Room rates to remain flat

Hotel room rates are expected to remain flat at last year's levels during 2010-11, despite some moderate increases planned by industry players for the October season, coinciding with Commonwealth Games. One of the reasons for this is the new room supply to be added during the next one year, which will keep occupancy and room rates for the industry under pressure.

According to a Crisil report, the industry closed 2009-10 at average room rate (ARR) of Rs 9,255 (pan-India) for premium hotels, with an occupancy rate at 63.9% during the period. Room supply is expected to grow at a compounded average gross rate (CAGR) of 10% during 2009-10 and 2011-12, resulting in the addition of over 7,000 rooms.

Among all cities, Bangalore was the worst impacted with a drop of 33% in ARRs during 2009-10 to an estimated Rs 8,231 from Rs 12,227 last year. The city is mainly driven by business travel and, of late, has been seen as overrated. This year, Bangalore is expected to see some recovery in rates on the back of improved business environment. Crisil forecasts an ARR of Rs 8,378 for Bangalore for 2010-11.

Industry players are expecting a rise of just around 10% in room rates for the peak season and feel the current summer season will be a tough one for the industry.

“The summer season will be a difficult one for the industry due to the additional supply that comes in, that too, this being the first summer season after the financial crisis," said Trident Hotels president Rattan Keswani.

He added that sentiments in the market are strong and October season is expected to bring back the confidence into the market.

"Though it would not be as strong as in 2006-07, it will be good enough," he said. Hotel Leelaventure senior vice-president Rajiv Kaul adds: "The fourth quarter of 2009-10 has ended on a high note and we expect rates to be at sustainable levels."

He added that there will be a 10-15% revision in rates by hoteliers in October, the peak season.

Typically, the hotel industry revises rates every October, but last year, many players had shied away from revising peak season rates as occupancies were at low levels.

For the first three months of 2010, foreign arrivals have seen strong growth with January showing 17% growth, February 10% and March 13%. This is over a drop of 17% in January 2009, 10% in February'09 and 8% in March'09. Ministry of tourism secretary Sujit Banerjee has said that the forex earning has grown by 15% during January-March.

Spurcing up Delhi's Heritage

What happens when one of the most arcaeologically rich cities hosts a sporting event second only to the Olympics? Tourists get twice the fun for the price of one. While attending Commonwealth Games 2010, they can slip out any time to visit any of the 1,200 heritage monuments this city has to offer.

With as many as three world heritage sites — the Qutab Minar complex, Humayun’s Tomb complex and Red Fort complex — to boast of, the Archaeological Survey of India (ASI) is getting ready to showcase the legacy of the Capital during the Games.

Of the 175 ASI-protected monuments, work has begun on sprucing up 46 of them.

"These monuments are mostly important ones like the world heritage sites and also those on the routes of Games venues. The list also includes a few lesser known monuments,” said KN Shrivastava, ASI director-general.

Conservation and/or repair work will be carried out at most monuments. For instance, the Tughlaqabad Fort wall and the Siri Fort wall are being restored to their original glory.

The ASI is carrying out chemical treatment at a few monuments that need cleaning up. “The residents and regular visitors to the Hauz Khas area are witness to how the black colour on most of the monuments due to moss has given way to a clean sandstone yellow (or the original colour of the monuments) after chemical treatment,” said an ASI official.

“The landscape around helps build its ambience. So we are focusing on environmental development like lawns and other horticulture interventions,” said an official from the horticulture branch.

Tourists can also enjoy ‘Delhi at Night’. India Tourism Development Corporation (ITDC) has identified more than 20 monuments and these are being lighted up by ITDC.

While the world heritage sites have basic public utilities like toilets and drinking water, they aren’t available at all 46 monuments. Plans are afoot to provide these facilities at all of them. Uniform brown stone signage would also come up at all sites.

“The additional facilities would include publication counters that will have brochures telling the history of the place, audio guides, cafeterias and the like as available at the three world heritage sites,” said another ASI official.

Source: Topnews.in