Most hoteliers in Shimla are worried on this count.
Against the requirement of 40 million litres of water a day, the supply is 30 million litres per day.
Harnam Singh Kukreja, president, Hotel Association, Shimla, says the water problem has been hobbling hotels in Shimla.
Now hoteliers are paying to make up for the deficiency.
Few hotels have bought tankers to meet the water shortage.
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Mohinder Kumar Seth of the Hotel Lords Grey said, "Almost 99 per cent of the hotels in Shimla have private arrangements with tankers. On average, a hotelier spends close to Rs 1,000 on a tanker."
Umesh Akre, proprietor of the Hotel Himland East, says solving the water problem could help the hotel industry bloom in the town.
Many other hoteliers also believe that if the water problem is taken care of, not only can the hotel industry be saved from stumping up hefty amounts but the money saved can be utilised for providing better facilities to the tourists.
Representatives from the hotel industry who recently met Chief Minister Prem Kumar Dhumal were assured their problems would be looked into.
The chief minister recently announced that the Giri water supply scheme would start soon.
This could help in mitigating the problems of Shimla.
Apart from that, the state government is exploring the possibility of launching the Gravity Water Supply Scheme for Shimla town, from the Pabbar river, estimated to cost about Rs 730 crore.