The news should make the government sit up and take notice, said Travel and Tourism Association of Goa (TTAG) president Ralph D’Souza, that increased tariffs and overpricing was driving tourists away from Goa to competitor destinations.

“TUI Nordic was one of the most dependable operators. They used to fly in 500 Scandinavian tourists here every week. With our prices so high they’ll be flying to cheaper destinations like Thailand,” he said. Three other Russian flights will also switch destination to Sri Lanka from 2008-09.

Drawing a bleak outlook for the future of tourism in Goa, the TTAG said the Centre’s and the State’s high tax regime and indifference to infrastructure upgrade was stifling the tourism industry. “The government has only a short-term view, rather than a long-term vision for the industry,” D’Souza told a media conference.

While five-star accommodation in Egypt costs between 50 to 100 dollars, five-star rates in Goa average at 250 dollars. “Our competitors in West Africa, South East Asia, UAE and the West Indies are offering very cheap packages because their taxes are negligible,” said TTAG.

Despite the grim scenario, projections show charter traffic will increase by 15 to 20 per cent in 2008-09. Hoteliers are hoping for new markets in East Europe, and they have got queries from Ukraine, Latvia and Estonia.