Restaurant shutdowns, regulatory hurdles hit tourism business in Goa

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Shutdown scare

Beginning April, many restaurants were shut down for not having a pollution control licence.

“In Goa, there has been a lot of sealing happening since April. I received a notice in April which said that my property which faces the Ashwem beach does not have a pollution licence. We were told to come for a hearing and it will be decided there on what has to be done. We went for the hearing but got no clarity. On April 4, my place was raided and sealed. Electricity was cut off. I have been here for the past four years and I have never encountered such a situation. This high court order came without any prior notice,” said Misbah Quadri, a restaurant owner in Goa.

In the recent past, people of Goa have become pollution aware and loud music has triggered unrest amid the locals, which led to the High Court of Bombay in Goa issuing an order saying that if places do not have pollution control certificates, they should not operate, pointed out a resort owner in Goa who didn’t wish to be named.

“While I understand the concerns, properties like mine which anyway do not play loud music after 10 pm to not disturb other guests in the resort were asked to shut down without any prior intimation. Notices have been sent to businesses saying that their applications for pollution licence have been rejected without any reason,” the resort owner said.

Also read: How the pandemic has changed the face of tourism in Goa

These shutting down has led to less number of live gigs like music festivals and concerts which happened at many of the restaurants, hotels and resorts.

Quadri said that it has been nine months since her property was closed and till now she sees little signs of it reopening.

“A lot of other restaurants have also shut down. We also know that 180 shacks in Calangute were asked to shut down. Many tourists come to Ashwem as it is a popular destination. But this year the footfalls are low because people don’t know where to go. I have lost this year’s business entirely because the season is gone. Now the next season is only next September. The business is dull this year. Even foreigners have cut down. It has been a very bad December,” she rued.

However, as far as domestic tourists are concerned, Goa has surpassed pre-Covid levels, said Nilesh Shah, president of Travel and Tourism Association of Goa (TTAG). “But when it comes to international tourist arrivals, we (Goa) are between 30 and 40 percent of pre-pandemic levels,” he said.

Foreign tourist arrivals in 2019 were at 9.4 lakh while the number has reached 2.8 lakh till July this year, according to government data.

“Tourists are getting impacted. Also, I am expecting my resort to reopen in a couple of days. It is a lost opportunity for me as many tourists may  already have made their bookings for the Christmas and New Year holiday. So, half of this time’s business is gone. I will see marginal recovery but it is better than to remain shut,” said the resort owner cited earlier.

On the other hand, residents of Goa point out that in many properties loud music continues beyond the 10 pm deadline and is stopped only when authorities pay a visit. In October this year, the high court suggested authorities seal the establishments that repeatedly violate noise pollution rules.

Also read: Coronavirus impact : Goa tourism body predicts loss of Rs 1,000 crore

“Currently, outdoor music after 10 pm is not allowed so if any neighbouring houses are disturbed, complaints are made to the police. As far as the licensing is concerned, if all the licences such as FDA ( Food and Drugs Administration), pollution and remaining other licences required are maintained, I don't foresee why there will be any unnecessary trouble from any authority,” said TTAG’s Shah.

Lack of clarity

A restaurant owner whose property has been sealed said that there is no clarity in terms of the kind of paperwork required to run a restaurant in Goa.

“There is an area-wise panchayat and we need to get permission from them. I received a no-objection certificate from them. However, I was not told about the pollution licence. It has been over a year of running the restaurant and no concerns were raised until April this year when my property was sealed. It all started with a beach resort at Ashwem which held parties until the wee hours. Complaints were raised against the property which led to its shutting down. Along with that resort, 15-20 properties in front of that beach resort were shut down,” the restaurant owner added.

The restaurateur said that the notices should have been after an intimation. “Authorities suddenly came with a high court order saying that my property name has come in the order and that it will be sealed. Also, I am following up on the licence but there doesn’t seem to be any clarity.”

Key challenges

Regulatory hurdles and time taken in acquiring licences and clearances are some of the challenges that need to be addressed, said Prahlad Sukhtankar, National Restaurant Association of India Goa chapter head and co-founder of Black Sheep Bistro restaurant.

“Key issues that can be addressed by the government of Goa include reducing regulatory hurdles, better infrastructure especially related to water and electricity, and tourism-centric policies by involving local stakeholders alongside policymakers,” he said.

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Shah pointed out that cases of fines levied on those opting for two-wheeler rentals have also come to their notice. “We have received feedback that police stop bikes and ask for documents. There has to be a system in place where the bikes that are given on rent have all the necessary documents. We have also observed that many times riders are stopped and harassed which affects the sentiments of the tourists. But the riders should ensure that they are following the traffic rules,” he added.

The recent surge in vehicles not registered under rent-a-bike schemes has also led to a rise in accidents, noted Samarth Kholkar, CEO and co-founder, BLive, an electric vehicle (EV) platform.

“In view of the same, the recent crackdown on these illegal vehicles will ensure that only legally-approved operators can carry out the rent-a-bike business. Also, from 2024, the Goa government will make electric vehicles mandatory for all new rent-a-bike services. This will ensure better vehicle management for all operators as EVs easily provide options to track, cap the speed, etc., leading to lesser unforeseen incidents on the road," he said.

The new challenge for Goa as a tourism magnet is competition from other international destinations. “With several countries like Thailand, Vietnam and Malaysia offering visa-free travel, Goa is no longer an attractive option for Indian tourists. International tourists are also less inclined to visit Goa now that all of Asia has opened up at cheaper rates. It is still quite popular with weddings and conferences but no longer attracts the scores of tourists you normally see in December,” said Sandeep Arora, director, Brightsun Travel.

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Competition has intensified as foreign locations like Bali are becoming the preferred destinations for Indian travellers. Recently, a traveller in a post on microblogging site X said that it is cheaper to go to Bali or Hanoi than Goa. In response to the post, another X user said that he visited Bali, Hanoi and Phuket three times this year and travelled to Goa only once as it was 2.5 times more expensive.

Goa, still a favourite 

While the challenges remain for Goa as a tourist spot, it still is the most preferred beach destination for 40 percent of the Gen-Z cohort (people born between 1996 and 2010) out of the 10,000 surveyed by social discovery app Hunch recently.

Occupancy is better than last year and the upcoming Sunburn festival is pulling a lot of crowds, said Chandrashekhar Parab, co-owner of Circle and Hermiting Hospitality in Anjuna.

“We got many pre-bookings when Sunburn was announced. We are also seeing many people driving down to Goa from Mumbai, Bengaluru. And this we are seeing more post-Covid,” he added.

Also read: 10 things to do in Goa this December

There is no dearth of business, said Chander K Baljee, chairman and managing director of Royal Orchid Hotels which operates four hotels in Goa.

“Occupancy is over 90 percent this month. Weddings business is good in Goa currently,” he said.