Darjeeling Introduces Daily Tourist Tax Sparking Controversy Amongst Hoteliers

The picturesque hill town of Darjeeling has stirred up a heated debate with its recent decision to levy a daily tourist tax of Rs 20 on visitors above the age of five. This move, intended to generate revenue for the municipality’s developmental initiatives, has been met with strong resistance from local hoteliers who were excluded from the decision-making process.

Sources revealed that the tax collection responsibility has been outsourced to a private agency following a competitive tender process. The winning bid of Rs 28.25 lakh, surpassing the municipality’s base price of Rs 25 lakh, highlights the commercial stakes involved in this controversial initiative.

Chairman of the Darjeeling municipality, Dipendra Thakuri, confirmed the imminent commencement of tax collection, signaling tensions among hoteliers who feel sidelined by the decision-making hierarchy. “The decision was taken by the municipality without consulting us. We had a very bad experience regarding a similar initiative in the past,” expressed a dissatisfied hotelier.

This isn’t the first instance of Darjeeling attempting such a tax. Previous endeavors in 2008, 2011 (Rs 3 per head per day), and 2012 (Rs 10 per head per day) eventually fizzled out due to multiple reasons, including lack of cooperation from hoteliers and flaws in the tax collection system.

Hoteliers, in particular, are vocal about their concerns. They suggest an alternative approach, advocating for tax collection at entry points to Darjeeling, aligning with practices in other tourist destinations like Gulmarg and Nainital. However, district officials argue against this proposal, citing potential traffic disruptions, especially during peak tourist seasons.

In Darjeeling’s winter, Kanchenjunga’s snowy peaks and the iconic toy train’s scenic routes lure travelers. The bustling markets, tea gardens veiled in mist, and cultural riches add to the allure. Despite the Rs 20/day tourist tax, visitors eagerly plan their trips, captivated by Darjeeling’s winter charm. They happily contribute to its upkeep, valuing the experience over the nominal fee.

The current outsourcing arrangement mandates the private agency to issue “tourist tax receipts” to hotels, a move met with resistance by some hoteliers. Questions loom over the bid amount’s adequacy, inclusion of homestays, and the exclusion of visitors staying with friends or relatives from the tax ambit.

As the municipality gears up for tax collection, concerns persist over the feasibility, fairness, and practicality of the chosen approach. The clash of interests between the municipality, hoteliers, and visitors underscores the complexity of implementing such measures without comprehensive stakeholder engagement and clear operational frameworks.

Written by 

Me, Debojyoti Dey Mazumder, one of the directors of Promise India Tourism Pvt Ltd, has been in the tours and travel business since 2010. Having experience of operating tours to different destinations of India I wish to share my knowledge to promote them through discussions, blogs, articles, photo stories etc on different platforms.