Sikkim tourism revival gains momentum with Rs 8 lakh tourism sustainability development fund

Gangtok: Sikkim’s tourism sector has staged a steady and resilient recovery after suffering successive setbacks caused by the COVID-19 pandemic and the devastating Glacial Lake Outburst Flood (GLOF). 

With tourist arrivals rising sharply over the past two years, the state government’s introduction of the Tourism Sustainability Development (TSD) Fund has emerged as a key support mechanism, generating around Rs 8 lakh within nine months of its implementation and contributing to improvements in infrastructure, cleanliness, and environmental management across major tourist destinations.

Tourism was among the worst-hit sectors during the pandemic years of 2020 and 2021, when prolonged lockdowns and travel restrictions brought visitor movement to a near standstill. Hotels, homestays, transport operators, tour guides, and small tourism-linked businesses faced extended closures, severely affecting livelihoods across the state. Although recovery began gradually in 2022 with the resumption of domestic travel, fresh challenges arose in October 2023 when the GLOF disaster damaged critical roads, bridges, and access routes, particularly in North Sikkim, once again disrupting tourist movement.

Despite these setbacks, official tourism data and departmental working figures indicate a strong turnaround. Tourist arrivals crossed approximately 16.25 lakh in 2024, signalling renewed confidence among travellers. The recovery strengthened further in 2025, with around 17.45 lakh tourists visiting the state—the highest figure recorded since the pandemic. Domestic tourism remained the backbone of this revival, accounting for over 11.5 lakh visitors in 2025, while foreign tourist arrivals crossed 0.6 lakh, reflecting a gradual improvement in international travel.

As visitor numbers increased, pressure on infrastructure and the environment also intensified. Officials acknowledged challenges related to waste management, sanitation, road maintenance, and crowd regulation at popular tourist locations. To address these concerns, the state government implemented the Tourism Sustainability Development (TSD) Fund in April 2025, mandating a Rs 50 contribution per tourist, collected at the time of hotel or accommodation check-in. The levy applies to both domestic and international visitors, with exemptions for children below five years of age and government officials travelling on official duty.

The fund’s collection mechanism is rooted in law, following the enactment of The Sikkim Registration of Tourist Trade Act, 2024 (23 of 2024). The Act explicitly provides for the establishment of the Tourism Sustainability Development Fund, stating that a fee of Rs 50 per tourist shall be levied at the time of booking rooms in hotels, homestays, or any other accommodation units across Sikkim.

According to tourism department records, the TSD Fund has generated around Rs 8 lakh in just nine months since its rollout. While modest in absolute terms, officials say the fund has already begun delivering visible improvements on the ground. The collected amount has been utilised for cleanliness drives, strengthening waste collection and disposal systems, and maintaining basic visitor amenities in high-footfall areas such as Gangtok, Pelling, Lachung, and Yumthang Valley.

Tourism officials noted that sanitation facilities at key transit points have been repaired or upgraded, while waste segregation and regular garbage removal have been reinforced in busy tourist zones. These measures have helped address one of the most pressing challenges associated with rising tourist numbers, particularly during peak seasons. Portions of the fund have also supported minor infrastructure improvements, including better signage, pathway maintenance, and visitor convenience facilities.

The initiative has also had a positive spillover effect on community-based tourism. Local homestay operators and small tourism entrepreneurs have benefited from cleaner surroundings and better-managed tourist spaces. Officials said the broader objective is to ensure that tourism growth remains inclusive, allowing economic benefits to reach rural communities while maintaining environmental sustainability and service quality.

Looking ahead, the tourism department plans to increase awareness about the TSD Fund, bring more hotels and accommodation units under its ambit, and strengthen compliance, which is expected to significantly enhance revenue collection in the coming years. Officials expressed confidence that as participation grows, the fund will play a larger role in supporting sustainable tourism development and safeguarding Sikkim’s fragile ecology amid rising tourist inflows.