Himachal High Court orders shutdown of 18 loss-making tourism units
In a significant move aimed at preventing financial drain, the Himachal Pradesh High Court has directed the closure of 18 loss-making hospitality units operated by the Himachal Pradesh Tourism Development Corporation (HPTDC) by November 25, 2024. The court termed these establishments as “white elephants” that have been mismanaged for years, contributing to the wastage of public funds.
The judgment, delivered by Justice Ajay Mohan Goel, comes in response to a writ petition filed by HPTDC employees. Justice Goel criticized the corporation’s inability to revive these assets despite repeated court interventions and guidelines. The court highlighted that these units, with alarmingly low occupancy rates, were a clear example of inefficiency and poor resource management.
Shockingly Low Occupancy Rates Exposed
The court’s observations underscored the dire state of these units, which include iconic properties like the Palace Hotel in Chail, Hotel Dhauladhar in Dharamshala, and Hotel Log Huts in Manali. In 2024, for example, Hotel Geetanjali in Dalhousie recorded a mere 21.67% occupancy, while the Palace Hotel in Chail barely managed 26.62%. Such numbers have made it untenable for these establishments to continue operations.
Strict Compliance Ordered
The High Court has held the Managing Director of HPTDC personally responsible for ensuring the closure of these units. The court directed that only essential staff for basic upkeep be retained, while the rest are to be reassigned to fill manpower shortages in other profitable units.
A Broader Concern Over Fiscal Mismanagement
In a separate case, the court attached Himachal Bhawan in Delhi to facilitate the recovery of dues by a power company through auction—further underscoring the state’s financial challenges. Justice Goel stressed that public funds must not be wasted on inefficient ventures, urging immediate reforms in the management of government-run enterprises.
The verdict highlights the operational failures of HPTDC and raises pressing questions for the state government and tourism authorities, who now face the daunting task of addressing the fallout from the court’s strict directives.
Who is running the Himachal Government? HP High Court unnecessary poking it’s nose?
जो स्कूल बंद किए ओ सही किया है कांग्रेस ने, जिधर आम लोगों के टैक्स के पैसे की बर्बादी हो रही हो ओ स्थान बंद होने ही चाहिए।
I and my son visited India booked through an Indian Tour Organiser for 35 days.
We visited the following places Delhi , Shimla , Kashmir , Chandigarh , we visited so many places and stayed in some twenty five homestay and hotels.
Some of those homestay were not that perfect and when talked to person concerned they pay a deaf ear to my proposal to improve the standard of their homestay.
I have been working in the hotel industry for 35 years in Mauritius , and I know what should be done to improve the service in a hotel to attract more tourist.
I was a student of PANJAB UNIVERSITY in the year 1978 to 1981 and in the month of March 2024 I visited India with my son because he was so keen to see India.
There is a lot of things can be done to improve foreigners visit to India.
Hope my comment will be taken positively and contact me for any help.
Thank you and my kind regards to you all.
Teerath RAMSURN
All the above mentioned places have high influx of tourists throughout the year. I am from Solan and therefore can tell you about the Chail Palace. It is highly overpriced,last time I inquired about the king’s room 10 years ago, it was costing around 22k to 25k INR per night. In return you dont get anything special except to give yourself a feeling that you stayed in the Maharaja Patiala Place, as compared to this you get far better facilities in Chail in around 4k per night. Also the most attractive thing in the Palace is the lawn area, so if the Tourist department advertises it aggressively and provides the required facilities it could be the perfect venue for destination wedding also the property is so old but they still don’t have a swimming pool which is indispensable if you are charging this much. So many tourists just come to see the palace after buying an entrance ticket(no stay) but there is no cafeteria where normal tourists can afford to eat or drink in the palace. Completely mismanaged.
Sad! Courts are expected to deliver justice as per law. Court interference in tourism is just nonsense! Decsion makers should be sacked.