Sikkim Strengthens Tourism Sector by Enforcing TSD Fund Contributions for Enhanced Connectivity, Adventure Safety and Sustainable Growth

Published on December 3, 2025

The Sikkim government has launched a landmark initiative to strengthen sustainable tourism by requiring all lodging providers in the state to contribute to the Tourism Sustainable Development (TSD) fund. This move is designed to ensure that tourism growth goes hand-in-hand with infrastructure development, environmental protection, and community benefit.

According to the latest directive from the Tourism and Civil Aviation Department, every hotel, resort, homestay, bed-and-breakfast, and service apartment must collect a ₹50 fee per tourist at check-in. The collected fees are submitted to the government through the Atithi Guest Information System, a digital platform that facilitates seamless tracking and monitoring of payments. This ensures transparency, accountability, and easier enforcement for authorities.

The TSD fund, which came into effect in March 2025, will support a range of initiatives aimed at improving tourism infrastructure and services across the state. Funds collected will be used to enhance road networks, upgrade trekking trails, improve connectivity between key destinations, and develop essential amenities for tourists. By channeling revenue into infrastructure and environmental protection, Sikkim aims to provide visitors with high-quality experiences while preserving its fragile ecosystems and cultural heritage.

While many accommodation providers have already complied with the requirements under the Sikkim Registration of Tourist Trade (SRTT) Act, 2024, a significant number have yet to meet their obligations. Authorities have emphasized immediate compliance. Under Rule 83 of the SRTT Rules, 2025, establishments that fail to remit the TSD contribution are liable to a fine of ₹5,000 for the first month of default and ₹10,000 for the second month. Continuous non-compliance over three months could lead to de-registration, effectively barring the business from operating legally in the state.

In addition to regulating accommodation providers, the state is closely monitoring adventure tourism operations. Establishments offering adventure activities without the necessary permits or approvals, particularly in sensitive districts, will face strict action. This ensures the safety of tourists while protecting ecologically delicate areas.

Tourism analysts say the TSD fund represents a forward-thinking approach to sustainable tourism. By collecting a modest fee from every visitor and investing it in infrastructure and conservation projects, Sikkim has created a self-sustaining mechanism to support its tourism sector. Funds from the TSD initiative are expected to improve access to remote destinations, maintain trekking paths, strengthen road safety, and implement waste management programs, creating a more organized and eco-friendly tourism environment.

The initiative also encourages lodging providers to actively participate in the state’s sustainability efforts. By contributing to the TSD fund, establishments play a direct role in enhancing infrastructure, protecting natural resources, and promoting responsible tourism practices. This ensures that the growth of tourism benefits not only the visitors but also the environment and local communities.

Communities across Sikkim are expected to see tangible benefits from the fund. Enhanced infrastructure and improved tourist services create new opportunities for local businesses and service providers while supporting regional economic growth. Well-planned development ensures that tourism expansion aligns with environmental conservation and cultural preservation.

Sikkim’s mandatory TSD fund initiative serves as a model for sustainable tourism management, showing how tourism revenue can be reinvested into infrastructure, conservation, and community development. By enforcing compliance and integrating responsible practices into the tourism sector, the state ensures that its natural landscapes, cultural heritage, and visitor experience are preserved for future generations.

In conclusion, the TSD fund represents a major milestone in Sikkim’s tourism strategy. It establishes a system where every visitor contributes to the sustainable growth of the state, allowing Sikkim to balance tourism development with ecological preservation and community welfare. The initiative highlights the state’s commitment to making tourism in Sikkim responsible, organized, and beneficial for all stakeholders, setting a benchmark for sustainable tourism in the Himalayan region.