With Crippled Bus Services, Himachal Hotels On Cusp Of Collapse

In a fresh blow to Himachal Pradesh’s tourism industry, hoteliers reported occupancy as low as 20 percent owing to disrupted train services caused by blockade of the tracks by protesting farmers in Punjab, non-resumption of bus services to Delhi and, fear of coronavirus.

Until about a month ago, hotels which were fully operational have now reported a gradual drop in the tourist arrivals in Shimla, Manali, Dharamshala and other popular destinations. Barring luxury hotels and star hotels, the occupancy in hotels stands at 20 percent.

“We are just making-up with 15 to 20 percent of the tourists, few walk-in and of course the weekend check-in. Otherwise, the scene is completely dismal. One can easily assume that the hotel industry in Himachal Pradesh is heading for a collapse,” says Mohinder Seth, president Tourism Industry Stakeholders' Association.

 Last week, the state government decided to resume the inter-state buses to Delhi from 21 destinations including Shimla, Dharamshala, Palampur, Manali, Keylong and Reckong Peo (Kinnaur). This was almost after seven months that Himachal Road Transport Corporation (HRTC) had resumed its regular passenger service from the capital city.

Volvo and AC bus services, which are operated both by the private operators and the state government, still remain off the road.

“This is a dichotomy. One can fly to London or US but Himachal Pradesh doesn’t find conditions suitable to resume Volvo and AC bus services. The tourists will not travel in regular HRTC buses if they come to Shimla, Dharamshala and Manali. The disruption of trains due to farmers' stir in Punjab also has caused its adverse effect,” said Ashwani Bamba, president Hotels and Restaurants Association, Dharamshala.

Bamba doesn't feel that opening of the bus services or lifting restrictions on the inter-state borders has helped the revival of the tourism industry in its true sense.

“Unless the government sends a strong message that Himachal Pradesh has taken all precautions and there is no further chance of coronavirus spread, the tourists will not consider travelling as safe,” Bamba said.

Only 40 to 45 hotels in Manali had resumed business in October. The opening of Rohtang Tunnel and the snowfall in Lahaul valley was a momentary relief for the hoteliers.

Except on three occasions— the opening of Rohtang Tunnel, Dussehra and during the first snowfall in Lahaul valley—hotels in Manali maintained low occupancy.

The condition is not very different in Shimla and Dharamshala.

There is some hope of fresh arrivals during Diwali or post Diwali as Sanjay Sood, president Shimla hotels and Restaurants Association feel, but he is also concerned about people becoming careless and not following the guidelines like wearing face masks as they walk Mall road and Ridge which gets crowded at weekends.

Sood says, “It is difficult to sustain the business since the state government hasn’t really tried to help the sector in granting relief on electricity charges, water bills and other taxes and dues.”

“One peculiar factor about Manali is that most hotels are located in the panchayat areas. The villagers and Panchayat representatives are not willing to compromise on the arrival of the outsiders. Thus, many hotels are non-operational and those into the business have not cut more than 15 or 20 percent booking. This is completely uneconomical,” says Anup Thakur, president Manali Hoteliers Association.

The arrival of some film units for shooting at Manali and Dalhousie during the past 15 days has, however, made headlines for Himachal Pradesh offering its destinations to Bollywood stars, and Punjabi video songs being pictured in Shimla and Manali.