Hotels concerned over fall in occupancy

Hotel industry which is incurring huge losses due to drop in occupancy ratio and unprecedented power charges is wooing customers with special offers. The occupancy ratio of rooms is hovering between 30 and 45 per cent in many hotels as against 70 per cent in year 2010-11. A few three-star hotels announced 20 per cent flat discount on room tariff and complementary breakfast and other offers. These offers helped to improve business slightly in the last few months but that is not sufficient to offset losses.

As many as 10 three-star hotels have been established in Srikakulam and Vizianagaram districts in the last three years as many entrepreneurs anticipated roaring business with the booming industrial and commercial activity. With the relentless agitations against the industries and slowdown in the business activities, the hotels lost their sheen. The government has earlier announced incentives for the newly-established hotels under tourism development packages. But none of the hotel could get the benefits despite submission of many representations to both the Union and the State governments.

Full report here Hindu


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