GST led to prices of goods going up, but dwindling number of price-sensitive tourists has led to more troubles for local businessmen.
The Indraprastha Market on Devka Beach Road in Daman wears a deserted look on a Monday morning. What was once a hub of tourists from nearby regions now barely has any footfall in the summer months.
A few kilometres away, Dubai market near the Nani Daman beach also presents a similar picture. This market, considered the epicentre of shopping in the Union Territory of Daman and Diu, is facing the impact of e-commerce firms taking away business on one hand, while goods and services tax (GST) is impacting prices of products.
Till about three years ago, there was not even an inch of space for shoppers to walk in both these locations. Now, either shops have been permanently closed or have a pile of overstock goods.
Ameen Akhtar, the owner of half a dozen markets on the Nani Daman beach road, said the government has been unable to do anything significant to attract the young population.
“Something like clean toilets on the beach for weekend travellers is a must. That itself is absent. Without tourists, how will our business run?” he wonders.
There has been a long-pending demand to improve the infrastructure conditions of Daman. Small business owners allege that the nearby union territory of Dadra and Nagar Haveli and its capital Silvassa are miles ahead when it comes to roads and public infrastructure.
“Tourists are choosing Silvassa and Goa over Daman, which is a sad development. Further, because of GST, the prices of finished goods have also gone up and customers are not ready to pay. They are able to get the same product for cheaper online,” added Qareem Mohammed, a textile industry association member.
Mohammed, another shop owner Biraj Shekhar and several others had made an attempt to question the local administration about a Rs 700-crore fund that was to be released from the Centre.
“We were told to not interfere in these matters. But how do we earn our living then?” asks Shekhar.
While tourists have dropped considerably over the last 2-3 years, local business community members estimate that at least 50,000 Daman residents have moved to the UK and US pursuing entreprenership opportunities. A lot of these stores that had relied on these individuals for word-of-mouth business also saw a hit because of this.
As Daman votes on April 23, small businessmen are keeping fingers crossed. As Mohammed says, it does not matter who comes to power, the authorities should at least ensure that “we are able to earn enough to sustain our families”.
Source : https://www.moneycontrol.com/news/business/tourism-shortfall-has-a-ripple-effect-on-damans-small-businesses-3869251.html
