The hotels run by the Chandigarh Industrial and Tourism Development Corporation (CITCO) in the city are losing business to private players in the periphery.
The occupancy rate at CITCO hotels between April and July has been 30%. The corporation has also seen a major slide in the income from its banquet halls, which lesser people are booking them, mainly owing to the strict rules of the administration regarding closing timings.
The occupancy rate of the two main hotels of CITCO — Mountview and Shivalikview — was about 30% in April and May. The occupancy rate went up to around 60% at the Shivalikview after May, but there was no change in the occupancy rate at the Mountview. Sources in CITCO say slide in room occupancy was due to mushrooming up of hi-end private hotels in and around Chandigarh.
The main worry for CITCO, however, is the dip in banquet bookings, which officials claim was because the administration doesn’t allow playing of music and other activities after midnight. Hotels on the outskirts don’t bother the customers much on this count. CITCO had also hired an agency to rejig the room tariff and put it online on different portals.
Hotel Mountview in Sector 10 has 154 rooms and the income from room rent between April and July this year was Rs 2.11 crore. The banquet sales came down from Rs 1.84 crore in 2015 to Rs 84 lakh for the first half this year.
At Hotel Shivalikview in Sector 17 having 108 rooms, the income from room rent between April to July was Rs 2.42 crore. The banquet hall booking sale has come down from Rs 1.72 crore in 2015 to Rs 98 lakh this year.
CITCO’s Hotel Parkview in Sector 24, however, has been doing good business in terms room occupancy at 70%. The hotel has earned Rs 3.18 crore in room rent this year, but the banquet hall bookings is dismal here too. The banquet sales dipped from Rs 1.23 crore last year to Rs 53 lakh this year.
Chandigarh home secretary Anurag Agarwal said, “There was dip in the occupancy rate but different steps are being taken to improve the situation. Different initiatives have been planned like food festivals and other events to attract the customers.”