As Goa’s Tourism volumes revive, investing in hospitality can be a profitable decision

Goa is an all-season evergreen tourist hotspot in India. After muted demand during 2020 and 21, markets have recovered in 2022, on the back of an economic resurgence.  Domestic tourists have crossed 8 million, jumping by around 170% compared to 2021. The number of international tourists has also crossed one million. Goa has traditionally been a bastion for international tourists from Europe, Russia, and CIS countries, and hence the revival of the segment is further renewing optimism in the state’s tourism and hospitality market. 

Does this also mean Goa is once again a fertile ground for hotels, resorts, and other hospitality businesses? Yes, from 4 and 5-star hotels to Ayurveda centers & spas to nature resorts, restaurants, and cafes to serviced apartments & corporate suites, if planned and marketed well can give elevated ROIs in Goa. 

Multifaceted nature of Tourism 

The present market in Goa is not just conducive to starting a 4 / 5-star hotel, semi-luxury resort, or a 1/2 star budget hotel/lodge. It is also luring concept tourism and new-age hospitality service providers such as 

·         Nature resorts, eco-hotels, adventure clubs, etc.

·         Wellness resorts, ayurveda centers, spa and massage centers, etc.

·         Yoga and Reiki studios, naturopathy hotels & cottages, eco-tourism villages, etc.

·         Spiritual retreats

·         Herb nurseries, Ayurveda food businesses, health cafes, etc.

·         Forest lodges, traditional eateries, sports bars, bakeries, etc. 

Mentioned below are some of the factors that one should consider before venturing into Goa’s hospitality and tourism industry. 

Accessibility: A well-planned placement of your property will let capable customers access your hospitality service easily. Properties near beaches, airports, railway stations, and other popular tourist spots have chance of attracting more visitors. 

Customer centric approach: Top-notch customer service with an emphasis on the higher standard of quality is a cornerstone to a successful hospitality business venture. 

Workforce: Efficient workforce comprising of a courteous workforce is always an added advantage in running a hotel, resort, café, restaurant, etc. in a high tourist volume space such as Goa. 

Brand Value: Bringing a popular brand can ease the proper marketing for your hospitality business. Also, a high-class area portrays your brand reputation better. 

Financial: Businesses must observe finances before recognizing a base. The rental structure and property value vary for various localities. Discovering a location that stays in touch with your budget for a profitable long-term investment is vital. 

Competition Analysis: A prime location that hosts a competitive market is crucial for all businesses to set their KPIs. Accordingly, your business advances with growing demand. Upon that, your business gets unveiled within the free market. 

Feasibility study for Hotels & Resorts 

Meanwhile starting a business also requires access to seamless data, insights, and valuable information. Before committing funds and starting a resort/ hotel business, it is advisable to prepare a feasibility study. A feasibility study of a hotel can offer a range of actionable information on 

·         Projected revenue of the hotel and income statement.

·         ROI estimation and ratio analysis

·         Demand-supply analysis.

·         Customer assessment and market trend analysis

·         Detailed competitive insights

·         Define the key success factors of a new hotel/ resort in Goa

·         Regulatory information to start a new project in Goa. 

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