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CAG report shatters myth of tourism boom

Special Correspondent

OTDC’s share of domestic and foreign tourists is reported to be insignificant

OTDC incurred overall loss in the operation of hotels during 2002-03 to 2005-06
The occupancy rate in the hotels never exceeded 49 percent

BHUBANESWAR: Contrary to Orissa Government’s claim that it was doing a lot to ensure growth of tourism, the Orissa Tourism Development Corporation (OTDC) has badly failed in achieving its objectives.

According to the latest report of the Comptroller and Auditor General of India, OTDC’s share of domestic and foreign tourists was insignificant and ranged between 1.54 percent and 4.70 percent during 2002-03 to 2006-07 as compared to total tourists, who visited the State during the period.

No star hotels

What was saddening is that none of the hotels of OTDC had star-grade facilities to attract high spending foreign tourists.

More than 75 percent of the 30,189 foreign tourists, who came to Bhubaneswar between January 2004 and September 2006 stayed in hotels having tariff range of Rs. 950 to Rs. 14,000 per day.

During the same period the number of foreign tourists, who stayed in OTDC-run Panthanivas in the city was only 2.75 percent although the highest tariff of the unit was Rs. 750 per day.

The Panthanivas at Rourkela could attract only 13 foreign tourists out of the 1,221 foreign tourists who stayed in the hotels in that town from 2003 to 2007, according to the CAG report.

Despite being in the business since 1979, OTDC had failed to meet the challenges from private operators, it said.

Moreover, OTDC incurred overall loss in the operation of hotels during the period 2002-03 to 2005-06. The targets were fixed on the lower side, which also could not be achieved in most of the cases.

The occupancy in the hotels never exceeded 49 percent and in six units, the occupancy was consistently below the average. “Poor occupancy was due to failure to provide necessary facilities to the tourists and to give adequate attention to advertisement and publicity,’ the report said.

Further, OTDC had no system of redressal of complaints or grievances received from the customers, according to the report.

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