Tourism dept plans JV with Casino to develop infrastructure

The Karnataka tourism department is forming a joint venture company with the Kerala-based Casino Group of Hotels to develop tourism infrastructure in the state.

The department has worked out a detailed roadmap to execute projects in the state under the public-private partnership initiative, a senior official in the tourism department said.

The JV company proposes to set up five star hotels at high potential tourist centres in the state. To begin with 5-star hotels will be set up at Gokarna in Uttara Kannada district and Hampi in Bellary district.

As part of the project, the state government will provide land for building the hotel, while the Casino Group will pump in the required funds, L Shanthakumari, principal secretary, tourism department said.

The first 5-star resort is being set up at Gokarna near Karwar on the west coast. Gokarna, which has the 'Atmalinga' of Lord Shiva, is a prominent place of worship. The Casino Group is already setting up a resort near Karwar.

The state tourism department has also identified a 25-acre land at Hampi to set up a 5-star hotel. The property will be located near the existing hotel "" Mayura Bhuvaneshwari "" a 40-room hotel owned by the Karnataka State Tourism Development Corporation (KSTDC) for the middle class tourists, Shanthakumari told Business Standard.

She said that the department of tourism has also provided a 5-acre plot with an existing building to the Taj Group for developing a five-star hotel at Chikmagalur.

"The department is taking it up as a mission as part of the efforts to develop tourism infrastructure in the state. A high level committee has been formed under the chairmanship of the Karnataka chief minister to oversee the projects," she said.

Already, the government has privatised 18 hotel properties owned by the KSTDC. Prominent among them are Hotel Metropole at Mysore, which is now managed by the Orchid Group and another hotel at K R Sagar has been given to Jungle Lodges. This hotel will be completely renovated and managed by them.

During the fiscal 2006-07, the tourism department's annual budget is likely to be raised to Rs 40 crore with another Rs 16 crore grant from the

Centre to develop tourism infrastructure in the state, she added.