4-5 per cent occupancy in Kashmir hotels as tourism declines

Srinagar, Sep 27 (UNI) The occupancy rate in hotels and guest houses in Kashmir has fallen to 4-5 per cent which is a matter of serious concern, the Kashmir Hotel and Restaurant Association has said.

It also said that hotels and guest houses at all tourist resorts in the Valley have remained occupied for just 37 days in the season.

The association President Habibullah Mir said the hotel industry has suffered a lot in the past 16 years as most of the hotels and guest houses have remained closed during the period.

In order to make their hotels and guest houses functional in 2003, the owners had to make huge investments by borrowing money from banks and other financial institutions, he added.

In 2003, Mr Mir said, the government provided Rs 50,000 for each room up to 50 per cent of the total number of rooms for renovation under the Prime Minister's package as soft loan for generation of employment through revival of tourism.

''The soft loan was highly insufficient to make the entire unit properly functional,'' he added.

Mr Mir said the hoteliers were expecting a huge rush of tourists this year. ''In fact, the tourist arrivals in April and May remained satisfactory, but unfortunately from mid-June there has been a sharp decline everyday and as of now only 4-5 per cent occupancy is recorded,'' he added.

This ''alarming'' situation has once again become a matter of concern for all tourist players in general and the hotel industry of the Valley in particular, Mr Mir said.

The association urged the state government to initiate massive promotional activities with proper planning to attract tourists from across the country during Durga Puja holidays and Diwali vacations.

It further appealed to the government to save the hotel and guest house owners from becoming defaulters to financial institutions.

''The government should immediately make payments to different financial institutions on behalf of hotels and guest house owners on account of amount borrowed under the Prime Minister's package.'' UNI AG PKS ND1456