Online permit system at consultation stage, not yet implemented: CM

BIJOY GURUNG

Massive revenue loss through permit mismanagement prompts AI-driven system proposal

The scale of the revenue leakage becomes evident from the figures. Against 15.67 lakh tourists visiting the Nathu La circuit last year, the government received only around Rs. 3 crore in permit fees, as against an estimated Rs. 31 crore that should have accrued to the State.

The issue could extend beyond Nathu La, with similar revenue losses potentially occurring in other Restricted and Protected Areas such as Tsomgo Lake and North Sikkim. This assumes significance as Sikkim recorded 17.12 lakh tourist arrivals in 2025, while the State had already crossed the one-million visitor mark by the end of May this year.

The mismatch is now prompting the Sikkim government to propose an AI-based Integrated Online Permit System for Restricted and Protected Areas, with the stated objective of plugging revenue leakage and bringing greater transparency to the permit process.

At the outset, Chief Minister Prem Singh Tamang-Golay has assured Sikkim tourism stakeholders that the proposed AI-based Integrated Online Permit System for Restricted and Protected Areas is presently at the consultation and discussion stage only and has not yet been implemented.

“It is important to clarify that the proposed system is presently at the consultation and discussion stage and has not yet been implemented. The Government is engaging extensively with tourism stakeholders to understand their concerns, assess the existing challenges and incorporate their valuable suggestions before taking the matter forward,” said the Chief Minister on Tuesday.

Golay was sharing details on his social media page after attending a daylong stakeholders’ consultative meeting organized by the Tourism department on the proposed Integrated Online Permit System for Restricted and Protected Areas of Sikkim.

“The primary objective of introducing such a system is to address revenue leakage and ensure that legitimate revenue generated through tourism is duly realised by the State. We have observed a considerable disparity between the tourist data entering Sikkim and the revenue being realised through tourism-related permits and activities. Addressing this gap is essential in protecting the economic interests of the State and, consequently, the interests of the people of Sikkim”.

Speaking with the media after the meeting, the Chief Minister reiterated that the new permit initiative is just a proposal at the moment, and no private agency has been authorized to operate it. The way forward would be charted by the State government after taking feedback from the tourism stakeholders of Sikkim, he said.

Golay then explained how lack of a technology-driven permit management system is bleeding the State’s tourism revenues.

“Last year around 15.67 lakh tourists went to Nathu La. Permit fee is Rs. 200 per person and if we go by this, the government revenue should be around Rs. 31 crore but only Rs. 3 crore came to the government. We lost Rs. 27 crore. Where did that money go? It was a 77% loss of revenue for the government.”

Hence, the most convenient way to stop this government revenue loss is to have an online permit system, he said.

The Chief Minister then assured that permit authority will remain with the government, besides protection for the Sikkim tourism stakeholders.

“Permit authority will remain solely with the Tourism department. Permit application is only for the local tour operators, travel agencies and tourism service providers of Sikkim. Tourists will contact our Sikkim-registered agencies for permits. The agencies need to be registered with the Tourism department to apply for permits for their clients which will be given immediately to them online,” he said.

Under this proposed system, the permit fee directly goes to the Tourism department’s accounts and will ensure total transparency, as the online records will show how many tourists came and how much revenue was generated, he said.

Taking the protection of local interests further, the Chief Minister informed that the proposed online permit system would be accessible by Sikkim-based agencies only. We will do geo-fencing by which the portal will not open outside Sikkim, which means only tour operators and travel agents of Sikkim can access it and apply for permits, he said.

He added that Sikkimese visiting the Restricted and Protected Areas need only to upload their domicile documents while applying for permits and they do not pay for it. He maintained that permits are required only for the Restricted and Protected Areas like Tsomgo-Nathu La in East Sikkim and North Sikkim beyond Toong.

The Chief Minister further mentioned that the proposed online permit system would be operated by a service provider selected through a tender process, and the government will welcome qualified local persons to come forward.

“The agency being considered for development of the system will function strictly as a service provider and not as the owner or beneficiary of the revenue generated. The Government will only bear the applicable service charges for the services provided. At the same time, if any qualified local individual or entity has the requisite capability and wishes to propose a similar system, our government remains open to examining such proposals in accordance with due process.”

He informed that several suggestions were made during the daylong consultative meeting, and a committee will be formed to review and consider the suggestions.

“Today’s consultation was constructive and provided important insights into the concerns and challenges faced by local stakeholders, tourism operators and visitors. These inputs will enable our government to further examine and refine the proposed system. Our priorities remain clear: strengthening roads and infrastructure, improving public amenities, facilitating ease of doing business for local tourism stakeholders, and ensuring that the benefits of Sikkim’s tourism economy accrue meaningfully to the people of Sikkim,” said the Chief Minister.

Addressing the meeting earlier, Tourism minister TT Bhutia highlighted that tourism is a vital sector of the State and emphasised the need for an online permit system in view of the long-standing demands of tourism stakeholders. He stated that the proposed system would benefit all stakeholders by making the permit process more efficient and accessible. He further assured that the department would identify and address the existing shortcomings and strengthen the system to ensure its effective implementation, informs an IPR release.

In his welcome address, Tourism Department chairman Sonam Norgay Lanchungpa highlighted the key features and objectives of the Integrated Online Permit System, focusing on revenue generation, curbing overcharging, strengthening tourist safety and security, and safeguarding the interests of tourism entrepreneurs.

In his presentation on the Integrated Online Permit System, Commissioner-cum-Secretary, Tourism and Civil Aviation department, Raj Yadav, gave a detailed overview of the proposed AI-driven smart permit management system. He highlighted tourist footfall analysis, revenue projections, potential revenue leakages, the chronology of the existing permit process, current procedures and key friction points, as well as the roles and responsibilities of authorities involved in permit issuance.

He further elaborated on the proposed digital transformation and institutional framework, emphasising the principle of “One Permit, One Agency.” He outlined the various categories of permits to be issued, portal users and their access rights, including those of registered tour operators, permit-approving officers and the core rules governing permit issuance.

He also explained the processes for application creation and validation, stating that permit applications would be routed exclusively through registered tour operators, thereby ensuring a structured, transparent and accountable permit issuance mechanism, the IPR release adds.