Sikkim makes TSD fund contribution mandatory for all tourist accommodation units

In a move to strengthen sustainable tourism development, the Sikkim government has mandated all tourist accommodation providers in the state to contribute to the Tourism Sustainable Development (TSD) Fund. The directive applies to hotels, resorts, homestays, service apartments, and bed-and-breakfast facilities across the Himalayan state.

According to an official order issued by the Tourism and Civil Aviation Department, every accommodation establishment must collect a fee of Rs 50 per tourist at the time of check-in and remit it to the government. The payment compliance will be tracked through the Atithi Guest Information System.

The state government began collecting the TSD Fund from March 2025 to improve tourism infrastructure, including road connectivity and facilities supporting eco-friendly and responsible tourism growth.

Additional Director of Tourism, Tenzing Gelay Bhutia, stated that although a few establishments have adhered to the Sikkim Registration of Tourist Trade (SRTT) Act, 2024 provisions, many operators are yet to fulfill this statutory requirement.

The department has warned of strict penalties for non-compliance. As per Rule 83 under the SRTT Rules, 2025, defaulters will face a fine of Rs 5,000 for the first month and Rs 10,000 for the second month. Continued violation for three consecutive months may lead to de-registration of the respective units, the directive said.

The government maintains that the initiative will ensure long-term sustainability for Sikkim’s tourism-dependent economy while promoting conservation-focused travel practices.