Edit

The Unseen Cost of Underpriced Parking in Goa: Who Really Pays?

Herald Team

Goa’s urban spaces are increasingly under pressure, and nowhere is this more evident than in the undervaluation of car parking space—a precious resource that is grossly underpriced. While paid parking has been introduced across cities in Goa as well as popular beaches, they fall woefully short of reflecting the true value of the land they occupy. This undervaluation perpetuates a reliance on cars that hinder essential transportation reforms and impedes sustainable growth across the entire region. At the same time, the political power of the taxi lobby further complicates efforts to modernize Goa's infrastructure.

Mispricing Space

Parking fees in places like Panaji have been implemented as part of sustainable planning initiatives, but they are far from adequate. To put this in perspective: consider that the average price of land in Panaji is about ₹1.5 lakh per square meter. A standard parking space, roughly 12.5 square meters in size, would therefore be worth approximately ₹18.75 lakhs. If we assume a reasonable return on this investment—say, 5% annually—the cost of providing that parking spot should be around ₹93,750 per year. This equates to about ₹257 per day or approximately ₹32 per hour.

Despite this, current parking rates are much lower, often around ₹10 per hour, or even ₹20 at most. This gross underpricing means that the true value of this prime space is not being realized. In reality, parking fees in Panaji should be closer to 3x per hour to truly reflect the cost of land and the opportunity cost of not using it for other, more productive purposes.

Hidden Costs We’re Ignoring

The problem with underpricing parking isn’t just about undervaluing land; it’s about the broader hidden costs that Goa is paying—costs that extend far beyond the immediate revenue lost. Every additional car on the road adds to traffic congestion, increases pollution and contributes to the wear and tear on public infrastructure. These are costs borne by everyone, but particularly by those who cannot afford private vehicles and are left with inadequate public transport options.

When parking is cheap, it essentially subsidizes car ownership, benefiting those who can afford it while marginalizing those who cannot. The social impact is significant: the wealthy enjoy the convenience of parking their vehicles cheaply, while the less affluent are left with subpar public transport options that are inefficient and underfunded, limiting their access to employment, education, and essential services. This disparity deepens social inequalities and hampers economic mobility.

The Politics of Inaction

Adding to this complex scenario is the influence of Goa’s taxi lobby, who have long resisted transportation reforms that could otherwise modernize the state’s infrastructure. While their concerns about protecting their livelihoods are understandable, their resistance is increasingly counterproductive. They are protesting rent-a-car and other private taxi services that take away their business - do they not realize that such services are a market response to the constant price gouging and intense monopolistic practices by the same taxi lobby? By opposing any form of reform that takes away their monopoly, they are making the situation worse for everyone, including themselves in the long run.

This political maneuvering is a major obstacle to the comprehensive reforms that Goa urgently needs. The focus should be on addressing the larger issues of space management and transportation efficiency, but these conversations are often derailed by the taxi lobby's resistance to change. The failure to address these broader issues not only limits the region's progress but also keeps Goa locked in outdated and inefficient practices.

Social Cost of a Car-Centric Society

The current approach to parking and transportation in Goa is inherently flawed, rooted in a mindset that prioritises cars over people. This car-centric focus not only clogs our roads but also stifles the development of more sustainable and inclusive transportation options. The social costs are immense, disproportionately affecting the less privileged who rely on public transport. It’s these individuals who pay the highest price for our failure to properly value urban space.

Goa’s parking policies, as they stand, effectively subsidize the wealthy while leaving the poor with fewer choices and higher costs. Meanwhile, those without private transportation are left to grapple with a public transport system that is often inefficient and unreliable. The lack of affordable, high-quality public transportation exacerbates this inequality, making it harder for those without cars to access essential services and economic opportunities. This is not just an issue of fairness—it’s a barrier to the state’s economic and social development.

Need for Comprehensive Reform

Regions around the world that are thriving economically have made significant investments in public transportation and pedestrian-friendly infrastructure. These initiatives do more than just reduce congestion; they enhance the quality of life, promote social equity, and support sustainable economic growth. Goa must learn from these examples and implement similar reforms if it is to remain competitive and livable in the years to come.

The introduction of (appropriate) parking fees is a necessary first step, but it’s only a small part of what needs to be a much larger reform. Goa must reimagine its approach to regional planning, ensuring that the value of its spaces is fully recognized and that the revenue generated is reinvested in public transportation and pedestrian infrastructure. This will require not just technical adjustments, but a shift in mindset—a move away from car-centric policies towards a more holistic vision of regional development that prioritizes people over vehicles.

The High Price of Inaction

Goa stands at an important juncture. The current underpricing of parking and the political resistance to necessary transportation reforms are significant barriers to the region's progress. While the concerns of taxi operators and other stakeholders are important, they cannot be allowed to obstruct the broader goal of sustainable development. The social and economic costs of maintaining the status quo are simply too high.

To ensure a brighter future, Goa must adopt a more stronger and progressive approach to regional transportation planning. By appropriately pricing parking, investing in public transportation, and shifting towards a more pedestrian-friendly environment, the region can build a more sustainable, equitable, and economically vibrant future. The hidden costs of inaction are enormous, and the benefits of reform are too significant to overlook.

(The author is a strategy consultant and writer

living in Goa)

SCROLL FOR NEXT