'ITDC incurred losses of around Rs 20 cr in 3 yrs in running 7 hotels'

The Centre today informed Parliament that ITDC had incurred losses of around Rs 20 crore in the last three years, till December 2017, in running its seven hotels.

In a written reply in the Lok Sabha, Minister of State for Tourism K J Alphons said currently, the India Tourism Development Corporation (ITDC) Limited was running nine hotels under the administrative control of the Ministry of Tourism -- The Ashok and Samrat hotels in New Delhi, Hotel Jammu Ashok, Hotel Patliputra Ashok in Patna, Hotel Kalinga Ashok in Bhubaneswar, Lalitha Mahal Palace in Mysuru, Hotel Ranchi Ashok, Hotel Donyi Polo Ashok in Itanagar and Hotel Puducherry Ashok.

The last three hotels were being run as a joint venture of the ITDC and the respective state and Union territory governments, the minister said.

In 2014-2015, the losses of the ITDC in running these hotels amounted to Rs 8.86 crore, in 2015-2016, the amount was Rs 5.20 crore, in 2016-2017, it was Rs 4.99 crore and from March to December, 2017, the amount was around Rs 95 lakh, taking the total loss to Rs 20 crore in the three years.

"The main reasons for the losses incurred have been competition from new and modern hotels, increase in the available room inventory, increasing wage cost, hike in power and fuel cost," the minister said.

Alphons added that ITDC had taken measures to modernise its hotels, including upgradation of the rooms, addition of new facilities, tie-ups with online travel agencies and on-the-spot customer feedback facilities.

He said under the disinvestment policy of the government, it was decided to transfer the loss-making properties to the state governments or go in for a joint leasing of these assets with the state governments.