'All tourist accommodation providers in Sikkim must contribute to TSD fund'

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The Sikkim government has ordered all tourist accommodation providers in the Himalayan state to contribute to the Tourism Sustainable Development (TSD) fund, an official said.

The Tourism and Civil Aviation department of the state government, in an order, directed all tourist accommodation providershotels, resorts, homestays, bed and breakfast establishments, and service apartmentsto contribute Rs 50 per tourist to the TSD fund or face punitive action, the official said.

Accommodation providers collect Rs 50 fee from each tourist during check-in and remit it to the government, which monitors the payment through the Atithi Guest Information System.

The Sikkim government started collecting money under the Tourism Sustainable Development Fund in March 2025 to support sustainable tourism development, including improving tourism infrastructure and facilities like roads and connectivity.

Additional Director, Tourism, Tenzing Gelay Bhutia said that it has come to the notice of the department that a few accommodation units have complied with the provisions of the Sikkim Registration of Tourist Trade (SRTT) Act, 2024, but many have not yet fulfilled this statutory requirement.

"The Tourism and Civil Aviation department directs for immediate compliance, or else, as stipulated as per Rule 83 under the SRTT Rules, 2025, any entity failing to comply with the requirements of the TSD fund shall be liable to a fine of Rs 5,000 for the first month of default, to be followed by Rs 10,000 for the second month, and shall be subject to de-registration in the event of non-compliance for three consecutive months," he added.