With no corrective measures being initiated, Mountview, a flagship hotel of Chandigarh Industrial and Tourism Development Corporation (CITCO), continues to pile up losses.
According to the sale figures, the hotel - one of the premier hotels in the city - posted an income of Rs 17.9 crore from April 2012 to December 2012, which was Rs 19.79 crore during the same period in the preceding year.
There are a total of 158 rooms in the hotel and the occupancy rate of the rooms was 38.22% last year, which fetched the management around Rs 9 crore as room rent. However, the room occupancy dropped to 35.5% this year and around Rs 7 crore was collected as room rent. The figures will further decline as 30 rooms will be unavailable due to renovation, which is scheduled to start shortly.
The figures of bar sale have also shown a downfall. The net bar sale during the same period in the current year is Rs 1.1 crore, while the bar sale had registered figures of more than Rs 1.5 crore last year.
Due to increase in food charges, the net food sale has witnessed a rise. The gross food sale was recorded at Rs 8.4 crore last year, while the figures recorded this year are around Rs 8.7 crore.
Like Mountview, the earnings of Hotel Shivalikview are also on decline. During the same period, Shivalikview has witnessed a fall of more than 25% in the revenue.
No corrective measures
The authorities concerned have allegedly not taken any measures to put a check on the fall of revenue generation in its flagship hotels.
With no financial assistance from the UT administration, CITCO has to generate funds to meet all its expenditures, including salary of the staff members.
A senior official maintained that the administration provides only infrastructural support to CITCO and they have to meet all the expenditure on their own.
"Under such circumstances, it is important for CITCO to do financially good. If the current trend continues, CITCO will be in financial trouble in times to come," rued the official.
DK Tewari, CITCO director, refused to comment when asked about the reasons for fall in revenue and steps taken to overcome the losses.
Misuse of no charge KOT
The CITCO Progressive Workers' Union has taken up the issue of the alleged misuse of no charge kitchen order ticket (KOT). In general, all the orders are first placed on KOT and based on the document, the final bill is raised. No charge KOT are meant only for promotion activities.
In a complaint submitted to CITCO MD last year, the union had alleged that certain officers had been using no charge KOT for obliging their friends and relatives, thus causing losses to the organisation. In the complaint, the union had highlighted instances in which the provision of no charge KOT was misused.
To ensure that no charge KOT is not misused, the union had made certain suggestions, including each KOT should be verified by officials on whose behalf food has been served and security of the hotel should not let any items go out of the hotel without bill/KOT.
'Unqualified' staff at top positions
In the recent past, questions have been raised on deploying staff members at top positions, who allegedly do not posses required qualifications for those positions. The issue has been taken with the authorities, but in vain. "There are people who are holding important positions without required qualifications. How can you expect such people to perform?" questioned an official. As per the laid down norms, 80% of the supervisory staff of a five star hotel need to be professionally qualified, which is not the case with Mountview.