Sikkim Launches Tourism Sustainable Development Fund to Support Sustainable Tourism, Improve Infrastructure and Enhancing New Visitor Experience in Remote Areas

Published on November 30, 2025

The Sikkim government has launched a unique initiative for developing tourism in a sustainable manner: requiring every accommodation operator throughout the state to contribute to the Tourism Sustainable Development Fund. The new legislation should bring in significant steady revenue to fund infrastructure enhancements in the state’s tourism while ensuring that tourism development in the future will be ecologically viable and culturally sensitive.

As per an official order issued by the Tourism and Civil Aviation Department, all accommodation establishments, including hotels, resorts, homestays, bed and breakfasts, and service apartments, are now required to collect a fee of Rs 50 from each tourist at check-in time. The funds collected will be remitted to the government through the Atithi Guest Information System, which ensures that the payments are monitored and accounted for transparently.

The Role of the TSD Fund in Sustainable Tourism

Launched in March 2025, the Tourism Sustainable Development Fund represents a forward-thinking solution for Sikkim’s growing tourism sector. The funds collected will be used to improve essential tourism infrastructure, such as roads, connectivity, waste management, and sustainable accommodations, which are crucial to maintaining the region’s appeal and managing the increasing influx of tourists.

Sikkim, known for its breathtaking landscapes, diverse wildlife, and cultural heritage, has seen a rapid rise in tourism, particularly in regions such as Siliguri, Gangtok, and Kavrepalanchok. However, the state has faced challenges in balancing tourism growth with the preservation of its natural resources. The introduction of the TSD fund is an attempt to ensure that tourism development does not come at the expense of Sikkim’s environment.

By using the fund to support eco-tourism initiatives, such as eco-lodges, heritage site preservation, and wildlife conservation programs, Sikkim can continue to attract visitors without compromising its natural beauty. The fund will also contribute to improving local community services and infrastructure, ensuring that the economic benefits of tourism are distributed fairly among local communities.

Ensuring Stakeholder Involvement and Transparency

The successful implementation of the TSD fund depends on the active participation of all stakeholders in the tourism value chain. Accommodation providers will play a critical role in collecting the Rs 50 fee from tourists and ensuring that it is properly deposited into the fund. The Atithi Guest Information System will allow the government to track payments and ensure compliance. This system introduces a level of accountability and transparency, ensuring that the funds are used for the intended purposes and that no establishment avoids contributing.

However, the government is also focusing on educating accommodation providers on the importance of this system, helping them understand that the fee is a long-term investment in the state’s sustainable tourism future. Local tourism businesses are encouraged to view the TSD fund as a means of boosting local economic growth, as the improved infrastructure and enhanced visitor experiences will lead to increased demand for their services.

Tourism’s Economic Impact on Sikkim and Regional Development

Tourism is a vital component of Sikkim’s economy, contributing significantly to local job creation and business growth. The state is home to several ethnic communities, and the influx of tourists offers economic opportunities in hospitality, tour guiding, artisan crafts, and agriculture. By promoting eco-tourism and cultural tourism, the TSD fund will help ensure that tourism benefits local communities while preserving the environment.

The tourism sector in Sikkim also extends beyond traditional tourist destinations to remote mountainous regions. As more tourists explore off-the-beaten-path destinations, the local economy in these rural areas will see a significant boost, with small businesses, farmers, and local artisans all benefiting from increased exposure to visitors. The focus on sustainable tourism ensures that the long-term impacts of tourism growth are positive and equitable.

Expanding Sikkim’s Tourism Offerings

Sikkim is known for its natural wonders, including the Kangchenjunga mountain range, wildlife sanctuaries, and eco-parks, as well as its religious and cultural tourism sites like Rumtek Monastery and Tashiding Monastery. The introduction of the TSD fund allows the government to further develop and promote these tourism assets in a way that balances economic growth with environmental preservation.

The Buddhist Circuit, Ramayana Circuit, and various transnational eco-trails will receive additional funding through the TSD fund, enhancing both the quality and accessibility of these attractions. By improving infrastructure in these remote areas, Sikkim can cater to a growing segment of international eco-tourists looking for authentic, environmentally responsible travel experiences.

Ensuring Long-Term Sustainability in Sikkim’s Tourism Industry

The introduction of the Tourism Sustainable Development Fund in Sikkim is not just a short-term solution, but a long-term investment in the state’s tourism infrastructure and environmental preservation. The fund ensures that tourism growth in Sikkim can continue in a way that respects the region’s natural beauty and cultural heritage.

As tourism demand grows, particularly in the adventure tourism and eco-tourism sectors, Sikkim is well-positioned to continue its rise as one of India’s premier tourist destinations. The TSD fund will be instrumental in maintaining this trajectory, ensuring that Sikkim remains a sustainable, vibrant, and economically resilient tourism destination for years to come.

Unlocking the Full Potential of Sikkim’s Tourism Sector

Indeed, an important stepping stone to unlocking the full potential of the tourism sector in Sikkim is the introduction of the Tourism Sustainable Development Fund. By levying contributions on service providers who provide tourist accommodation, the state ensures that revenues from tourism are reinvested into sustainable infrastructure, local communities, and environmental protection.

This helps engender multi-stakeholder collaboration between the public sector and the private sector, building a more resilient sector of tourism. As Sikkim continues to draw tourists in with its offer of unusual and authentic experiences, the TSD fund will be very important in ensuring that the growth of the tourism sector in Sikkim is ecologically and socially responsible for the benefit of both the visitors and the residents.