Himachal High Court allows Tourism Corporation Hotels to stay open, Offers partial relief

In a significant development, the Himachal Pradesh High Court has granted permission for nine of the 18 state-run hotels under the Himachal Pradesh Tourism Development Corporation (HPTDC) to remain operational until March 31, 2025. This decision, seen as a partial reprieve for the state government led by Chief Minister Sukhvinder Singh Sukhu, provides temporary relief for the struggling tourism sector.

The Single Bench, headed by Justice Ajay Mohan Goel, issued the order after the government highlighted the potential disruption caused by the sudden closure of these establishments, especially given the advance bookings for weddings and other events.

The hotels allowed to continue operations include prominent properties such as Hotel Chail Palace, Chandrabhaga Keylong, Hotel Meghdoot, Log Huts Manali, Hotel Kunjum, Hotel Bhagsu, and others located in Khajjiar, Kasal Nagar, and Dharamshala.

The initial directive to shut down these hotels by November 25 had sparked significant criticism from the state’s tourism industry, which argued that abrupt closures would harm both operations and the reputation of Himachal Pradesh as a tourist destination. While the court considered these concerns and allowed nine hotels to operate temporarily, it maintained the closure order for the remaining eight establishments.

The state government has expressed its intention to appeal this decision, seeking to prevent the shutdown of the remaining hotels. This legal battle underscores the challenges of managing state-run enterprises, particularly in a tourism-dependent region like Himachal Pradesh, where the sector plays a pivotal role in the economy.

While the court’s ruling offers short-term relief, the broader challenge of ensuring sustainability for loss-making public sector units remains a critical issue for the state government. The outcome of this case is likely to have long-term implications for the region’s tourism-driven economy.