SHORTAGE OF HOTEL ROOMS MAY HALT TOURISM GROWTH IN MP 22 January, 2016
SHORTAGE OF HOTEL ROOMS MAY HALT TOURISM GROWTH IN MP
The current years saw tourism in MP emerging as one of the major sectors for growth of the Economy. International Tourist Arrivals grew over, the foreign exchange earnings through tourism in terms of rupees registered an impressive growth, MP was declared amongst top tourism destinations among other states by the leading tourism personalities. The increased arrival trends continue growth over the corresponding period of last years.
However, the paucity of tourism infrastructure especially hotels have been holding back arrivals of foreign tourist specially leisure groups. MP needs atleast 15000 rooms by 2020 to meet the growing demand for hotel rooms. In MP average room rates have soared by 15% making us one of the most expensive destination.
Crunch of rooms in almost all tourist destinations are visible and turning down the requests for more hotel rooms in from charter operators have been informed by many tour operators. We have turned down the requests from overseas charter operators' inspite of the fact that hotel prices have gone up. In many tourist places the prices went up without corresponding increase in service and product levels. This has raised a question of sustainability of business. Infact in high season the shortage of rooms may go around 5000 / 6000 in rough calculations looking into the demand for rooms in most of the places. 'Incredible India' brand has created right impact in many new markets and with present level of growth trend there will be Demand/Supply problem. The hotel room position is not that convincing to meet the demand which Incredible India campaign has generated as also the improved air connectivity to India. Now few question arises whether industry can support rooms by 2020 that is to meet the growth; whether our airports can take this tourist load etc. India has to reach 10 million tourist figures by 2020 and that being the objective., there should be sincere efforts what is most essential now is to have land bank for giving on long lease and at a reasonable price so that private sector can be motivated to construct new hotels.