IPL’s flight leaves Indian hotels stranded
The shifting of the IPL cricket’s second season from India to South Africa on security concerns will mean a Rs 50 crore loss to the country’s hospitality and travel industry, reports Lalatendu Mishra.cricket Updated: Mar 26, 2009 02:17 IST
The shifting of the Indian Premier League (IPL) cricket’s second season from India to South Africa on security concerns will mean a Rs 50 crore loss to the country’s hospitality and travel industry, already suffering from the impact of a worldwide economic slowdown, say industry experts.
IPL boss Lalit Modi said 30,000 hotel rooms might will go vacant across Indian cities as a result of the shift and based on this fallout, hotels will forego revenues of Rs. 15 crore at Rs 5,000 per room during the 42 days of the IPL calendar, though it is not clear what kind of rooms need to be considered for such estimates.
“This is an incremental loss to the industry. It is an opportunity lost,” said Shreenath Shastry national director (hospitality and leisure), at property consulting firm Knight Frank India.
The loss is not just in hotels, but also in related activities like food, beverages and entertainment events. “Food and beverage services would have been enhanced at not only the restaurants but also banqueting. Additionally, services like travel companies that provide cars and coaches, and other suppliers could have benefited,” Devendra Bharma, executive vice-president, Oberoi group.
“It is a loss to the country at a time of slowdown. But we can’t compromise on security. The loss is nothing as compared to cancellation of a sporting event like Commonwealth Games or Olympics,” said Ankur Bhatia, executive director, Bird Group, a travel consultancy group.
“The loss is anybody’s guess but it is substantial. Apart from hotels, airlines have also suffered. All the sponsors and the franchisees could have spent a lot,” said Partho Chatterjee, director, Berggruen Hotels.