Goa tourist trade Act amendment a worry for e-travel aggregators

A recent amendment in the Goa Registration of Tourist Trade Act, which has made it compulsory for online travel aggregators and hotels to register their business to continue operations, has raised concerns in the sector.

The amendment, which has been notified in the official gazette, is expected to negatively affect online travel firms such as MakeMyTrip, Oyo and Airbnb, raising their compliance costs and setting a precedent that other tourismheavy states may look to emulate.

Companies said they were still studying the Act, which was passed on January 31. “While we are taking up this Bill through industry bodies, we are concerned about some of the onerous provisions around local registration,” said a MakeMyTrip spokesperson.

An industry source, who did not wish to be named, said the Act would create high-entry barriers for new service providers and limit customer choice.

“E-commerce businesses are already having to register in every state under the new GST (goods and services tax) rules. The ones that don’t need to register are those that don’t meet the revenue threshold (essentially small businesses). But they have to pay tax up to 18 per cent. If the government is going to force them to register their business under the new Goa Tourism Act, it will lead to a loss of revenue for the state, while increasing operational and compliance costs for small businesses,” said the source.

In January, a group of small and medium hotels in Goa had demanded an amendment in existing tourist laws to check low and aggressive pricing by online room aggregators and also to regulate the conversion of residential property to boutique hotels and bed and breakfasts.