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Game over for hotel industry?

By: Urvashi Seth  

Controversies surrounding the CWG have hit hoteliers hard with very few advanced bookings reported in Delhi and Maharashtra

The hotel industry, which was looking forward to the Commonwealth Games (CWG) to lift it out of a two-year slump, has become an unlikely victim of the corruption surrounding the Games.

With only 50 days to go for the CWG to begin,  hoteliers in Delhi and Maharashtra are lamenting the fact that they have received very few advanced bookings.
 
Maharashtra's hoteliers were expecting tourists to visit the state especially Mumbai after the games got over.

Hoteliers say the turnout for the Games seems to be much lower than expected.


In Delhi, only 1,700 rooms have been booked out of the nearly 17,000 available in various hotels. "We had expected a surge in advance bookings at our Gurgaon hotel but the controversies surrounding the games have eaten into the business.

The industry has been facing a setback for over two years since the terror attacks and we were hoping that the CWG would be a good opportunity to do business but that doesn't seem likely now. What's the point in increasing accommodation if tourists don't come at all," said SP Jain, managing director, The Pride Hotels.

He added that the industry was expecting nearly one lakh visitors during the Games but are now expecting a much lower turnout.

Echoing his views, Rattan Keswani, president, Trident Hotels, said, "We have appealed to our loyal customers via e-mail to make advance bookings for CWG in our Delhi hotel, but we are yet to get any bookings.
 
While hoteliers are looking at the CWG as a great opportunity to do business, tourists are reluctant to make any advance bookings due to the ongoing controversies."

Mumbai hotels

"We welcome guests to stay at our hotel in Mumbai but we are not adding any extra rooms there," added Keswani.

Sunil Talera, president, Hotel and Restaurant Association (Western India), grumbled about the hotel industry's plight. "We expected tourists to come to Mumbai after visiting Delhi for the CWG.

But that doesn't seem likely given the current scenario.

Perks have been given to Delhi hoteliers but the government did not think of the revenue that the entire country could have made if the games were promoted properly. We are disappointed," he said.

Rs 1,708 Cr
Revenue expected from the CWG

Publicity Budget
The Sports Ministry has a budget of Rs 275 crore for overseas campaigns and publicity for 2010-11. It has been running campaigns in South Africa, New Zealand, Australia and Canada among other Commonwealth countries.

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