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Despite of High Room Rates Revenue of Goa Hotels Keeps Falling

The Hotel Industry in Goa is suffering the loss of revenue despite the fact that the tariff of the rooms kept rising. According to
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The Hotel Industry in Goa is suffering the loss of revenue despite the fact that the tariff of the rooms kept rising. According to the reports, the hotels in Goa facing a 5.5% fall in revenue. The hoteliers blame various aspects of the industry for the fall in their revenue. Some call it it is due to the fall of Jet Airways while others claim it is due to the long election period, but whatever may be the reason one thing is sure that the tourism industry has been affected badly and the hotels in the north Goa beach belts are more influenced compared to the south Goa. 

According to the reports published by Times of India Despite room tariffs inching upwards in the first six months of 2019, the revenue per room for hotels and resorts in Goa declined by 5.5% in the same period, shows the half-yearly Hotel Momentum India report for 2019.

The above results have been declared by the consultancy firm Jones Lang LaSalle also known as JLL which is specialized in tracking the supply and demand growth across 11 cities in India, attributed Goa’s slowdown to the long election period and the turmoil within Jet Airways, which saw booked flights being canceled.     

“A longish election season spanning April and May, grounding of Jet Airways causing last-minute flight cancellations followed by a harsh summer and travellers opting for overseas travel, especially for the World Cup, contributed to a reduction in hotel bookings for Goa,” MD of JLL India’s Hotels and Hospitality Business Jaideep Dang said.    

Domestic Tourists in Goa

According to the reports, on an average, prices of Goa’s hotel rooms highest after Mumbai, and Goa, along with Ahmedabad, bucked the trend shown by the other nine tourist destinations in the country. The average tariff for a hotel room hovered around Rs 8,000 per night in Goa while the revenue per available room stood at just Rs 5,563 per night. The report pegs overall room occupancy in Goa at just under 70%.

Hotel room prices in Goa remain the highest after Mumbai where the average cost of a hotel room cost Rs 8,508 per night. The revenue per room for Goa’s hotels dropped by 5.5% from January to June while the average daily room rates showed a slight uptick of 1.9%.       

The decline in hotel room occupancies was most visible in key cities including Goa, Pune, and Ahmedabad, according to the report, but analysts said that Goa’s attraction as a tourist destination remains strong and stable. “Hotel rates in Goa will remain upwardly stable. There is no upcoming supply and with Mopa International Airport, the arrivals will only increase,” Dang said while speaking to TOI.    

Foreign Tourists in Goa

Dang agreed that the number of charters has shown a decline in the last few seasons due to global systemic shocks. “In the short term, as long as the economy is doing well and things remain reasonable, we don’t foresee any drastic decline in charters and Goa’s tourism potential at large. Goa is a strong market,” said Dang.

Source: TOI

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