Since the existing status of their land is residential, these budget hotels, which account for 80% of the room inventory in the city, are unable to raise money and restart the operations.
At various levels of the government, including the chief secretary, the merits of land-use change has been appreciated and proposed. The UDH has also prepared the final draft. But so far, the policy for land use change of the budget hotels has not been rolled out.
“We want the government to notify the policy as soon as possible because a lot of budget hotels are in serious distress condition due to lack of business. These hotels cannot raise money and pay staff and other fixed costs,” said AC Maini, patron of Hotel Association of Jaipur.
Maini said while the domestic tourist movement has started, it is currently confined to the resorts and week-end tourists. “The budget hotels are not benefitting from the current movement of travelers. Unless the volume of tourists improves, the budget hotels will not get the business,” added Maini.
He said the hotel industry is forced to pay fixed charges for electricity, and that too at the commercial rates which are very high. “We have been declared as industry in 1989, but the benefits are not extended to the budget hotels.”
He said people need capital but the banks are not lending to the budget hotels because they are built on residential category of land. “That’s why it is urgent that the UDH permits the change in land use as soon as possible without which many of the hotels will go belly up,” he added.
Ranvijay Singh, joint secretary, Hotels and Restaurants Association of Rajasthan said that most of the hotels are concentrated in and around bus stands and railway stations and they are as old as 40 years.
Singh said, “The government has not given any meaningful stimulus to the hotel industry. But they can do so by announcing the policy which will not cause any additional fiscal burden on the state, rather increase its tax revenues.”