In a revealing session of the Himachal Pradesh Vidhan Sabha today, the financial difficulties of the Himachal Pradesh Tourism Development Corporation (HPTDC), a government-owned entity, were brought to light. BJP’s Sukh Ram Chaudhary raised a question that uncovered the stark reality facing the corporation: 35 out of the 55 hotels managed by HPTDC are currently operating at a loss, with only 20 hotels managing to turn a profit.
The Chief Minister responded to the query by confirming that nearly 65% of HPTDC’s hotels are struggling financially, highlighting significant concerns about the management and strategic direction of the corporation. This disclosure has sparked a broader discussion about the challenges HPTDC faces in the highly competitive hospitality industry.
Several of the loss-making hotels are key properties located at prominent pilgrimage sites, including Chintapurni and Jwalaji. Despite their strategic locations, these hotels have failed to attract sufficient tourists, raising questions about the efficiency of HPTDC’s management and its marketing strategies.
Multiple factors contribute to the financial struggles of these government-run hotels. Inadequate maintenance and subpar services have driven tourists away, with many opting for private accommodations that offer better amenities and overall experiences. Even in popular tourist destinations like Kullu-Manali, Dalhousie, and Chamba, HPTDC hotels are struggling to maintain profitability due to poor upkeep.
Moreover, the corporation’s inability to effectively promote lesser-known destinations such as Rohru and Khadapathar has resulted in underutilized resources and missed revenue opportunities. The pricing of HPTDC hotels, which often does not compete with private hotels offering superior services, has further deepened the financial woes.
However, there are exceptions within HPTDC’s portfolio that demonstrate the potential for success. Hotels like those at Gaurikund and Lake View Bilaspur have shown that with proper management, targeted marketing, and competitive pricing, profitability is achievable.