Hoteliers demand financial package for ailing hospitality sector

Urging the state government to hand-hold hospitality sector, the chairman of Jammu and Kashmir Hoteliers Club (JKHC) Mushtaq Chaya on Friday said that government must come out with a financial bail-out package to safeguard hospitality sector which is facing onslaught due to meagre 10 percent occupancy due to negative publicity.

Chaya, who was re-elected as chairman of JKHC for sixth year in a row during its 6th annual general meeting on Friday, said there is only 9 to 10 percent occupancy in hotels across Kashmir.

   

“For any hotel to break-even its expenditure, it must have 50 percent occupancy, but situation of this sector is grim,” he said adding that during last three years tourist influx has witnessed drastic dip.  

“Negative hype regarding Kashmir tourism has put on cross-roads. There is a huge investment in this sector. But media is propagating in such a way that tourists enquire and ask when will situation improve,” he said adding that however situation is totally different from what is being portrayed by media.

Chaya also brought in notice lingering issue of extension of land lease at Gulmarg. “Hoteliers have made a huge investment in Gulmarg. But there is no proprietary land, it is also leased land. We are demanding that government must extend lease period of hotelier to 99 years which is as per the law,” he said.

He said that despite government announcing power tariff as per industrial sector during last year budget, but it has not been implemented.  Chaya stressed on the government to promote winter tourism so that hoteliers will get some respite.

Besides chairman, during annual general meeting other members of the executive committee were elected.  Riyaz Ahmad Shahdad was elected as Senior Vice Chairman, Amit Amla as Joint Vice Chairman, Tariq Rashid Ghani as Secretary General, Lateef Bhat as Joint Secretary General and Naseer Ahmad Khan as Treasurer.

Co-chairman of PHD Chamber of Industries and Commerce, Zahoor Ahmad Trumboo while speaking on the occasion pinpointed loopholes in the tourism promotion campaigns being organized by the government.

“We have witnessed in the past, that holding FAM tours, road shows have not yielded result. I believe trying same thing again and again and hoping it will give different is insanity. These tools of promotion used by government have failed. Need of the hour is to rope in best professionals who could promote Kashmir in a best way and achieve desired results. Local associates are always there who work for the promotion of the tourism,”Trumboo said.

 He said that with minuscule budgets for promotion will not help tourism promotion, there has to be a budget with sufficient finances for tourism,” he said.

Similarly common STP was announced for tourism areas but nothing has been done uptill now. It must be done on priority.

Authorities have withheld permissions at Sonamarg building approved by BOCA in 2009, but no permission letters issued to them.

President, KCCI, Sheikh Ashiq said business sentiments are poor. “Hoteliers have made huge investment, but business is not coming. Promotion and branding are most needed, we have infrastructure but we need tourists to visit,” he said.

President, Federation of Chamber of Commerce and Industries, Muhammad Ashraf Mir said that lack of tourism policy is hurting the tourism sector badly.

Co-chairman, PHDCCI, Baldev Singh also spoke on the occasion.

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