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In disarray after floods, Himachal hospitality sector asks for more heli taxis, entry tax exemption for tourists
As a potential remedy, the hospitality industry has proposed the expansion of heli taxi services between major towns in Punjab and popular tourist destinations in the state, including Shimla
After the extensive damage caused by torrential rains, flooding and landslides, dealing a severe blow to Himachal Pradesh’s tourism sector, the tourist influx has plummeted to an unprecedented low. The hospitality sector has sought the government’s support for essential resuscitation measures. The road network, a critical artery for the state’s economic activity, has suffered extensive damage.
As a potential remedy, the hospitality industry has proposed the expansion of heli taxi services between major towns in Punjab and popular tourist destinations in the state, including Shimla. HP Tourism Stakeholders Association president Mohinder Seth fervently advocates for the augmentation of heli taxi frequency, spanning crucial cities such as Ludhiana and Jalandhar, to ensure seamless connectivity.
Furthermore, the sector is also seeking waiving of entry tax for tourists, especially those arriving in sizable groups from Gujarat, in the upcoming season. This gesture, they believe, will invigorate the flow of tourists, simultaneously boosting government revenue through increased GST and other tax collection. Prince Kukreja, a hotelier, says that this strategy not be a win-win and lure tour operators into promoting the state as a premier destination. In addition, he advocates for substantial subsidies on airfares for a two-year period to mitigate the impact of the ongoing highway restoration.
The adverse weather conditions have cast a long shadow over the tourism industry, which was gradually recovering from the shock of the Covid-19 pandemic, leading to a drastic decline in tourists. Iconic tourist spots, like Shimla, Manali, Chail and Dalhousie, have witnessed a significant drop in hotel occupancy, even during weekends, as the Kalka-Shimla national highway remains inaccessible. The suspension of rail services between Kalka and Shimla and landslides on the Chandigarh-Manali national highway have compounded the transportation woes.
To provide a lifeline to the tourism stakeholders, a unified appeal has been made for a six-month deferment of water and electricity bill payments sans surcharges. Along with this, eateries bat for waiving garbage disposal fees, suspending fixed demand charges for electricity, postponing loan repayments until May 2024 and facilitating accessible emergency working capital loans for industry players form part of the comprehensive package aimed at cushioning the sector’s financial blows.
The only glimmer of hope is the weather forecast for the near future, that indicates an absence of heavy rainfall. Amit Kashyap, director of Tourism Department, anticipates that the eventual re-opening of the national highway will be a turning point, leading to a surge in tourists’ footfall.
The tourism industry has called for interventions to rejuvenate the sector that is a major economic contributor, and a repository of cultural heritage and natural beauty.
