By Benjamin Lyngdoh
Finally, the Government of Meghalaya has placed on record the economic outcomes of tourism festivals. The government has claimed that Rs. 133.42 crore has been generated over a series of festivals and events, many of which it had promoted aggressively. If the amount Rs. 133 crore is viewed in isolation then it looks impressive. However, as usual in money matters, the devil lies in the details. When the amount is viewed holistically, one wonders if the Rs. 23.5 crore (which the state government had invested in promotions) could have been used in better interventions within the tourism sector itself. The Rs. 133 crore projected proudly by the state government is a fallacy and misconception, and most disturbingly it has put Meghalaya tourism at the crossroads prematurely.
Fallacies
The core principle of an economic stimulus is – ‘to target the most needy sections of society who also form the majority (in numbers) so as to achieve maximum impact (outcomes).’ In terms of livelihoods dependency and two square meals a day, the tourism stakeholders are definitely not the majority in Meghalaya. This recognition goes to the poor and ignored farmers and all those who engaged in various agricultural activities. Now, even if the majority is to be viewed from the perspective of tourism alone, then they are the rural hamlets, the clusters of villages, the average Meghalayan youth who tries to spearhead community-based tourism so that it benefits the populace of his village(s) – but whose dreams die a quick death due to a lack of state intervention (or in the words of the state government ‘economic stimulus’).
The state GDP of Meghalaya is around Rs. 43,000 crores for 2022-23. The share of tourism is around 7% and this amounts to Rs. 3000 crores. Now, Rs. 133 crores when compared to Rs. 3000 crores is only 4.5% which is meager in comparison to the whole sector. This is an indication that the focus of the government needs a revisit. According to the state government, every Re. 1 spent on tickets generated an addition Rs. 334 in other tourism activities. This algorithm needs further clarification for it is preposterous and illogical. For instance, even if a ticket cost of Rs. 1000 is considered; then according to the algorithm of the government it would generate Rs. 3,34,000. Map this amount with the tourism services currently available in Meghalaya and the amount makes no sense at all. It is nothing but misdirection.
The biggest question that arises is whether the Rs. 133 crores is revenue or a profit. If it is revenue then it is less significant. However, it is obvious the state government would harp on it. If it is a profit, then if the standard margin for Meghalaya tourism of 50% (arrived at on the basis of studies conducted on Sohra Region) is considered then the direct impact is Rs. 66.5 crores. This is the final and credible figure which has to be analyzed and discussed. Now, compare Rs. 23.5 crores to Rs. 66.5 crores and make an informed conclusion. So, what is the real issue here which is more important that Rs 133 crores – to date, Meghalaya tourism does not have a system to record tourism receipts, taxes, expenditures, etc across its various activities such as food and beverages, accommodation, transportation, leisure activities, adventure activities, events, tourism festivals, etc. If a system were there, then the figure reported by the state government would have been more factual (and in most likelihood a lot lesser than Rs. 133 crores).
Misconception
Tourism festivals are exclusive. They predominantly benefit those who are well established and positioned. For instance, accommodations which are centrally located with better networking, those who are able to set up shop inside or around the venue, etc. There has to be a proper cost-benefit analysis on this aspect. Further, Meghalaya tourism is facing serious challenges on over-tourism and carrying capacity. The nature-based attractions are now purely mass tourism destinations and have turned into an eye-sore. The majority of the itineraries are made outside the state and here then comes the issue of revenue and profit leakages. Meghalaya does not get the full share of the returns from tourism as it deserves. It is like 5 people are sitting in a taxi and only 2 are paying for the service. The remaining 3 consume the tourism offerings without benefit to the state. These are the type of loopholes that need to be addressed if sustainability is to be achieved. Hence, the current approach of using festivals to attract more tourists is wrong. The proper way would be to revamp the tourism services and infrastructure in an organized manner and then have select high-end festivals to get maximum benefits from the tourist. An example – it is never a good idea to invite people into our home if the sitting room is in a mess!
Crossroads
Meghalaya tourism is standing at the crossroads of nature-based ecotourism and festival-based events mass tourism. If the decision is to be made on the basis of the strengths and opportunities available to Meghalaya tourism (which is nature-based, environment, wellness, etc) then there would be no crossroads at all. However, the strategy of the MDA 2.0 government of over-selling festival tourism has put the stakeholders in a difficult spot. Going by the Tourism Area Life Cycle (TALC) Model of Richard Butler (please refer to the figure), Meghalaya is currently in the stage of development. The development gradually scales towards stagnation over a period of 7-10 years. The key requirement here is that the tourism development strategies and interventions are to be formulated and implemented in accordance with the strengths of the place and the abilities of the host communities. If this fundamental requirement is violated then tourism progress would not happen as per its normal sequencing but rather result in a sudden tailspin of decline (straight from development to decline). Sure, the state government can say that it will try to rejuvenate and reverse the decline, but, the golden rule in tourism is that if things happen too suddenly then there would be no reaction time. By the way, accommodation bookings for July, 2025 in Sohra region are dismal. Food for thought!
In the end, the Rs. 133 crores says that tourism festivals have a peripheral role to play in Meghalaya tourism. This situation corroborates and is in line with other destinations like Meghalaya which are nature-based. Now, the state government has to decide which form of tourism it wants to promote. Commonsense dictates that Meghalaya chooses a path which is as per its strengths and opportunities for scaling by involving the grassroots through community cohesiveness and training. In the analogy of a car, tourism festivals are accessories. There is a danger now of accessories being given more importance than the heart and soul of what Meghalaya tourism truly is. It is logical to take tourism festivals for what they are with no need to over-sell or over- emphasize. Every activity in the tourism sector has its own place as per the nature of the destination. Overplaying one aspect would ruin everything!
(The writer teaches at NEHU; Email – [email protected])