa: Is it Sustainable? Atharva, vol.IV, No.8, August.
5
Crick, M (1996) “Representation of International Tourism in Social Spaces”, in Yiorgos, Apostolopoulous at.
el (Eds) The Sociology of Tourism, Routledge, London.
6
Routledge, Paul (2000) p-2652.
7
A.V. Raikar opcit
tourism over period of time brings about changes in value system, traditional lifestyles, family
relationship, individual behaviour and community structure8.

DEMONSTRATIONS EFFECT

Demonstration effect implies imitating tourist. This can be both advantageous and
disadvantageous to the host community. Local people often tend to imitate the life style of tourist that
changes the pattern of consumption from local product to western products. Local people may turn to
illegal means to obtain the wealth to acquire the things they desire; this may increase the crime rate in
the society. The demonstration effect generally has greater influence on young people.

INCREASED CRIME AND DRUGS PROBLEM

Several studies world over have conclusively proved that there is strong positive linkage
between growth of tourism and increased incidents of crime in a region. The increased drug peddling,
gambling, prostitution have highly detrimental effect on local community. The tourism in Goa
possesses all these ailments that threaten to destroy socio- cultural fabric of local community. Today,
Mafia’s have spread their network on Goan beaches. Kasmiris, Keynean, Nigerian and Russians apart
from locals are in the drug business. The narco-politico-police nexus that largely benefit from such
trade has taken entire Goa as a hostage and have sacrifices locals interests. This menace has not only
confined to tourists but has also engulfed our local youths. Drugs nabbed by the police are also rising
over the years.

PROSTITUTION:

Though prostitution is not entirely a product of tourism however it got a boost from rapidly
growing tourism industry. Tourism industry promotes prostitution among both the genders as well
among children. Today, Goa is in danger of emerging as a most favoured destination for sex tourism
like Thailand and Sri Lanka. Similar views are articulated Nishta Dessai (2001) of Child Rights Goa
(CRG), “although Goans themselves like to deny it but it is well known that not only migrant women
but Goans too are involved in it”9. Further, sexual libertarianism that Goa has, have created a problem
of ‘informal prostitution’- where the employees working in tourism related venture enters into short
lived relationship with tourists. The ayurvedic clinics and massage parlours are fast emerging as dens
of prostitution. If not all, many of this clinics and massage parlours have turned out to be the hub’s of
the sex tourism. Village panchayats in the coastal areas under increasing pressure from citizens and
gram sabhas to close them down. But, sadly panchayats are given powers to grant trade licences but
not to withdraw them. For this sad state of affairs the Government of Goa has played a significant
role. In early years of tourism growth, it deliberately promoted Goa as ‘sun, sand, sea, wine and
women’ destination among the domestic and foreign tourists. Today, it is a well known fact that
“Indian men like to visit Goa for voyeuristic purpose, to ogle at the scantily dressed women, both
Goan and foreigners, believed to be ‘free’, ‘fun loving’, ‘permissive’ and easily available”10.

PAEDOPHILES:

Tourism has also increased the sexual exploitation of children by the tourist. Though migrant
children are the major victims of paedophiles, Goan children are also lured by the tourist. The famous

8
Ratz, T (2002) “Residents’ Perception of Socio-cultural Impact of Tourism at Lake Balaton”, in G. Richards
and D. Hall (eds) “Tourism and Sustainable Community Development” (p-36-47) London: Routledge.
9
Desai, Nishta (2001), “See the Evil Tourism Related Pedophiles in Goa”, Vikas Adhyan Kendra, Mumbai.
10
Ibid p-4465
case of Freddie Peats exposes the modus operandi of paedophiles. Though he was convicted but there
are many like him that has managed to escape the law.

CONFLICTS BETWEEN TOURIST AND LOCALS:

Tourism has also created a social conflict between residents and tourists for same recreational
facilities and infrastructure. “Many beaches, temples and churches in Goa packed with international
and intra-national tourist offer hardly any space for local residents to relax and enjoy often causing
considerable disgruntlement. Adding fuel to the fire, (is) the disdain or amusement with which many
foreign tourists treat indigenous religious customs and practices, (which) often irritate and cause
resentment amongst the local populace11”

Tourism requires the basis resources like land, water, energy and food which are also the
necessities of life for the local inhabitants. Demand for such commodities creates conflict between the
government backed tourism industry and local community over the right to use these local resources.
The voices of Gram Sabhas echoed in costal Goa are the reflection of these conflicts.

ENVIROMENTAL BENEFITS AND COSTS

 Fisheries and other resources that are economically critical and important as a subsistance source
of protein, economic activity and income for the local communities are destroyed.
 Mangroves that are important for stabilisation of low lying coastal land and regeneration of wide
varieties of species of fish, shell fish and birds are destroyed due to development of tourist related
activities.
 There is wide spread deforestation, razing of sand dunes etc has wider impact on fragile costal
environment. It is estimated that due to Global Warming sea level would rise at the rate of 1.5
millimetre per year. This can cause the inundation of coastal areas, threatening fresh water
supplies as sea water infiltrates subterranean water levels. The Future of World Travel Report
states that by 2020 the natural features of some of the wonders of the world will be damaged by
global warming. It has predicted that in little more than decade, global warming will erode Goa’s
beaches and lead to more hurricanes sweeping across the coastal waters12.
 Greed for profits of the private sector is well known but in developing countries nexus between the
private big business and government functionaries makes it lethal. There is floating of every norm
set to protect environment. The violation of CRZ norms are very common whole over India and in
Goa.
 One of the major areas of concern is generation of Garbage. The panchayats do not have adequate
machinery or resources to deal with this problem. At present hotel are dumping these garbage in
the river and other water bodies or in open fields.
 Another associated problem is sewage. Huge sewage that is generated is either let into nearby
water bodies or in the fields or allowed to percolate in the ground without treatment. This has
polluted ground water and has adversely affected local population. The Ministry of Tourism has
drawn up plan to clean up beaches but no adequate attention and resources are earmarked for
keeping villages clean. The Village Panchayats that are that are entrusted with this task have
neither infrastructure nor resources.

11
Nicholson – lord, David (2002) “Against the western Invaders”, New Statement, Dec, 9, 131(4617) , p-22-23.
12
Navhind Times “Tourism Responding to the Challenge of Climate Change”, World Tourism Day Special
feature, September 27, 2008.
View publication stats

 Another area of concern is escalating sound pollution. The sound pollution in the form of loud
music, firework and the sound of moving vehicles through out the night causes noise in otherwise
peaceful rural surrounding.
CONCLUSION

To conclude, tourism in its present form has imposed greater cost on Goans than benefits. The
sustainability of tourism has three aspects: economic, social and enviromental sustainability. On all
three parameters it fails misrably. It has not benefited Goan much but has destroyed their social fabric
and has threthened the identity of this small community. It has also destroyed its enviroment. The
growth of tourism now is not possible to reverse but atleast care has to be taken to see that economic
fruits of tourism percolate to the local community. The Government of Goa has to change its stratergy
from ‘commercial tourism’ to ‘community based tourism’. Further, its has to strenly deal with crimes
of drugs, prostitutions, gambling etc. However, recent extention of timings for bars and restraurents
and justifying casinos because they provide much needed revenue to the State indicates that our
government is more concerned about financial benefits rather than moral, social and ecological impact
of tourism.