Many Indian Tourism Development Corporation (ITDC) hotels are running in losses, the Lok Sabha was informed today.
"ITDC, which is under the administrative control of tourism ministry, runs 15 hotels. Some of these hotels are running in losses," Tourism Minister K Chiranjeevi said in a written reply to a question in Lok Sabha.
Amongst the ITDC-owned hotels, Ashoka in New Delhi is running at a loss of Rs 339.97 lakh in 2013-14 up to June. The hotel has been running in losses since 2010-11, he said.
Similarly, Hotel Lalitha Mahal Palace in Mysore is running at a loss of Rs 7.88 lakh in the current financial year. Jaipur Ashok, Hotel Jammu Ashok and Hotel Kalinga Ashok are running at a loss of Rs 93.74 lakh, Rs 15.73 lakh and Rs 81.79 lakh respectively, the minister said.
Amongst the ITDC-managed hotels, Hotel Bharatpur Ashok in Bharatpur (Rajasthan) is running at a loss of Rs 29.55 lakh in the current financial year up to June. Two joint venture ITDC hotels running at a loss are Hotel Ranchi Ashok (Rs 15.90 lakh) and Hotel Pondicherry Ashok (Rs 9.68 lakh).
Chiranjeevi said, "The reasons of losses are spurt in availability of overall room supply position as compared to demand, high wage cost due to implementation of Sixth Pay Commission report and weakening of global economy."
The minister said the government has taken various steps to boost the profitability like investment in human resource development and brand management, establishing customer relationship management system, aggressive marketing in India and abroad through participation in major travel marts and organising food festivals and others.
