‘This investment is going to die…’: CEO’s brutal take on Goan tourism crisis

Goa, India’s tourism magnet, is now struggling with an abysmal recession. Shantanu Deshpande, CEO of Bombay Shaving Company, captured the anxiety in a LinkedIn post: “Goa’s tourism decline is swift and severe. Social media has evangelized word of mouth cycles for years.

The once-bustling bars are now empty, the booths are quiet and the events are less well-attended, he writes.The decline comes as many investors who bought holiday homes for high returns are questioning their choices.

“What they say is: ‘We are very happy that Goa is calm and quiet now without the noisy tourist hordes.’ What they really feel is: ‘Shit, this investment is going to die. I have no desire to go to Goa either,’ Deshpande wrote.

Goa’s tourism woes erupted on social media after viral posts criticized the infrastructure. Complaints ranged from unreliable transport and taxi monopolies to skyrocketing hotel and flight costs. “Foreign tourists have left Goa,” says entrepreneur Ramanuj Mukherjee, pointing to a decline in numbers and a shift to international options like Thailand and Sri Lanka.

In response, Goa’s Tourism Minister Rohan Khaunte dismissed the claims as a “smear campaign”, with influencers paid to defame the government. In the year A 22% increase in domestic tourists by 2024, 1.04 million visitors were recorded. However, the number of foreign tourists is much lower than before the pandemic, affected by geopolitical conflicts and logistical challenges.

As tourism struggles, Goa’s real estate market continues to boom. Driven by high rental yields of 12-16% per annum and improved connectivity at the new Mopa International Airport, property values ​​have increased by 30-50% in four years. Investors flock to Goa for its lifestyle, pristine beaches and rich culture. However, many are reconsidering their decision as tourist footfall continues to decline. “It’s going to be really interesting to see the people who actually move there get committed,” Deshpande said.

Social media influencers and local activists have fueled the debate. Documentary filmmaker Deepika Narayan Bhardwaj said the viral article on Goa’s emptiness drew criticism and said, “It was a heartfelt cry to make Goa better.” Meanwhile, local influencers have urged the government to address real problems such as transport problems and crash management instead of avoiding criticism.