Sikkim hotels seek tech-based solution for tourism development fund rollout

Sikkim’s hotel and restaurant sector has raised concerns over the state government’s plan to implement the Sikkim Tourism Development Fund (STDF) from October 1, calling for a more practical, technology-driven approach.

The Sikkim Hotels & Restaurant Association (SHRA) highlighted challenges in the current collection system, which requires hotels to collect the funds from every guest, deposit it in their accounts, remit it weekly to the government, and log details into complex software.

SHRA said this process adds heavy administrative burdens, risks conflicts with guests at check-in, and may complicate accounting and GST compliance.

According to SHRA, less than 40 per cent of hotels in Sikkim are registered with the Tourism Department, leaving many establishments outside the system and increasing the likelihood of non-compliance. The association also questioned claims that STDF collection would help track GST, noting that GST is calculated based on room rates, not guest numbers.

As an alternative, SHRA proposed a QR code-based payment system. Tourists could pay STDF online, receive instant digital receipts, and allow hotels to verify payments without handling funds directly. The association said this method would ensure full collection while easing operational pressures on hotels and providing a smoother experience for visitors.

A delegation from SHRA met the Minister of Tourism and Civil Aviation to discuss these issues. The minister assured intervention before the October 1 rollout. Other concerns raised included restaurant and nightclub closing times, GST registration challenges, and broader sectoral issues.