Goa Govt Announces 50% GST Rebate for Hotels in Hinterland Areas to Boost Tourism Investment

In a significant boost to tourism infrastructure, the Goa State Government has announced a 50% Goods and Services Tax (GST) rebate for investors establishing three-star or higher category hotels in the state’s hinterland regions. The move is part of a broader incentive package aimed at promoting tourism and medical infrastructure development in less-explored areas of Goa.

Key Highlights of the Incentive Package:

  • 50% Rebate on State GST for eligible hotel and hospital projects.

  • Exemption on stamp duty and registration charges.

  • Waiver of various processing fees and charges.

  • Applicable to new investments in hinterland talukas such as Bicholim, Sanguem, Canacona, Quepem, Dharbandora, Ponda, and Sattari.

Chief Minister Pramod Sawant, while presenting the state budget during the last legislative session, emphasized that these incentives aim to develop Goa’s hinterland tourism and attract investments in the hotel and medical tourism sectors. The budget is expected to be passed in the upcoming House session scheduled for June.

Industry Welcomes Government Initiative

The announcement has been well-received by the hospitality sector. Gaurish Dhond, President of the Goa Hotel and Restaurant Association, praised the government’s focus on promoting hinterland tourism and medical tourism, calling it a timely and visionary decision.

Entrepreneurs already operating in Goa’s hinterlands have also expressed support. Basuri Desai, owner of The Inaka Goa, an eco-tourism resort located within the Cotigao Wildlife Sanctuary in Canacona, said the rebate offers a great opportunity for expansion.

“As someone invested in eco-tourism, this initiative is a big encouragement to grow sustainably in lesser-known regions. It’s also a win for local employment and cultural preservation,” Desai added.

Desai believes that with proper implementation, the policy could revolutionize hinterland tourism and position Goa as a holistic destination—beyond its beaches and nightlife. Areas like Canacona, Sanguem, Quepem, and northern talukas like Pernem and Sattari stand to gain significantly from this move.

Boost for Sustainable and Inclusive Growth

With Goa already being a top international travel destination, this strategic push towards developing its interiors could diversify tourism, ease pressure on coastal zones, and promote more inclusive economic development.

The hospitality industry is hopeful that these policy measures will not only draw new investments but also foster responsible tourism, job creation, and long-term sustainability in Goa’s lesser-known regions.

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