Gangtok, Jan 10: Sikkim’s tourism industry has shown a resilient and steady revival after being battered by back-to-back crises triggered by the COVID-19 pandemic and the devastating Glacial Lake Outburst Flood (GLOF), with rising tourist inflows over the past two years restoring confidence in the sector.
According to official data, tourist arrivals have climbed sharply, crossing around 16.25 lakh in 2024 and further rising to nearly 17.45 lakh in 2025, the highest since the pandemic years. Domestic tourists continued to drive the recovery, accounting for more than 11.5 lakh visitors in 2025, while foreign arrivals crossed 60,000, indicating a gradual return of international travel to the Himalayan state.
Tourism had been among the hardest-hit sectors during 2020 and 2021, when lockdowns and travel restrictions brought activity to a halt, leaving hotels, homestays, transport operators and guides without income. While the situation began improving in 2022, the sector faced another setback in October 2023 when the GLOF disaster severely damaged roads, bridges and access routes, particularly in North Sikkim, once again disrupting tourist movement.
As visitor numbers rebounded, the state government introduced the Tourism Sustainability Development (TSD) Fund in April 2025 to manage the growing pressure on infrastructure and the environment. Under the initiative, a Rs 50 contribution per tourist is collected at the time of hotel or accommodation check-in, applicable to both domestic and foreign visitors, with exemptions for children below five years and government officials on official duty.
The fund is backed by The Sikkim Registration of Tourist Trade Act, 2024, which provides a legal framework for levying the sustainability fee. Within nine months of implementation, the TSD Fund has generated around Rs 8 lakh, which officials say has already begun translating into visible improvements across major tourist destinations.
Tourism department records indicate that the collected amount has been used for cleanliness drives, strengthening waste management systems, upgrading sanitation facilities and maintaining basic visitor amenities in high-footfall areas such as Gangtok, Pelling, Lachung and Yumthang Valley. Improved garbage collection, waste segregation and repairs to public toilets at transit points have helped address one of the key challenges associated with rising tourist numbers, especially during peak seasons.
Officials said the initiative has also benefited community-based tourism, with homestay operators and small tourism businesses gaining from cleaner surroundings and better-managed tourist spaces. The broader aim, they added, is to ensure that tourism growth remains inclusive while protecting Sikkim’s fragile ecology and improving visitor experience.
Looking ahead, the tourism department plans to expand awareness of the TSD Fund, bring more accommodation units under its coverage and tighten compliance, which is expected to boost collections in the coming years. With tourist inflows continuing to rise, officials expressed confidence that the fund will play a crucial role in supporting sustainable tourism and safeguarding the state’s natural and cultural assets.
