Karnataka to privatise loss-making hotels

To use Mahamasthakabhisheka to promote tourism worldwide

The Karnataka government proposes to privatise select loss-making hotels operated by Karnataka State Tourism Development Corporation (KSTDC) in a phased manner. The corporation has already privatised more than 10 hotels in the state which are running well presently.

According to L Shanthakumari, prinicipal secretary, information, tourism and youth services department, the corporation owns nearly 50 hotels in various tourist locations in the state, of which only 10-12 are profitable. "We wish to privatise these loss making hotels so as to make them attractive for tourists, especially foreign tourists coming into the state," she said.

"Karnataka has a vast tourism potential but it has not been tapped properly. Due to lack of world class facilities, not many foreign tourists are visiting the state. So we want to make our tourist destinations attractive to them with private participartion," she said.

The state tourism department is presently in the process of identifying these loss-making hotels in various tourist destinations and put them up for disinvestment in a phased manner, she told Business Standard.

The corporation has so far leased out 28 properties in different places, 13 of them have been taken by Oil and Natural Gas Corporation (ONGC).

The department is planning to develop tourism destinations in the state in association with private developers to make them more attractive to tourists, she said. The Casino Group of Hotels from Kerala is developing a hotel with yoga and massage centre at Gokarna, a popular pilgrim centre on the west coast in Uttara Kannada district.

Shanthakumari said the state government is making elaborate arrangements for the forthcoming 'Mahamastakabhisheka' of the monolithic statue of Bahubali at Shravanabelagola. The government plans to use this event to put Karnataka on the world tourism map. The Department is billing it as a major World tourism event in 2006 and started working towards realising the goals, she said.

The department has already kicked off preparations for the event, which is held once in 12 years.

It is circulating brochures, compact discs, booklets, colourful and attractive posters among the tourist centers across the world, especially to tourist agencies.

The government of India has contributed Rs 75 crore, while the state government has earmarked Rs 25 crore for organising the event, she said.

In an effort to accomodate large number of tourists visiting the event, the department is putting up over 5,000 makeshift tents and 50 tents are being put up by Jungle Lodges and Resorts for VIP guests.

The department is presently organising roadshows in all the state capitals and making presentations to travel agents and media operators. Roadshows have been recently held in Kolkata and Mumbai.

The Union government has released Rs 18 crore during the present year to tap tourism potential in the state, while the state government has earmarked Rs 18.05 crore, she added.

The number of foreign and domestic tourists visiting the state has marginally declined over the last two years.

During 2003, 1.12 crore Indians and 2.52 lakh foreigners visited the state, while last year the number of foreign visitors has gone up to 5.30 lakh and the number of domestic visitors to the state has declined to 1.06 crore.

The department has set a target of attracting 25 million tourists in the next five years. The forthcoming Mahamasthakbhisheka at Shravanabelagola will be a big crowd puller.