Goa Bets Big on Tourism in Budget 2025-26 with Focus on Sustainability, Infrastructure and Hinterland Expansion

The Goa Budget 2025–26, presented by Chief Minister Dr. Pramod Sawant, places tourism at the heart of the state’s development strategy with a record allocation of ₹440.98 crore dedicated to the sector. The paperless budget—Sawant’s seventh—announces a slew of strategic initiatives aimed at transforming Goa into a sustainable, high-value international tourism destination, while also ensuring inclusivity for domestic and budget travelers.

In a significant policy push, the government has proposed tax holidays, including a 50% rebate on state GST, stamp duty exemptions, and fee waivers for investors developing three-star and above hotels or hospitals in hinterland talukas like Bicholim, Canacona, Quepem, and Ponda. This initiative aligns with Tourism Minister Rohan Khaunte’s ‘Goa Beyond Beaches’ campaign, which promotes rural and cultural tourism across the state.

To reinforce Goa’s position on the global tourism map, the budget outlines 11 ambitious projects including a new cruise terminal, jetty terminal, aero-tourism with skydiving and drone activities, an oceanarium, mini convention center in Panaji, caravan parks in Kerim, and wayside amenities. A digital nomad village and a digital museum honoring Chhatrapati Shivaji Maharaj are also on the cards, reflecting the government’s drive to diversify tourism offerings.

The proposed Tourism Ambassador Program aims to train and skill local youth, addressing the sector’s manpower challenges and enhancing service quality. Additionally, a ₹10 crore allocation under a central scheme will support tourism projects in hinterland villages, promoting eco-tourism and heritage experiences.

Recognizing the challenges tourists face with local transport, the CM announced the integration of taxi services into a digital app aggregator platform—an attempt to rectify a long-standing pain point that sparked a social media backlash last year. A new “plug & play” model is also proposed to encourage start-ups and coworking hubs in tourism-related ventures.

The budget also includes support infrastructure: a single-window mechanism will facilitate speedy approvals for electricity, water, and sewage connections for tourism-related projects. Goa is also betting on cruise and marine tourism as major growth sectors, with immersive marine exhibits and port infrastructure enhancements planned.

Urban development and tourism intertwine in the Smart City initiatives. Projects worth ₹423 crore will be executed, with Panaji receiving ₹135 crore under the Centre’s Cities 2.0 Mission. Smart roads and smart illumination are part of this urban makeover that complements tourism growth.

Further enhancing Goa’s hospitality ecosystem, a new city near Mopa Airport has been proposed under a central scheme, signaling the state’s intent to leverage connectivity and create new tourism hubs around the greenfield airport.

Tourism accounts for over 16.4% of Goa’s gross domestic product and provides more than 35% of employment in the state. A former TTAG (Travel and Tourism Association of Goa) President welcomed the ₹440 crore allocation, stating that the government’s intention is clear—if implemented effectively, these measures could deliver a new growth trajectory for the state’s tourism economy.

“Sustainable tourism, responsible development, and digital readiness are the three pillars of this year’s tourism plan,” said CM Sawant, asserting that Goa is ready to welcome quality tourists while protecting its culture, ecology, and the interests of its residents.

With a Gross State Domestic Product (GSDP) projected at ₹1.38 lakh crore and per capita income at ₹9.69 lakh, Goa is aiming high—not just economically, but experientially. The 2025–26 budget underscores tourism not merely as a sector, but as a catalyst for inclusive and future-ready growth.

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