Suzas Beach Caf: Evolution of a Tourism Product (A case study)

Author Details: Nattuvathuckal Barnabas Associate Professor and Deputy Director Symbiosis Institute of Business Management -Bangalore Constituent of Symbiosis International (Deemed University) 95/1, 95/2, Electronic City, Hosur Road, Bangalore -100

Phone: 91-80-66389918 Fax: 91-80- 6638 9996

Email: barnabasn@hotmail.com

Suzas Beach Caf: Evolution of a Tourism Product (A case study) Abstract: A chef returned from the Middle East begins to serve food on beach side to hippie tourists who frequented the Goan beaches in the late 1970s. What begins as a pastime for an entrepreneur emerges as a unique tourism product- popularly known as shacks- for the travelling tourists and an opportunity for many other entrepreneurs. Shacks become an important reason for tourists to gather on the beaches. However, seasonal nature of the business and sudden growth in tourist inflow attract too many new players who dont have genuine interest in contributing to the healthy evolution of the product into a greater tourist experience. Too many numbers of shacks results in governmental interventions and an annual licensing practice which further lead to political interference and feud between traditional and non-traditional shack owners adversely affecting the tourist experience of the product. Further, political interference and less thought policies add to the woes. Meanwhile many shifts occur in the profile of the tourists visiting the shacks impacting drastic product adaptations questioning the very authenticity of shack experience. Introduction Like many other expatriate Goans do, Mr. Ravi Suza took an early retirement from his career as chef in the Middle East in 1976 to spend some happy and peaceful time back home in Goa. Having worked in the Gulf countries for 20 years Suza found life without work back home boring and felt he should do something rather than wasting time. He consulted his uncle. Soon he got uncles advice as to start a restaurant, a business he was already familiar with. Suza wondered where to start the restaurant and his uncle suggested he starts it on the beaches as there were a few European tourists frequenting beaches of Goa during seasons. Suza was confident of serving good quality continental dishes that he was used to preparing while in Gulf. However, there were other issues. Beaches lacked in electricity supply, did not have any structures in place to arrange for seating and serving food. Moreover, the existing rules prohibited any permanent structures on beach side. Suza felt the idea of serving food on beach side without any such facilities much below his kind of a persons dignity but, decided to go ahead with the idea since most members in his family encouraged him into it.

A caf on Goan Beaches In the mid 1970s Goa - a tiny state in the western coastal belt of India- had still not made a mark in the global tourism map. With 33 pristine sandy beaches the land was so blessed with abundant natural beauty that in the early 70s the Hippies from England1 identified the spot to their liking

and spent many months every year in a care free life with nature. The beaches popular among these tourists were Baga, Calanguate and Anjuna in north Goa and Colva in south Goa. While these tourists found the beaches of Goa pleasant and comforting they faced difficulties especially in finding food appealing to their continental taste buds. The conventional Indian food was too spicy for the westerners. Spices and vegetable oil, either coconut oil or mustard oil, were

important ingredients of Indian food preparation that the tourists were not comfortable with.

When Suza started serving continental food to the tourists at Baga beach under a thatched roof it became a perfect offer to the long felt deprivation the Hippy tourists had been in. However, initial objections came from a few tourists themselves, especially from a lady tourist who objected that the structure blocked free view of sea from her beachside temporary home. Suza argued that he was a local person and he should have freedom to run a business in his own village and thus tackled the resistance. Suzas restaurant neither had any facility for cooking nor electricity supply. He cooked stuff at home 10 kilometers away and carried it in vessels to Baga using public transport and served to tourists on the beach. Evening food was served in candle light. Other initial perils included poor bus connect to the spot (one bus every two hours), lack of ingredients like butter, cheese and others meant for continental dishes. Though getting these necessities was tough he succeeded in getting regular customers. Fishes of different varieties were especially liked by the tourists. The fish served was invariably fresh and cheap, and never smothered in heavy sauce. There was something special about the place with its minimalism, natural setting, laid back but engaging service that was usually screened out in a cozy city restaurant. Suzas offers found easy acceptance among the tourists as a substitute for usually available spicy Indian food that was not palatable for visiting tourists.

Finding workers who felt it not a shame to work for a beach restaurant was difficult. People felt it below their dignity to work in what the owner called a Beach Caf and what foreign tourists called a Chai Shop meaning a tea shop and a Shack (because it looked like a shanty or a hut). As he found it impossible to get people willful to work in his restaurant Suza fell back to the same people who prompted him into the business, his family. The whole family of Suza including wife and kids got into the business of running the first beach caf on Goan beaches. Besides the tourists, locals (mostly businessmen from close by Mapusa city) visited Baga on 2

weekends. Their tastes differed significantly from that of foreigners as they ridiculously called vegetable salads preferred by foreigners as grass meant for cows.

Growth and Regulations By the early 80s Shacks gradually developed into a unique phenomenon on Goan beaches that were primarily an answer to the felt needs of visiting foreign tourists run fully by entrepreneurs belonging to local community. A typical shack had around 6 tables that could serve 24-30 people for a whole evening. Shack owner used wood, bamboo and matted leaves that helped him to be fully functional during the season but at the same time be cost effective. Unlike typical customers who would spent just as much time it takes to finish a meal the tourists spent a full evening over a meal. The presence of the shacks turned Baga into a meeting place for tourists from nearby beaches Anjuna and Vagator as well. Shacks slowly developed a distinct identity in the minds of the tourists a major cause to hang out in the beaches. Though initially tourists were primarily Hippies by mid eighties Goa with its shacks had become very popular in the western world that even Hollywood celebrities like Richard Gere on tour dined at Suzas restaurant.

The presence of shacks just above the high tide line from mid-October through May gave easy access to food for tourists who intended to spend most of their time during the tour by beach side. Though these tourists took occasional dip in the sea they spent maximum time on the shore than inside the water. Shack on the shore assured them of whatever they needed in between. Unlike in the western cafes a menu board at Suzas was pinned next to kitchen announcing delicacies of the day. Tourists also took interest in the caf providing their input in preparing dishes, art of food presentation and in clearing tables. They also had their suggested cooking styles. Thus, Goan shacks developed an appearance as well as attitude that evolved out of cocreation by the tourists as well as the owners.

As the number of tourists visiting Goan beaches increased more local entrepreneurs found an opportunity to tap the market. By 1982 four other shacks came up in Baga. Around the same time Suzas caf along with others on the beach got electricity supply. In 1984 the Department of Environment and Forest, Government of India introduced the Coastal Regulation Zone (CRZ) norms. As shacks fell under CRZ they were supposed to be only temporary structures. Besides, 3

beach being a public place it was mandated by the state tourism department that setting up and operating a restaurant on the beachside required license from the Department and from the Captain of Ports. The procedure for attaining license was that an application had to be given to local Panchayat (i.e. the local self governing body at the village level, which is the lowest tier of government of India) which in turn got forwarded to the Department that gave license for a year (practically for a season October through May).

Arrival of Chartered Tourists: A major development in the tourism history in Goa was the arrival of German Condor flights carrying chartered tourists in 1985. Chartered tourism meant that a pool of tourists (usually about 500) from Europe could now visit Goa at an economical rate if they booked journey with an operator who carried all of them together to Goa. These operators usually provided to-and-fro travel, accommodation with free breakfast for a specific number of days (usually a fortnight) for a fixed sum. This package attracted more tourists belonging to lower social classes of Europe to Goa. These tourists found shacks befitting their budget as well as providing the premium of beach side dining experience. It was the chartered tourists who named the beach restaurants of Goa Shacks. The sun tanned hippies who normally came from affluent backgrounds, however, disliked the arrival of white tourists (the chartered tourists were not sun tanned and had too fair a complexion for the hippy eyes). Goas attraction as a tourist location continued growing primarily due to the growth in chartered tourism. The majority of the chartered tourists were repeat visitors, mostly students, carpenters, masons, plumbers et al. who considered Goa as a cheap holiday destination. Suza instructed his boys (stewards/waiters) not to ask customers about their trade/occupation even during casual converation. Though the number of chartered tourists increased Hippies gradually stopped visiting Goa and its shacks. The shift from hippies to chartered tourists also brought demand for pan European food as chartered tourists belonged to different parts of Europe like, UK, Germany, Portugal as well as the Scandinavia. Besides regular dishes Suza organized for paintings, cakes and pastries display at his shack.

With the arrival of chartered tourists in bulk more entrepreneurs showed interest in opening up shacks. By 1985 there were 6 shacks in Calangute, 4 in Baga and 7 in Colva. Mr. Abhi Suza the elder son of Mr. Suza took charge of the caf that was by this time named Suzas Cafe. As the 4

number of shacks on the beach increased, getting a shack license became tougher. The department of tourism was interested in ensuring that only a limited number of shacks were permitted and that no one runs a shack without a valid license. Moreover, licenses were given with validity for a year. Since getting license was tough interested parties sought support and influence of local politicians in getting licenses allotted. In many similar cases the local politician used to be considered the ultimate influencer. This led to political interference in the way licenses were granted to shack operators. Politicians showed interest in giving licenses to persons who worked for them during elections or favored their political party. As the number of tourists visiting Goa kept increasing traditional shack owners did not feel the heat of competition and the favorites of politicians continued getting licenses. However, there were objections and concerns raised on the number of shacks mushrooming on the beaches in the local media. The Department of Tourism responded by restricting the number of shacks on each beach. Only 21 shacks in total were permitted in 1990. It was also suggested by the department that 5 people get together and run one shack so that more people got the opportunity to be involved in the trade. An influential local politician filed a petition against restricting number of shacks on the beaches.

As there were no criteria in existence for granting license a seven-point guideline was put in place for licensing shacks for one year (effectively for the six months of tourist season). Shack owners raised objection since one year license practice did not support the shack business model. All recurrently used equipments, entrepreneurs own skills, and labor went wasted for a shack owner in case s/he didnt get license to run it in the following year. Around these developments the Shack Owners Welfare Association wherein most of the traditional shack owners were members was formed and they had their first meeting in Maria Bhavan, Benaulim. Abhi Suza was chosen President of the Association.

Competition from Hotels As the number of chartered tourists increased through the late 1980s resulting in increased number of shacks hotels in Goa felt that shacks meant huge opportunity loss for them. As per rule hotels could not run shacks on beaches and the licenses to run shack would be granted to people belonging to the village where the beach is. The inherent advantages that shacks had took business away from the hotels. Shacks were right on the beach where the tourists spent most of 5

their time. Tourist who wanted to take a swim and relax on the beach for a while found shacks very convenient. There was also a perception that shacks offered fresh food made of fresh supplies and were able to offer delicate sea food at a low price. In many cases most members in a family worked in their shack. In most cases waiters worked in a single shift. Shacks provided a personalized, informal, safe and comfortable atmosphere. Proactive shack owners took these experiences to higher realms resulting in quite a few tourists patronizing the shack.

Hotels had to resort to means by which they ensured that the tourists staying with them also had food at restaurants attached to the hotel rather than at the shacks which had by now become the practice. Promoting tour packages including food was an option hotels tried but did not succeed. With their influence on the tourist operators brochures and leaflets were distributed to tourists planning to visit India wherein India was described as a place where you couldnt get everything you would need and that most restaurants closed by 8 pm thus prompting the tourist to go for a package that included not only stay but also food at the hotel restaurants.

Shacks were also alleged to be a violation to CRZ norms. This did not have much of a hold since the CRZ did not cover temporary structures. The other issue raised was about the mismanagement of garbage generated on the beach by shacks. In 1993 the department of tourism, Government of Goa, brought norms by which cooking on the beach was banned effectively making shacks dysfunctional. Shack owners alleged hotel lobbys influence behind this rule. They resorted to demonstrations and morchas that were covered by both Indian and foreign media. Around this time a committee called the Oskar Committee was appointed to study tourism in Goa and suggest measures for development. The Oskar Report had been drawn up on the basis of a visit to the beach during monsoon when there were no shacks on the beach and the report made no references to shacks. Though the restriction on cooking food on the beachside was withdrawn, Governments stand of restricting number of shacks continued. The total number of shacks to be licensed was determined to be 202, the number that was operating in 1992, and no more. However, by mid 1990s as the tourist inflow to Goa went considerably up and the beaches got crowded with too many shacks, many of them run without a license.

There were also allegations that the village panchayat officials gave licenses to those who were the local politicians favorite and that even illegal shacks flourished under their patronage. In 1994 the department of tourism decided to take up the responsibility for issuing licenses for shacks. The department received too many applications for new licenses that it decided that the license for the coming year would be allotted based on lottery. Licenses were also decided to be allocated for a fixed fee. Families that traditionally run shacks objected to the lottery idea as they were not ready to run their shack just in case they were lucky. They had built a brand name that expected them to operate every season. The department solicited applications for lottery draw. The shack owners made applications for the license under protest and did not fill in any other details in the application form other than the name and address of the applicant. Abhi, on behalf of the shack owners welfare association, filed a petition against the lucky draw practice. However, the new generation shack owners and people interested in making quick money by subletting the allotted licenses got together and formed another association and got support of a few local politicians. These shack owners welfare association and the newly formed group have been fighting cases in the court ever since. Almost every year since the mid 90s the shack owners have eagerly awaited for court order on how licenses would be allotted to shack owners each year. Meanwhile a few local politicians allegedly tried to break the shack owners welfare association by assuring licenses to fractions in the association. In 1994 the process of license allotment was still under dispute in court. The court took up the case on priority since it was already November- December 1994. The traditional shack owners had already begun putting up the shacks, pending issue of license. A copy of the Oskar report was given to the judge, without a copy being provided to the shack owners association. According to the shack owners association the report did not have a mention of shacks and the Court held that the Government was at liberty to frame new guidelines as there were no evidences of shacks existence in an authentic study conducted by the state. As Convenor of the Shack Owners Association, Abhi agreed in court, to take down the shacks already in place. Following this, Abhi took down his shack; however many shack owners did not follow suit.

The traditional shack owners approached the then Chief Minister through a local MLA who they found a supporter. The Chief Minister set up an enquiry committee. The Committee recommended no demolition but only stoppage of serving food till the lottery was drawn. Shack owners who were not lucky in the draw but had already set up their shacks bought licenses for a premium from the ones who got it allotted. Abhi felt backstabbed as he had already demolished his shack and left for Middle East for a year. He came back the next year and started a shack after buying a license from someone luckier. Others felt sorry since the pioneer of Goan shacks had to buy license to run shacks from others! The lucky draw brought more applicants, many of them without an interest in setting up one, to the shack game so that they could make some quick bucks by subletting the license. A development quite unexpected by the traditional shack owners was that these licenses could also be sold to interested parties who hailed from outside the state. Thsu, shack licenses were also bought by businessmen from other states who owned restaurants in other parts of the country and also by Israelites and Russians. These new owners tried to augment their product offers with ambience and food comparable to the regular city restaurants.

Domestic Tourists

Post 2000 there was an influx of domestic tourists to Goa beaches, so far an attraction only to foreign tourists. Domestic tourists inflow also paved way for a move from seasonal tourism to a year-round tourism. Domestic tourists were largely from Mumbai, Delhi and Bangalore and were weekend and festive time tourists. The weekend tourists were mainly young men and women on a fast track life who came to Goa for a quick unwind in a day or two. They were so drastically different from the tourists of the 70s and 80s who spent months on the Goan beaches and even from the chartered tourists who stayed for a fortnight. Shacks, especially the new generation owned ones, began addressing domestic tourists preferences in both food and ambience. Shacks now gave elaborate decor and extensive menus. The traditional shack food gave way for Chinese, north Indian and Mughal dishes available in most Indian cities. Minimalism slowly disappeared from the cooking, replaced by heavy, restaurant-style slop. The seating in shacks were made cozier, the sides of the shack were covered, floors were carpeted, menus were kept on the table, and aggressive stewards in uniforms suggested and served food quickly to the customers. Bollywood fast numbers came in place of the Beetles and Rolling Stone. Few of the 8

waiters were locals anymore and new waiters from UP, Bihar, and Nepal took position. The laidback Goan pace slipped to frantic hard-sell. Prices rose higher than in sit-down places on the main street. Some of the shacks on Goan beaches looked more like restaurants and unbecoming of the name shack.

Some of the domestic tourists, especially young men in group, were also found to be occasionally misbehaving to foreign tourists, especially during Christmas and New-year eve. Of late crime against visiting foreign tourists have increased in Goa resulting in increasing caution given by foreign governments to their travelling citizens and a dip in the number of foreigners visiting. In the year 2008 the tourism department of UK cautioned its citizens to avoid Goa from visit due to the rape and murder of a teenage British girl in Anjuna beach in the previous year. However, the inflow of domestic tourists kept growing especially after the privatization of the domestic airlines industry and the introduction of low cost airlines like the Jet Lite, Kingfisher Red and Deccan that operated daily flights to Goa from major cities.

Recent Shack Policy Illegal shacks still operate on the beaches of Goa. In 2008 licences allotted were only for 23 shacks in Baga, but there were around 50 shacks operating on the beach side. Abhi estimated the initial set up cost to be about Rs.8 to 10 lakhs/ shack including cost of having a firm flooring (of plywood) and expected it to go up by 15% annually. The lottery and licensing practice continued. Every year the state tourism ministry announces a shack policy for the year. A shack policy for the year 2009-10 was announced by the tourism ministry on September 9, 2009. Six key departments of the government namely fire, police, excise, health, commercial taxes and FDA, as per the policy, shall be asked not to grant any license for shacks without co-ordinating and confirming applications with the tourism department. The policy proposed to control illegal shacks on Goan beaches. In the previous year there were reports of around 150 illegal shacks. The department of tourism proposed to increase the total number of shacks permitted for the year to 306 (47 more than the previous years permission, 199 in North Goa, 106 in South Goa). The policy proposed the following; 1. One shack per family. And the shack should be erected within 15 days of getting permission 9

2. 3. 4. 5. 6.

Shacks have to be cleared as soon as the season ends (May 31, 2010) Structures shall not exceed 15mtsX 8 mts in the A and B categories respectively. The fee for A category to be 50,000 and that for B to be 40,000. Each allotted may get to put up ten pairs of deck-beds with ten umbrellas Hoteliers with beach frontage may be restricted to 20 beds and 20 umbrellas.

Shacks are also expected to operate in designate areas and shall not be permitted to operate in areas demarcated for water sports, bathing and fishing. The disputes between the shack owners association and the new generation shack owners are still fought in the court. The department of tourism now prioritizes experience of the shack owner (i.e. how many years he had been running shacks) in allotting the location for setting up the shack ones the lottery is drawn.

Conclusion Abhi never got a license allotted in a lucky draw since the lucky draw practice started. Today he employs 5 boys for service and 6 boys in the kitchen hailing from nearby villages of SalcetteCansaulim, Verna, Sanguem. He has trained his boys to greet the customers with a friendly smile, since they were the point of contact with the customers. Most other shacks have their employees entirely consisting of migrant workers from north India. Work at shack begins at 7 a.m. and goes up to 11 p.m. Though in the past Abhi bought fish from the fisher folk on the beach, as time passed, this became expensive and he now buys fish from Panaji city market. Abhi feels that Goa does not get high spending tourists. In his estimate, most of the chartered tourists came on a holiday spend budget of 200 to 400 pounds. As a practice, he does not offer credit, but sometimes for customers who were regulars at his shacks, he did grant credit and consequently ended up losing money. He hoped for a season where traditional shack owners got licenses without a lottery draw, a process that would not take six separate permissions every year, had no competition from illegal shacks, foreign tourists continued visiting in larger numbers, the hotels did not lobby against shacks and the tourists and local youth behaved well with other visiting tourists, and the Goan Shack got back to its true identity. End Note:
1

Though the hippie movement started in the USA in the 1960s it was the ones from England

who frequented Goan beaches in the 1970s. 10