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Sikkim's ₹50 tourism toll sparks debate

Business Standard

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March 24, 2025

State argues 'entry fee' for travellers will boost infra and instil ownership of sustainable tourism. But critics call it unjust and a burden on the sector. ADITI PHADNIS weighs in

Sikkim's ₹50 tourism toll sparks debate

"Please don't call it an entry fee," implored Sikkim Principal Secretary (tourism) CS Rao on the phone from Gangtok amid reports that the state government has begun imposing a ₹50 'entry fee' on all tourists coming to the state beginning March 14.

"It is not a tax or a cess at all. It is not an entry fee. It is just our way of infusing ownership of sustainable tourism in Sikkim's hospitality industry," Rao said.

In August, he explained, the Assembly passed the Sikkim Registration of Tourists Trade Act 2024. This envisaged a ₹50 charge on hotels, homestays, and other accommodation, which would collect the one-time charge, valid for 30 days, from all tourists above five years of age staying overnight at any property in the state. The money collected by the hotel or homestay would be paid into a Tourism Sustainability Development Fund (TSDF) and utilised to strengthen tourism infrastructure in the state.

Sikkim, India's most ecologically conscious state, has the highest per capita income among all states in India. It banned single-use plastics in 1998, several years before the central government did so in 2022. In 2016, it banned the use of packaged drinking water in government offices and events, as well as Styrofoam and thermocol disposable plates and cutlery. The same year, it was declared India's first fully organic state, an achievement recognised by Prime Minister Narendra Modi.

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