The Sikkim tourism department has argued that homestays and other smaller accommodations in rural areas are attracting tourists over Gangtok hotels to counter those claiming a steep decline in visitors to the Himalayan state.

Data available from hotels based in Gangtok suggested that tourist footfall declined this year compared to earlier years.

Negating the inference of Gangtok hoteliers, a senior Sikkim tourism official said: “During the first quarter (of 2024), 2.94 lakh tourists visited Sikkim. One should not think like the earlier days when tourists would come to Gangtok hotels first and from there go to other places in the state like Geysing and Namchi."

“Because of good transport facilities, they (tourists) are nowadays going directly to Yumthang valley and other places through various other entry points (to Sikkim) like Melli, Rangpo, Ramman and Reshi, and not necessarily touching Gangtok,” the official added.

The official said he had recently spoken to elected rural representatives in Zuluk and adjoining areas about tourism. "They said homestays were attracting big crowds and doing evergreen business,” the official added.

According to the Sikkim official, these homestays only charged around ₹1,000 per head for food and accommodation. Homestays are making small profits but earning all year round. Honestly, homestay owners are happy.... It is their business strategy,” the official added.

Tourism stakeholders, however, refused to fully endorse the government’s argument that tourism had not dwindled and had shifted focus from hotels to homestays.

“While a lot of homestays have come up in Sikkim and the Darjeeling hills, we do not think Gangtok hotels are not doing well because of homestays. The flow of tourists in Darjeeling town is much higher at the moment than Gangtok. Although Darjeeling has as many homestays, its hotels are also doing well, which is not the case with Sikkim,” said a hotelier with properties both in Sikkim and Darjeeling.

There are some 1,700 registered homestays in Darjeeling hills and almost an equal number in Sikkim. Many homestays are not registered in both places.

Tourism stakeholders, in recent months, have been stating that the poor condition of arterial highway NH10 and its frequent closures, as well as the closure of important tourist spots like Gurudongmar in north Sikkim and steep cab fares are deterrents to tourism in Sikkim at the moment.

As recently as on May 13, the Union ministry of tourism had written to the Sikkim tourism and civil aviation department, expressing concerns that tourists visiting the state had complaints of “exploitative” cab and permit rates and lack of amenities for visitors, among other things.

The Sikkim government had then formed a high-level panel to look into the complaints.

On Friday, Sikkim tourism department issued an order stating that luxury cabs taking tourists to Nathula, Tsomgo and Baba Mandir from Gangtok cannot charge more than ₹7,000 and normal vehicles not more than ₹6,500, both inclusive of permit fees.