Himachal Pradesh: 14 State-Run Hotels to Go Private; Govt Aims for Financial Turnaround
The Himachal Pradesh Tourism Development Corporation (HPTDC) is set to lease out 14 of its loss-making hotels and cafes to private operators. This decision, green-lit by the state cabinet, aims to revitalize the corporation’s struggling finances.
The move involves signing operate and maintenance agreements with private entities. Crucially, government ownership of the properties will remain intact, and existing HPTDC employees will retain their jobs and service terms.
A high-level committee, formed to assess HPTDC’s financial health, had recommended this leasing strategy as a viable solution. The committee’s report highlighted the unsustainable operational costs associated with these underperforming assets.
This strategic decision is expected to inject much-needed capital into the HPTDC, allowing for reinvestment in other tourism initiatives and boosting Himachal Pradesh’s overall tourism sector. The success of this privatization effort will have significant implications for the state’s economy and its ability to attract further investment in the tourism sector. The long-term impact on employment within the HPTDC will also be closely watched.
