Slowdown Hits Vizag’s Hotel Industry

Luxury hotels

     Tourism plays an important part in a nation’s economy as it not only generates jobs but also attracts people to visit places thereby pumping money into the local economy.
A thriving hospitality sector therefore is a significant indicator on how the local economy is doing.
    This year has been a tough year for the city’s star hotels most of which have been reeling under a slowing economy, lacklustre sales etc.
   ‘When the economy slows down we as a sector are the first to witness the slowdown’ said Mr Rajesh Nath, GM, ITC Grand Bay.
Most of the city’s star hotels have seen there growth dwindle this year compared to last year.
   ‘Overall 2018 was more buoyant than 2019. It has been a challenging year for us. It has been even difficult to meet our projections for this year.’ said ITC’s Nath.
    This sentiment is resonated by many of the other star hotels in the city. ‘It’s been a bad year for us in terms of growth. ARR’s have been static’ said The Park’s Mr. Jaydeep Biswas.
    Mr Biswas explains that for a hotel to grow there needs to be a 10-12% increase in their prices which has not happened. Due to a sluggish economy business travel has taken a huge back seat thereby dramatically affecting hotels.
    ‘Being a corporate hotel we have been adversely affected by the slowing economy. We have had negative growth compared to last year’ said Fortune Inn’s Mr. Ajit Kumar.
    As most blame the economy, the city’s erratic air connectivity is often sighted as a major point of concern. ‘Air connectivity to Vizag remains a pain point. For us a lot of business comes from banquets hence good and effective air connectivity is important. Fares to & fro Vizag have become soo high that it often becomes cheaper for our customers to have a destination wedding abroad than come to Vizag said Novotel Varun Beach’s Mr. Rajesh Gopalakrishnan’
    Concurs The Park’s Jaydeep ‘Air connectivity is major problem. Tell me one Tier 2 city which Vizag is connected to directly. Vizag doesn’t even have direct flights to Bhubaneswar or even Raipur. In fact for a significant period of time air connectivity to our very own state capital Vijayawada was absent. Direct air connections to Tier2/3 cities need to be looked into’.
    The hotel industry has also been facing issues in terms of skill shortage. It is informed that the industry needs more skilled manpower as attrition remains high therefore creating need for more hotel management schools in the city.

Share on linkedin
LinkedIn
Share on email
Email
Share on facebook
Facebook
Share on twitter
Twitter