Tourism Dept clarifies on TSD collection & implementation concerns

GANGTOK,: The State Tourism department has given a detailed public clarification on concerns raised regarding the Tourism Sustainable Development (TSD) Fund and the Atithi GIS/App.

In a press statement Saturday, the Tourism department highlighted that the TSD Fund has been instituted under the Sikkim Registration of Tourist Trade Act-2024 to promote sustainable tourism, strengthen tourism infrastructure, improve visitor management, and support tourism allied services, including the cross-checking of GST collection across the State.

At present, 280 registered hotels and accommodation units are collecting the TSD Fund through the Atithi platform.

Since implementation, approximately Rs 9.98 lakhs have been collected from 19,969 tourists, of which Rs 8.86 lakhs have been credited to the department, with the remaining amount pending deposit by concerned hotels and accommodation units. The levy of Rs 50 per tourist is modest, transparent, and comparable with visitor management mechanisms adopted by several responsible tourism destinations across the country and the world, maintained the department.

“It is categorically clarified that all TSD Fund collections are credited directly into the Government’s revenue head – 1452/TD-800, other receipts. The claim that 40% of the fund is being diverted to a private company is incorrect and misleading. The actual service charges payable to the technology service provider are substantially lower and are released only after due reconciliation, on the 5th of the subsequent month, strictly in accordance with the approved service agreement and the provisions prescribed under SRTT Rules 2025,” said the Tourism department.

The department stated that the service provider was engaged after following the due procedure. The engagement is for the development, operation, and maintenance of the Atithi GIS/App, analysing the data as per the government's requirement, sharing it with enforcement agencies, and related technical services, and does not involve any unauthorised revenue sharing, the department.

“The government acknowledges that certain operational issues were experienced during the initial phase of implementation. These are being addressed through continuous system improvements, stakeholder consultations, and capacity-building measures.”

As per the department, the Atithi GIS/App is a specialised, tourism-specific platform requiring continuous upgrades, on-ground technical support, interoperability with multiple stakeholders, and round-the-clock operational management.

While the State IT department plays a vital role in governance IT systems, the engagement of an external specialised service provider for such domain-specific solutions is a standard and accepted practice across governments, said the department, stressing that this in no way undermines the capability of the State’s IT institutions.

The Tourism department reiterated its commitment to transparency, accountability, and sustainable tourism development. Stakeholders and the public are urged to rely on verified facts, said the department.