The Hindu Business Line : Hotels brace for bleak period

Tiruvananthapuram/ Chennai/Mumbai, Nov 28 The terror attacks on Mumbai are seeing hotels across the country resign themselves to poorer business, due to the cancellations that have inevitably begun to follow, and the lack of new bookings.

Mr Nakul Anand, Divisional Chief Executive (Hotels), ITC Ltd, Hotels Division, said, “This is having an impact all across India. However, only time will tell the extent of it. Currently, there are no fresh bookings, and there are cancellations too.” On whether the bookings for the forthcoming Christmas and New Year period is being affected as well, he added, “For our business properties, December 20 to January 10 is anyway a lean period. However, for our leisure properties, bookings are likely to be down.”

A spokesperson for the Leela Group of luxury and business hotels said it was too early to gauge the extent of the impact. “The business across India will get impacted. Things are changing on a daily basis. There are less rooms in Mumbai as a result of the incident, and it will take a while to assess how the properties in other cities will do.”

Kerala scene

Kerala’s tourism industry is bracing itself for a fall in foreign tourist arrivals.

“The attacks on Mumbai will affect the tourism prospects of India and naturally will have an effect on Kerala,” said Mr E.M. Najeeb, President of the Confederation of Tourism Industry of Kerala. The State’s tourism sector has been anticipating a 25-30 per cent drop in total tourist arrivals due to the global economic slowdown and the terrorist attacks on Mumbai will add to this grim outlook, he added.

Hotels and resorts across the State, including those in popular tourist destinations such as Kovalam and Fort Kochi, have already started receiving cancellations, Mr Najeeb said. According to a senior executive of a major hotel chain with a resort in Kovalam, many cancellations are by tourists scheduled to travel to Kerala via Mumbai. Some of them could have been prompted by the cancellation of international flights into Mumbai, the executive added.

Most cancellations that have come in so far are for bookings over the next ten or so days, said an executive with a Kerala-based hotel chain. Tourists scheduled to travel to Kerala after December 15 currently seem to be following a ‘wait-and-watch’ strategy, he added. Travel advisories issued by Australia and France could have an impact on tourism in India, he pointed out. “Adverse travel advisories mean that tourists will not be able to get travel insurance to travel to India,” he explained.

Chennai situation

There haven’t been too many cancellations in Chennai hotels in the last two days. An executive of a leading leisure hotel at Mahabalipuram near Chennai says there were only a few, that too because of the inclement weather. “In fact, a group of tourists from Europe has checked in today,” he added. Mr T. Natarajan, CEO of the GRT group of hotels, also says there are only a few cancellations for reasons such as rains and the resulting cancellation of some flights to Chennai. “It will take at least a week for us to know the impact of Mumbai incidents on our occupancy,” he says. Three- and four-star hotels also report no bulk cancellations. On the contrary, some hotels report improved occupancy today because of cancellations of flights between Chennai and other cities.

Security beefed up

Hotels across the country have beefed up their security arrangements. Hotels including those of Taj and Oberoi groups have introduced extra layers of security checks at their properties. A release from the Taj group says the management and staff are working closely with the relevant authorities and providing them full cooperation for the safety and security of all guests and staff.

In Chennai, the Tamil Nadu Police has provided additional security to top hotels. All cars and baggage of the occupants are being thoroughly checked before they are allowed to enter the hotel. Oberoi group’s Trident hotel in Chennai too has intensified security. Security guards at the hotel even frisk individuals before they are let in. “Our guests too cooperate with us,” says an official.

“We don’t even allow vehicles from outside into our hotels. We stop all cars at the main gate and only our cars transport people and luggage from the main gate into the hotel,” says Ms Priti Chand, spokesperson for the Phoenix group that runs three five-star properties in Kerala and Goa.

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