Shimla: Operating a hotel business in Himachal Pradesh is set to become more expensive following the revision of fees for Consent to Establish (CTE) and Consent to Operate (CTO) by the State Pollution Control Board. The revised fee structure has significantly increased the financial burden on hotel operators, with small establishments facing a hike of up to 150 per cent.
Under the revised rates, small hotels in the Green category with 10 to 13 rooms and a project cost of up to ₹1.50 crore will now have to pay ₹1.80 lakh for a five-year CTO period, compared with the earlier fee of ₹72,000. This represents an additional burden of ₹1.08 lakh over five years.
The annual fee for these establishments has increased from ₹14,400 to ₹36,000, raising concerns among small and medium-sized hotel operators who are already managing rising operational expenses.
The impact is also expected to be substantial for hotels falling under the Orange category, particularly establishments with more than 20 rooms. Depending on the project cost, the estimated five-year fees could range between ₹3 lakh and ₹5 lakh. The fee calculation is linked to the category of the establishment and its project cost.
The revised structure applies to both new and existing establishments, adding to concerns across the state’s tourism sector. Hotel operators are apprehensive about meeting the increased compliance costs, particularly as the tourism industry includes numerous small businesses operating with limited financial resources.
The situation has become more concerning for operators who have not paid the revised fees, with the Pollution Control Board reportedly issuing closure notices to some establishments for non-payment. This has heightened anxiety among tourism entrepreneurs, who fear that the higher charges could put additional pressure on the viability of smaller hotels.
Himachal Hotels and Restaurant Associations has urged the state government to reconsider the revised fee structure. Association argued that small tourism establishments should not be treated on the same footing as large industrial manufacturing units, given the differences in their scale of operations and financial capacity.
The hotel industry has called for a more balanced approach that takes into account the size of establishments, their project costs and their contribution to the state’s tourism economy.
