The paper traces the origin and development of tourism and hotel industry in the state of Goa along with significance and evil effects. The article studies the growth of domestic and foreign tourist arrivals in Goa during the period 2000 to 2015. It is observed that the arrival of domestic tourist and foreign tourist in Goa is showing an increasing trend. Similarly the hotels, rooms and beds are also showing a healthy growth. The tourist arrivals in Goa show annual compound growth rate of 6.78%, where as the hotels show a compound growth rate of 4.07%.