Himachal PradeshNorth India

Himachal Pradesh tourism industry is near its collapse

Many hotel owners are selling their hotel properties to avoid total bankruptcy.

The pandemic has given major blows to the economic stability of the tourism businesses that include travel agencies, tour operators, and hotels. The local authorities have appealed to the Chief Minister of Himachal to help them recover from the financial setback.

The Kangra district has reported a total loss of 300 billion Rupees due to the pandemic. The hotel owners who have taken loans from the banks to start their businesses are suffering the most due to the lack of incoming tourists. Also, hotel owners are selling off their properties to prevent total bankruptcy.

The situation is not expected to improve anytime soon as the Covid-19 crisis is getting worse for businesses. The hotel owners requested to government to give them some benefits in terms of waiving off of property taxes and several excise duties for the next 2 years. According to the hotel owners, this will help them keep their businesses afloat.

The major chunk of businesses in Himachal Pradesh is dependent on tourism and it contributes greatly to the state’s economy. The lack of incoming tourists and persistent lockdown measures have resulted in major losses for the state’s economy along with job losses that made the lives of the locals miserable.

As of now, there is no clear decision from the government in regards to helping the business owners related to the tourism industry. Only time will tell how long the lockdown restrictions will last. Until then, the selling of hotel properties will continue along with job losses.

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