Shimlq, Nov 19,
In a recent order, the Himachal Pradesh High Court has directed the immediate closure of 18 loss-making hotels operated by the Himachal Pradesh Tourism Development Corporation (HPTDC). The decision, issued by Justice Ajay Mohan Goel, came in response to a civil writ petition filed by HPTDC employees.
The court found that these hotels, including prominent properties like The Palace Hotel in Chail, Hotel Bhagsu in McLeodganj, and Hotel Dhauladhar in Dharamshala, had consistently low occupancy rates, resulting in significant financial losses. The court described these properties as “white elephants,” criticizing HPTDC for its failure to improve their performance despite numerous opportunities.
Justice Goel ordered that only essential staff be retained for maintenance and cleaning purposes at the closed hotels. The remaining staff is to be redeployed to areas with staffing shortages. The closure will take effect on November 25, 2024.
The court’s decision followed a detailed analysis of the hotels’ occupancy rates from January 2022 to October 2024. The data revealed that many properties had occupancy rates below 30%, highlighting HPTDC’s inability to attract visitors and generate revenue.
This ruling marks the second significant setback for the state government and HPTDC this week, following the attachment of Himachal Bhawan in Delhi due to unpaid power bills. The court has granted the power company the authority to recover its dues through auction.
The closure of these 18 hotels, located in prime tourist destinations like Keylong, Khajiar, and Manali, is expected to have a significant impact on HPTDC’s operations and finances. The corporation is now under pressure to reassess its strategies for managing its remaining properties and addressing its financial challenges.
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