Occupancy poor, court orders closure of 16 HPTDC properties

The Himachal Pradesh High Court today ordered for the closure of 16 properties of the HP Tourism Development Corporation (HPTDC) with effect from November 25, 2024.

As per the order, the properties includes, The Palace Hotel, Chail; Hotel Geetanjali, Dalhousie; Hotel Baghal, Darlaghat; Hotel Dhauladhar, Dharamsala; Hotel Kunal, Dharamsala, Hotel Kashmir House, Dharamsala; Hotel Apple Blossom, Fagu; Hotel Chanderbhaga, Keylong; Hotel Devdar, Khajiar; Hotel Giriganga, Kharapatthar; Hotel Meghdoot, Kiarighat; Hotel Sarvari, Kullu; Hotel Log Huts, Manali; Hotel Hadimba Cottage, Manali; Hotel Kunzum, Manali; Hotel Bhagsu, McLeodganj; Hotel The Castle, Naggar; and Hotel Shivalik, Parwanoo.

While passing this direction, Justice Ajay Mohan Goel directed the Managing Director of the Tourism Development Corporation would be personally responsible to ensure the enforcement of this order. The court further ordered that the skeletal staff which is necessary for the upkeep of the property be retained on the premises of the properties which have been named hereinabove and the Tourism Development Corporation would be at liberty to transfer the remaining of its employees so that its need in other places.

While passing this order, the court observed that “as running of these properties is apparently not financially viable as of now and in order to ensure that public resources are not wasted by the Tourism Development Corporation in the upkeep of these white elephants.”

The court passed this order after perusing the occupancy position of the 56 hotels being currently run by the Himachal Pradesh Tourism Development Corporation as from the month of January to December, 2022, 2023 and till October, 2024.

After perusing the same, the court observed that “A perusal of the occupancy position, which is taken on record, demonstrates that the things are much more dismal than what was being apprehended by the court.”

The court further observed that “to give a few illustrations, the Hotel Pinewood of HPTDC at Badog, which has 30 rooms, had 40.02 per cent occupancy in the year 2022, 31.61 per cent in the year 2023 and 36.84 per cent in the year 2024. Similarly, the Palace Hotel, Chail, Solan district, which comprises of 50 rooms, had occupancy of 28.39 per cent in the year 2022, 24.42 per cent in the year 2023 and 26.62 per cent in the year 2024. This court would only be referring to those hotels which in the course of the arguments before this court were claimed to be the flagship hotels of the Tourism Development Corporation.”

It further observed that “the hotels in terms of occupancy position, which have occupancy of more than 50 per cent are Hotel Hamir, Hamirpur; Hotel Jwalaji, Jawalamukhi; Hotel Ros Common (Old), Kasauli; Hotel Tourist Inn, Rewalsar; The Suket, Sundernagar; and Himachal Bhawan, Chandigarh.”

Justice Ajay Mohan Goel further observed that “the above clearly demonstrates that the Tourism Development Corporation has not been able to utilize its properties to earn profit therefrom. The continuation of the functioning of these properties but natural is nothing but a burden on the exchequer of the state and the court can take judicial notice of the fact that there is a financial crunch which is daily being propagated by the state in the matters being listed before the Court involving finances.”

The court further directed the Managing Director of Tourism Development Corporation to file a compliance affidavit qua implementation of the order that has been passed by the court today and also furnish a list of those superannuated employees who belong to Class-IV category and those employees who are no more in the world, so that amount that has been generated from the dues that have been received by the Tourism Development Corporation can be ordered to be released in favour of the retired employees and family members of deceased employees.

The court passed this order on a petition filed by the ex-employee of the HPTDC that the corporation is not paying the retiral benefits to its employee due to its poor financial condition. After hearing the matter, the court listed the same for compliance on December 3.