Sikkim makes TSD fund contribution mandatory for all tourist accommodation units
2 min read
Authorities in Sikkim have mandated that all lodging providers in the Himalayan state contribute to the Tourism Sustainable Development (TSD) fund, according to an official announcement.
The state’s Tourism and Civil Aviation department has issued directives requiring hotels, resorts, homestays, bed and breakfast establishments, and service apartments to collect a ₹50 fee from each guest at check-in. This contribution must be deposited into the TSD fund, with non-compliance resulting in penalties.
Lodging operators are responsible for transferring the collected fees to the government, which tracks payments through the Atithi Guest Information System.
Introduced in March 2025, the TSD fund supports sustainable tourism initiatives across Sikkim, including infrastructure enhancements and improved connectivity for tourists.
Tenzing Gelay Bhutia, Additional Director of Tourism, noted that while some accommodations have complied with the Sikkim Registration of Tourist Trade (SRTT) Act, 2024, many establishments remain non-compliant with this statutory obligation.
“Failure to adhere to TSD fund requirements will result in escalating penalties,” Bhutia stated. “Delinquent operators face a ₹5,000 fine for the first month of non-compliance, doubling to ₹10,000 in the second month. Persistent defaulters risk license revocation after three consecutive months of non-payment.”
