One of the reason why there has been a decrease in hotel occupancy rates in goa, is that most people are interested in hiring a homestay instead of renting a hotel room for a number of reasons. One of the main reasons is that a homestay is cheaper, any number of people can stay in the home stay, there is no restriction on the number of people in a room , unlike hotels, which allow only two people to stay in a room.
The second reason is that fewer documents are required for homestays which are less regulated, unlike hotels which ask their guests for legally valid id proof. This id proof will then be used by the tax authorities to track the money spent by the person in goa and check if the person is declaring the source of income, paying taxes on the income.
Homestays are mainly unregulated, and many of them are empty for most of the year, so the police and local authorities do not check the number of visitors to the homestay. Many of the people who travel to goa are using their black money to pay for the expenses, and they would like their expenses to remain undetected.
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