As tourist preferences change, Goa sees a boom in small hotels, homestays, villa

Changing traveller preferences with a clear trend towards independent, experiential holidays has forced Goa’s hotel industry to adapt and change track to cater to new and emerging trends.

Statistics provided by the state tourism department have revealed that since the industry emerged from the pandemic and travel reopened after the lockdown, the trend of opting for homestays, independent villas and small bed-and-breakfast hotels has persisted and is reflected in a near-doubling the number of C (economy class) category and D category (bed and breakfast) hotels.
According to the tourism department, between 2021 and 2024, the state saw the registration of 4,907 hotels officially registered with the Goa Tourism Department taking the total number of hotels registered in Goa to around 7500.
“Goa’s hospitality sector saw remarkable growth, with 216 homestays and 4,907 hotels officially registered with the Goa Tourism Department. This expansion added a substantial 12,383 hotel rooms,” an official of the department told HT.
“The rise in registered homestays also highlights a growing interest in immersive, local experiences, offering tourists a chance to engage closely with Goan culture. This significant increase in hotel and room registrations underlines Goa’s commitment to supporting its booming tourism industry, enhancing its capacity to host a wider range of visitors year-round,” the official said.
For comparison, Goa had only 2,631 registered hotels as of 2021 when business reopened after the pandemic.
The breakdown of the data reveals that of the 7,500 odd hotels registered in Goa only 300 belong to the ‘high end’ category, classified as A and B category hotels, while 7,200 belong to the C (economy class) and D (bed and breakfast) with 3,300 and 3,900 each respectively.
The tourism department only recently began classifying independent villas and homestays separately and has seen 216 registrations over the past three years.
It is a trend that is seen even among the biggest hotel groups operating in the state. Indian Hotels Company Ltd, which runs the iconic Taj group of hotels that opened its first luxury homestay residency AMA in 2019 today has 23 homestay hotels in the state, the most for any location.
“It is a very different clientele. Post-Covid it grew tremendously. Today we have 23 of them. Post-pandemic people wanted privacy, seclusion, and to be close to nature. It gives you a sense that you are in a private residence. You are in a home away from home,” Ranjit Philipose, the senior VP in charge of Goa operations for the group that recently completed 50 years of operations in Goa, said.
“There is a new market called the slow travel market. A lot of people want to slow the pace down, time for themselves with their families,” he added.
“Previously it was all about opulence, and luxurious, etc. But today a lot of people are looking — luxury is one segment but some people travel for experiences, people concerned about sustainability, and multi-generational travel. Pleasure was created during Covid that continues,” he also said.
“All hotels have adapted and changed with time — they take the local flavours, local ethos. We have brought in these experiences so that it is not only about the hotel but it is about the destination also. People come here to explore the destination’s offerings — culture, food, arts and crafts,” he said.
President of the Travel and Tourism Association of Goa, an industry body, said that the trend that emerged during Covid, tapered off somewhat but continues to draw in visitors from all classes looking for independent vacations.
“There was a trend that began during the pandemic, some tourists have returned to the bigger hotels but the demand for the new class remains,” president Jack Sukhija, who owns a heritage hotel and who also recently launched a homestead-style hotel, said.
The tourism department currently has around 7,500 accommodation units registered with about 67,500 rooms. Of these about 7,200 are in C and D categories with an average size of 10 and four rooms respectively and an inventory of 47,500 rooms.
However, according to the Travel and Tourism Association of Goa, an industry body, several of these smaller hotels “face significant challenges to upgrade themselves and evolve as per current customers’ requirements.”
The industry has also remained upbeat despite recent “negative publicity” on social media.
“Other destinations are giving Visas on Arrival, we also need to adapt ourselves to make Goa more affordable — across all brands, we have an occupancy of 73-75%. We have seen a correction in rates as compared to previous years — across brands and categories,” Philipose said.
“A lot of MICE (Meetings, Incentives, Conferences Exhibitions) is coming back, weddings (are) coming back — international travellers are coming, city events are coming,” he added.
Goa’s tourism season runs from October to May and receives around 9 million tourists 90% of whom are domestic visitors. According to government estimates tourism contributes around 16% to the state GDP and 40% to the state’s employment.