Hotels, govt fight over room rates

Barely hundred days away from the Commonwealth Games (CWG), Delhi hoteliers and the tourism ministry are at loggerheads over room rates.

The tourism ministry had asked hoteliers in Delhi to bring down rates by 15 to 50 per cent, depending upon hotel categories. While many hotels agreed to slash rates, several are not in favour of reducing it during the Games.

“Some hotels have yet to come on board with the discounted tariffs. Many of these are in Lutyen’s Delhi. We will be holding a meeting with them very soon and try to convince them on lowering the room rates,” a senior official in tourism ministry said.

The tourism ministry expects over 100,000 tourists to visit Delhi during the CWG. The tourists coming to Delhi for the Games would be exempted from ‘luxury tax’, if they book through the Games Travel Office, run by travel company Le Passage to India.

Asian Hotels - West, which has its brand Clarion Collection, earlier known as the Qutub Hotel in Delhi, does not intend to reduce its rates for the CWG. Sushil Gupta, chairman and managing director, Asian Hotels – West, said, “There is no compelling reason for us to reduce our rates for the Games. After all, what subsidy has been given to us by the government.”

He also said that Delhi was not going to attract as many tourists as the tourism ministry was expecting. “I was here at the time of the Asian Games. There was hardly any demand. It will be the same this time. I don’t know why we are worried about shortage. There won’t be much demand,” Gupta said.

Bird Group-owned Dusit Bird hotels, coming up in Delhi before the Games, also does not plan to bring down its rate. “We are not subsidising hotel rates to suit the Commonwealth Games. We have a very small inventory anyway which is very high end,” said Ankur Bhatia, executive director, Bird Group.

Meanwhile, the Federation of Hotels and Restaurants Association of India, said that it would extend full support to the government, but their demands should also be met. “We have been demanding that luxury tax should be levied on actuals and not the rack rate and the exemption should be for all the travellers coming during Games and not just those who book through Games Travel Office,” said Rajendra Kumar, president of the Association.