PANAJI: Contrary to the claims by the state tourism industry about decline in tourist arrivals to the state, the ‘India Hotel Review Report-2014’ released by Horwath, a global hospitality consultancy firm, has revealed that the state did exceedingly well as compared to other states of the country by registering a 13.2 per cent growth in 2014 over the year 2013.
The report based on data collected by the consultancy firm from hotel industry as well as government agencies, which was released recently, states that most key markets (Mumbai, Hyderabad, Ahmedabad and Jaipur, gained occupancy and achieved growth of above 5 per cent but Goa achieved a remarkable growth of 13.2 per cent revenue per available room.
The report states that Goa continued a strong march forward buoyed by domestic demand. It, however, has cautioned that Goa might be nearing occupancy saturation, reflecting a strong potential for new supply. The average daily rate for the year 2014 also showed positive growth of 5.5 per cent over the previous year, the highest in the country.
The report further states that Goa has been a star performer in 2014 with the highest occupancy and revenue per available room in the country as well as higher average daily rate and revenue per available room growth over the year 2013 with occupancy showing +4.8 points; ADR +5.5 per cent and RevPAR + 13.2 per cent.
Goa is the only market in which every segment has reflected healthy double digit RevPAR increase in the last year, the report states. The report, however, has stated that only 865 up-upmid rooms were added in the last three years and that there has been no material new supply in tourism sector.
“Goa has market-wide development potential, across all segments and demand growth is expected to continue from inbound and domestic tourists in leisure, conferences, weddings and event seeking out this market,” the consultancy firm has stated in its report adding that the foreign tourist arrivals would be buoyed by the new visa regime.
Meanwhile, a tourism department official said that the state received more than 4.058 million tourists during the year 2014, an increase of 30 per cent. The tourist arrival was exceedingly high through the year except in the month of December. The source also said that due to crisis in Russia, charter tourists also saw a decline of about 30 per cent (approximately 75,000 tourists.
The huge rise in tourists arrivals was mainly because of exposition of the relics of St Francis Xavier, International Film Festival of India and long Diwali holidays (almost a week during which nearly half a million tourists came to Goa), the tourism officials said. The exposition attracted nearly 2 million tourists, the officials said.
Accordingly to officials of the tourism department, the fall in December could be largely attributed to airlines crisis due to sudden cancellation of Spicejet flights to the state, which prompted other airlines to hike the ticket rates exorbitantly forcing some people to cancel their plans to visit the state.
Secondly, the month also saw a fall in the arrival of charter flights (30 per cent) which could have brought about 75,000 tourists to the state. The fall in foreign charter tourists was not huge, the tourism officials said adding that charters have always been a smaller component of overall tourist arrivals to the state.
The official further said that fall in charter tourists could also be attributed to overdependence of the state tourism industry on tourists from Russia. He also said that there was also a slight fall in the arrival of charter tourists from Germany and United Kingdom, which were currently under recession. “Despite fall in charter tourists 2014 has been best year so far for tourism,” they said.
Another reason for fall in tourist arrivals in December was the habit of the hotel sector not to release rooms in advance for the people to make advance booking, the officials said adding that the rooms were held back and sold at premium as the last minute booking picks up. “The strategy, however, boomeranged this year with many rooms remaining vacant,” he said.
The extension of visa on arrival has been a big boost to the tourism sector in the country, the officials said adding that 40,000 visas on arrival have been issued in India since the new regime began on November 27.
Of the 40,000 visas issued, 35.7 per cent were issued at New Delhi and 21.05 per cent at Mumbai, the two well-connected airports, the officials said adding that Goa, which has limited air connectivity came a third with a share of 18.24 per cent of the total visas on arrival issued in India.