The non-approval of building plan for new hotel projects at Sipasarubali in Puri district for the past five years due to problems pertaining to Coastal Regulatory Zone (CRZ) Act has stifled the growth of the hospitality industry in the state.
Hotel and Restaurant Association of Orissa (HRAO), the apex body of the hoteliers in the state, has alleged that no action has been taken by the district administration and the forest department to resolve the problems related to CRZ at Sipasarubali.
Interestingly, Sipasarublai has been chosen as the site for the Rs 4000-crore Shamuka tourism project, touted as the showpiece project of the Orissa government.
The inordinate delay in approving building plans for hotel projects at the site has cast a shadow of uncertainty over it.
J K Mohanty, chairman of HRAO saidm “We have submitted a memorandum to the state Chief Secretary T K Mishra to resolve the problems pertaining to the approval of the building plans for hotel projects soon.”
It may be noted that the issues mentioned by HRAO in its memorandum were in the agenda for discussion for the 'Open House Session' organized by the state government owned Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol) on Wednesday.
However, the issues could not be taken up as per schedule due to constraints of time and the preoccupation of the officials of the concerned departments due to the ongoing session of the assembly.
In its memorandum, HRAO has mentioned that the renovation work on the road stretching from Hotel Hans Coco Palm to Hotel Sterling Resort in Puri which was damaged by tidal waves is yet to start even though the state chief minister had sanctioned Rs seven crore for the road in 2007.
The association has also pointed out that no effort has been made to spruce the beaches at Puri and Gopalpur despite a barrage of complaints from the tourists.
It has also stated that no new tourism policy has been announced in Orissa since 1997 and consequently, not a single new star hotel has come up in the state.
Last week, HRAO had submitted a memorandum to the state tourism department, stating that an investment of Rs 2000 crore is needed over the next five years to add 4000 rooms in the three-star category and 1000 rooms in the five-star category.
These additional 5000 rooms have the potential to create employment for around 50,000 people and also generate an income of Rs 3000 crore in the next five years.
HRAO has suggested that an additional 500 acres of land needs to be identified in Special Tourism Zones in all districts of the state and this land needs to be allotted to the prospective hotel chains.
Since land cost is a major component of the hotel project and is escalating with the passage of time, the association feels that the hotel developers should be allowed to pay the land cost in tranches.
HRAO has also stressed on a sound tourism policy which focuses on attracting investment along with adequate emphasis on infrastructure and marketing.
