SHIMLA: A cold war is brewing between the traditional hotel industry and the emerging homestay tourism. It's a clash of interests, each with its own perspective on what's best for the state's tourism-driven economy.
Himachal's hoteliers are growing increasingly frustrated as homestays gain popularity, especially in the already crowded hill stations.
They argue that the government should prioritize established hotels that have been contributing significant revenue to the state.
They point to issues like overcrowding, traffic jams, and parking problems plaguing these areas due to the mushrooming of homestays.
On the other side of the debate are homestay owners who see themselves as champions of rural tourism.
They say they pay same tax as the commercial hotels and are equally promoting tourism in the state. The hoteliers should should concentrate on their business rather than targeting homestays, which is none of their business.
They argue that they are not only promoting tourism but also providing employment opportunities in the state's interior regions.
Places like Lahaul-Spiti, Kinnaur, and Shimla have seen a boost in their local economies thanks to the rise of homestays.
However, critics contend that the government's focus on tourism has been myopic, with too much emphasis on registering new accommodations without creating enough tourist attractions or fostering a tourism-friendly environment.
The result? Unhealthy competition and a loss of government revenue, hoteliers claim.
The original vision was to take tourism to rural areas, decongest urban centers like Shimla, and provide employment in the hinterlands.
Unfortunately, more than seventy percent of homestays are concentrated on the outskirts of tourist hotspots, rather than spreading tourism to the countryside as intended.
The clash isn't just about accommodation; it's about policies. Stakeholders argue that the government formulates policies in isolation, without considering the ground reality.
Recent examples, such as the new tax on tourist buses and tempo travelers, have prompted travel agents and tour operators of Maharashtra, Gujarat and West Bengal to boycott Himachal, said Mohinder K Seth, President of Shimla Hotel, Stakeholders Association.
The hotel industry's backbone has been further strained by increasing taxes, fees, and utility costs. A 12 percent hike in electricity duty and charges on hotels generating their electricity through generators have dealt a heavy blow, hoteliers said.
In the end, what Himachal needs is a balanced approach that supports both traditional hotels and homestays, recognizes the importance of creating tourist attractions, and ensures sustainable tourism that benefits the entire state.
It's a challenge that requires careful consideration, collaboration, and a commitment to preserving the beauty and charm of this Himalayan gem while reaping the economic benefits of tourism.
