KSTDC to expand hotel business

The Karnataka government had set aside Rs 180 crore for the state tourism department to add new rooms, to upgrade existing hotels, improve roads, to renovate important tourist destinations and to set up helipads in various destinations. The department is also planning for a casino in ship near Mangalore port.

Speaking to Business Standard during his recent visit to Chennai, Vinay Luthra, managing director, Karnataka State Tourism Development Corporation (KSTDC) said that the state government has allocated Rs 180 crore for KSTDC.

The money will be used to add new rooms which would cost around Rs 50 crore, Rs 10 crore to upgrade the existing hotels. Currently KSTDC owns 16 hotels and runs 20 hotels through franchises with a room inventory of 150. The department is now planning to add rooms at 26 rooms at Coorg and 10 rooms in Srirangapatinam. In Ooty the department is constructing a hotel with an investment of Rs 5 crore.

KSTDC is also planning to privatise 23 roadside facilities on a Repair, Own and Manage (ROM) basis, said Luthra.

Connectivity is the key, he said, to upgrade the roads which connects important tourist destinations the government has allocated Rs 30 crore.

Another Rs 30 crore was allocated to renovate Bidar, an important Sikh temple in North Karnataka and Rs 20 crore marketing purpose.

Since Hampi is an important tourist destination the government has given a grant of Rs 32 crore to create various infrastructure projects and to buy battery operated vehicles.

The department is also planning to set up 23 helipads with an investment of Rs 10-15 lakh each in various destinations to promote heli tourism in the state. This would mainly to attract foreign tourist.

K Viswanatha Reddy, director, department of tourism said that four circuits have been identified. Circuit 1 includes heritage sites Hampi, Badami, Pattadakal, Aihole, Bijapur.

He added a global tender has been opened and eight companies have shown interest which includes Deccan Aviation and HAL.

The department is also planning to promote cruise tourism and it is going one step ahead by bringing a ship which will have casinos and other entertainments on board. The department is looking for a foreign partner to carry out this project.

The Mangalore port has been identified to facilitate the proposed tourism. The proposed entertainment ship will be anchored in the sea and will be connected by a shuttle service, said Reddy.