Gujarat goes PPP way to revive its tourist amenities

The state government here is taking seriously the rap from the Comptroller and Auditor General of India (CAG) on the working of hotels and wayside amenities run by Tourism Corporation of Gujarat Ltd (TCGL).

TCGL is now looking for private partners to operate and manage 14 of its wayside amenities along the highways, tendering for which has been done.

If this model works well, TCGL, a company incorporated in June 1975 for development of the state's tourism sector, will consider leasing out some of its Toran brand of hotels, operating in losses.

A wayside amenity is typically a facility with a restaurant and a couple of rooms to cater to tourists' requirement for food and rest while travelling on the highway. "The idea is to develop well-maintained toilet blocks, parking lots and refreshments at these joints," said a senior official of the government move. "We have 14 such properties; when the number goes up, it would be difficult for TCGL to manage and staff these.''  

He said the process of awarding the tenders was likely to be over in about a month. The rate for services offered would be decided by the private operator, with TCGL getting a fixed annual sum. "This is something similar to leasing out. The initial contract would be for five years and, post a review, it could be extended for another five years," the official said.  

As for the Toran hotels, the CAG report noted the number between 2009 and 2014 went down from 14 to 11 and so did occupancy, from 42.8 per cent in 2009-10 to 35 per cent in 2013-14.

"Though these hotels are situated at famous tourist places having a rich heritage, culture, wild life, hill stations and of religious importance, etc, the average occupancy was always lower than the all-India average. This indicates that even hotels located at famous tourist places could not capture the inflow," the CAG report stated.

It had said there was no rational basis for fixation of room rates based on factors like actual occupancy, availability of infrastructure, rates of private hotels in the vicinity and so forth.  

An official in the tourism department agreed the Toran hotels had lost lustre, primarily due to lack of refurbishment to these properties.

"If the public-private-partnership model we have adopted for the wayside amenities works out well, we can then think of extending this to some of our Toran hotels," he said.