As Himachal fails to attract tourists, hoteliers approach CM to help revive tourism

As Himachal fails to attract tourists, hoteliers approach CM to help revive tourism

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Hotel and restaurant associations in Himachal Pradesh have approached Chief Minister Sukhvinder Singh Sukhu to help revive and rejuvenate the state’s tourism industry, which is home to scenic mountain towns and resorts such as Dalhousie. Incessant rains followed by floods and landslides in July and August have kept visitors at bay. The Federation of Himachal Hotels and Restaurant Associations suggested have requested the CM to reduce taxes and exempt entry taxes for commercial vehicles entering the state, PTI reported.

Gajender Thakur, President of association that represents hotel and restaurant associations in Himachal, stressed that substantial losses have incurred by the tourism sector due to recent calamities and negative portrayal of the state on various platforms. This has led to a complete dearth of business, as travellers are apprehensive about visiting Himachal. But if taxes are exempted, it could encourage tourists to visit the state.


Given the approaching winter season from October, Thakur underscored the urgency of taking immediate steps to revive tourism and instill a positive outlook. The letter reiterated the significance of tax reductions and entry tax waivers as vital measures to entice tourists, recognising the broader economic benefits their arrival would bring to the state.

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In a letter the association pointed out that the state government could benefit from increased revenues, including VAT on petrol, diesel, and liquor, as well as GST on various aspects of tourism like hotel stays, dining, shopping, and other expenditures. A substantial workforce would be employed, contributing to the state’s economy.

The association members shared challenges faced by the hotel industry, including maintenance expenses and lease payments. They proposed a reduction in electricity charges for six months, similar to measures taken during the COVID-19 pandemic. They have appealed for discounts on water and garbage disposal to alleviate the financial strain on the sector. A request for a one-year tax rebate was also presented and the Chief Minister to raise the matter with the central government.

In addition to these measures, the associations urged the state government to expedite restoration of damaged national highways, emphasising their critical role in the state’s connectivity.

To promote tourism in the coming days, Thakur suggested leveraging social media platforms and advertisements to showcase prominent tourist destinations. He encouraged the tourism department to collaborate with travel bloggers to amplify the appeal of these areas.

According to officials from the tourism department, Himachal Pradesh incurred losses of approximately Rs 2,000 crore during July and August due to extensive rain-related damage to its road infrastructure. The tourism sector, contributes seven percent to the State Gross Domestic Product (SGDP) and provides approximately 14.42 percent of direct and indirect employment, overall contributing over Rs 14,000 crore to the state’s economy.

With inputs from agencies

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