Gorkha agitation in North Bengal hits hospitality business
Posted by barunroy on July 8, 2008
From HospitalityBizIndia
By Satarupa Chakraborty | Darjeeling
The recent Gorkha Janamukti Morcha-led Gorkha agitation in North Bengal has led to a substantial drop in the state’s tourism and hospitality trade. The Gorkha’s demand for a separate state (Gorkhaland) has greatly affected five million tourism businesses in Darjeeling. Over 100 Darjeeling hotels and others in neighbouring states remain vacant, even in the current peak tourist season.
On the political unrest affecting the flourishing tourism and allied trades, Manab Mukherjee, Tourism Minister, West Bengal, comments, “The unfortunate civil disorder has made the tourism and hospitality industries, which are the prime revenue generating trades in the region, receive a major setback. Although it is difficult to comment on the exact loss, Darjeeling has witnessed a big slash in its entire economy.” The protests and the movements have been called off till July 5, 2008 and the agitation is expected to resume thereafter.
Panchwati Holiday Resorts, a Kolkata-based hospitality group with three properties in Bengal and Orissa, planned to launch hospitality properties in the state by March end. The projects have been postponed for an indefinite period of time. Anshul Sharma, General Manager, Panchwati Holiday Resorts Ltd, says, “Earlier, we had plans to start a passenger amenities centre, along with a 45 room hotel at Sevok Road in Siliguri. All the plans have been postponed as of now, since hotels are vacant even in this ideal season to visit Darjeeling.” Presently, many hospitality majors who are at mid-project stages in the Tea Tourism Circuits and Eastern Dooars are calling off their ongoing projects. T V N Rao, Managing Director, West Bengal Tourism Development Corporation, says, “Darjeeling, the prime location of tea tourism and the gateway of seven select tea tourism circuits, is experiencing massive losses. Tea Tourism, which is one of the State Tourism’s USPs and a major tourism product of the state, has attracted hospitality giants across India to launch projects.” However, the recent unrest will postpone these projects, which will affect the state’s tourism and hospitality opportunities.
Vinaey Malhotra, Managing Committee Member of Hotel and Restaurant Association of Eastern India (HRAEI) and Managing Director, Viramma Group (which has resorts in Siliguri and Darjeeling), says, “In previous years, during this season, we earned around Rs 2 Lakh per month from both properties. The income this year is not even Rs 2000. I do not see any betterment of the situation in the next two months. This agitation has rendered a long-term loss, not only in the district, but in entire North Bengal and the North East, especially in terms of earning foreign exchange.” Malhotra opines that it is time for the Centre to intervene, in order to save this Rs 5 million industry.
The Gorkha protests were supposed to begin in July, but the agitation started much earlier. This has affected the peak tourist season in North Bengal. The political turmoil has also led to poor communication and transportation systems; the GJM has demanded a ‘GL’ (Gorkhaland) quote on their vehicles instead of the ‘WB’ (West Bengal) already in place. “This season is followed up by the monsoon season, when there is no business opportunity for hoteliers. We plan to set up a different local association of hotels in Darjeeling to deal with the aftermath of the agitation in the hospitality industry,” informs Malhotra.
