Daijiworld Media Network - Calangute

Calangute, May 3: Beach shack operators in North Goa have acknowledged that the growing practice of subletting shacks to non-local operators has contributed to a decline in both business performance and service quality.

Members of local associations said many licence holders are leasing out their allotted shacks to outsiders at high rents instead of running them themselves. This, they claim, has led to reduced accountability and a drop in standards, especially as the tourist season winds down.

John Lobo, general secretary of the Shack Owners Welfare Society (SOWS), said repeated appeals have been made to the government to curb subletting. He argued that stricter action would ensure that licences go to operators who genuinely intend to run the businesses.

According to operators, nearly 150 of the around 200 shacks in the Calangute–Candolim belt have already shut down due to a sharp decline in foreign tourist arrivals. The remaining establishments, mainly located in high-footfall areas such as Baga, Calangute main beach, and the Candolim promenade, are expected to sustain business through domestic tourism in May.

In 2025, the Goa tourism department had initiated action against illegal subletting, including cancelling licences of shacks found to be leased to non-Goans. However, operators say the issue persists.

Manuel Cardozo, president of the Traditional Shack Owners Association, questioned why some shacks continue to operate despite minimal business activity. He pointed out that several shacks in areas like Tivaiwaddo had already shut down weeks earlier due to lack of demand.

Operators also attributed the downturn to a drop in foreign tourist inflow, citing global factors such as geopolitical conflicts and rising travel costs. They noted that international visitors, who typically form the bulk of customers in certain areas, have declined significantly, affecting business viability.

Shacks located near main beach access points or areas with strong domestic tourist footfall, such as Baga, have fared relatively better. Meanwhile, those in locations dependent on foreign tourists—like Tivaiwaddo, Gauravaddo, and parts of Candolim—have seen early closures this season.

Industry stakeholders say unless enforcement against subletting improves and tourist inflow stabilises, the challenges faced by shack operators are likely to persist.