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Goa's popularity as a prime vacation spot appears to be waning. The allure of its sandy beaches and lively parties has been surpassed by more affordable options in Sri Lanka and Thailand, which are attracting tourists with their vibrant nightlife. The transition from Goa's sun-drenched beaches to other coastal paradises has been gradual, due to rising travel costs, unregulated hotel rates, and unsatisfactory tourist experiences, according to reports. The global pandemic has accelerated this trend, leading to a significant drop in foreign visitors. Data shows that foreign tourism has yet to return to pre-Covid levels, with only 1.5 million foreign visitors in 2023, compared to 8.5 million in 2019. Notably, regular tourists from countries like Russia and the United Kingdom are now opting for Sri Lanka over Goa. Many social media users have recounted their own negative experiences with the so-called "Goa taxi mafia," alleging harassment and overcharging by taxi drivers, and even incidents of physical or verbal threats against those providing rides to foreigners.

The local taxi unions opposed the arrival of ride-sharing apps like Ola and Uber in the state. They went on strike, leading the Goa government to ban both companies. With Southeast Asia and other destinations becoming more popular, the high costs and difficulties of travelling to Goa have made even Indian tourists look for alternative options. Countries like Thailand, Vietnam, and Malaysia offer better infrastructure and lower travel expenses. Some of these countries have also announced that Indians can visit without a visa. As competition from other regions increases, Goa, once a thriving tourism hub, may continue to see a decline in the number of visitors.