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Why Goa’s peak season has fizzled? Fire tragedy, elections, flight disruptions hit tourism - business down 20-30%

While the recent fire at an upscale nightclub that killed 25 people has cast a dark shadow, restaurateurs in Goa say the slowdown cannot be blamed on that tragedy alone.

December 23, 2025 / 14:55 IST
Instead, a series of disruptions have come together at the worst possible time, hurting tourism and hospitality businesses during what is usually their most profitable period. (Photo: X/@TourismGoa)

Just days before Christmas and New Year, a time when Goa is usually overflowing with tourists, the coastal state is witnessing a quiet festive season. Popular beaches, bars and restaurants that normally struggle to manage crowds are witnessing thinner footfall this year, especially in North Goa.

While the recent fire at an upscale nightclub that killed 25 people has cast a dark shadow, restaurateurs say the slowdown cannot be blamed on that tragedy alone.

Instead, a series of disruptions have come together at the worst possible time, hurting tourism and hospitality businesses during what is usually their most profitable period.

Elections disrupt festive momentum

Business owners say the nightclub fire coincided with election-related restrictions, slowing down activity further. Nathaniel da Costa, partner at a cocktail bar in Chapora, Vagator, said that once the model code of conduct came into force on November 29, establishments were not allowed to host events.

“Everything happened at once. We had our paperwork in order, but events were not permitted due to elections. That alone reduced footfall significantly,” he was quoted by The Indian Express as saying.

Panchayat elections held in December meant the code of conduct remained in place for nearly 20 days, directly clashing with peak tourist season. Restaurateurs questioned why elections could not be scheduled during lean months instead.

Flight cancellations and dry days add to woes

Another major blow came from flight disruptions linked to the IndiGo pilot crisis, which led to several cancellations on routes to Goa’s Dabolim and Manohar International Airports. According to business owners, many tourists cancelled their travel plans after flights were affected.

One of the owners of a beachside restaurant in Morjim, said the situation was made worse by dry days declared due to voting and result announcements. December 19 and 20, the weekend before Christmas, were dry days because of polling, while December 22 was also dry as election results were declared.

“December weekends are crucial for us. Losing three important days during peak season hurt business badly,” the owner said.

Rising costs keep tourists away

The impact has gone beyond nightlife and bars. Hotel owners and restaurateurs say tourists are worried about safety, especially after the nightclub fire. Many visitors are avoiding beach shacks and wooden structures, which are a major part of Goa’s tourism experience.

“If people don’t feel safe, hospitality cannot function,” said one industry representative. He added that rising airfares and expensive hotel stays have further reduced Goa’s appeal.

Structural problems are also hurting tourism. Poor public transport forces most visitors to rely on taxis or rented vehicles. Taxi fares are extremely high and rise sharply during peak season. This makes moving around Goa expensive and inconvenient for tourists.

“There is no longer value for money. Mid-range restaurants charge premium prices but often fail to provide basic facilities. Tourists compare this with foreign destinations where they get better services for the same or lower cost,” The Indian Express quoted one restaurateur as saying.

Business drops sharply in Goa

Adding to the disappointment is the absence of large events that traditionally draw crowds to Goa. Two major festivals, Sunburn and India Bike Week, were held outside Goa this year. Sunburn took place in Mumbai, while India Bike Week shifted to Panchgani.

When asked to quantify the impact, most restaurateurs said business was down by 20 to 30 per cent compared to last year. Sundowner spots, which usually see heavy evening crowds, reported a similar decline.

Moneycontrol City Desk
first published: Dec 23, 2025 02:55 pm

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