Heritage hotels in Gujarat seek breathing space

In spite of having over 300 potential heritage hotel properties, the state of Gujarat has roughly 15 such hotels. The heritage hotel industry, too, is facing stagnancy as no new properties are coming up.

“We have been telling the government to preserve the heritage properties. To give typical feeling of heritage hotel we need interest free loans but nothing has been done so far. Currently loans are not viable for most of the owners,” says Harendrapal Singh, secretary of Heritage Hotels Association of Gujarat (HHAG).

While the annual expenses could be around Rs 8-9 lakhs on variables like electricity, wages and other running expenses, the annual turnover is also around Rs 10-15 lakhs for an average heritage hotel in Gujarat. Owners feel better loans and better marketing could help the industry garner more tourists which is mostly attracted to the neighbouring state of Rajasthan.

 

“It is frustrating at times because the growth is slow in heritage hotels industry in Gujarat. Moreover, while Kerala and Rajasthan’s government have helped the industry a lot in marketing, in Gujarat the industry receives kind of a step motherly treatment,” adds Singh.

According to HHAG, there are about 32 members in the association and 15 heritage hotels in Gujarat with about 180 rooms.

Industry experts say that the season for these heritage hotels begin from October 15 till March 15. However, while recession time saw some footfalls in these hotels, the same has almost dried up this year. For instance, Rajmahal Palace Wadhwan in Surendranagar, is having a tough time generating its running costs.

“Footfalls were there during the recession time. But this year business has been stagnant. And maintenance and other running expenses become difficult to bear especially when the footfalls are less,” says Siddharth Sinh of Rajmahal Palace Wadhwan.

Moreover, while properties in places like Jambughoda and Poshina grew from 6 and 5 rooms in 1994 and 1995 to 20 and 30 in 2010, respectively, expansion of properties has almost come to a standstill.

“The need for support from government in terms of incentives is at the highest among these heritage hotel owners. This has also kept new hotels from joining the bandwagon as well,” says an industry expert.