HPTDC running huge losses

The financial health of the Himachal Pradesh Tourism Corporation (HPTDC) is in a sorry state, with the latest data on it indicating that 28 of the state-run company's 52 properties are running losses.

The government is even planning to lease out some of these loss-making units to the private sector, according to state Tourism Minister G S Bali.

"In the last two years, the HPTDC has already sold off three loss-making cafes. The corporation has also leased out Hotel Nurpur for five years," said Bali. The HPTDC head office in Shimla is one of the loss-making units.

Others running losses include Hotel Renuka in Sirmaur, Hotel Shiwalik in Parwanoo, Mani Complex in Mandi, Sarvari Hotel in Kullu, Hotel Jwalaji in Jwalamukhi, Kashmir House in Dharamsala and Ravi View in Chamba.

Hotel Holiday Home, the HPTDC's flagship hotel in the state located in the state capital, has made a sizeable profit but the three hotels attached to this property in the outskirts of Shimla were running losses.

HPTDC was set up in 1971 and its properties are located at prime spots in popular resort towns of the hill state. It also own a few heritage properties.

Despite this, the company is finding it harder to sustain itself, with the private sector, which cater for domestic and foreign tourists, giving it tough competition.

There are some 1,500 large and small private hotels in Himachal, of which over a 1000 are in Shimla and Manali.