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Coastal Karnataka, especially Mangalore, expects major investments to the tune of nearly Rs 145 crore in the hospitality sector. In the recently-concluded Coastal Business Development Summit in Mangalore, investment proposals worth more than Rs 1,500 crore in various sectors, including hospitality, were submitted during the two days.
Some of these investments are likely to have more relevance to property development in the coastal region, as some investors have sought to invest in such areas. Prominent among them are the hospitality industry and eco-tourism, among others.
In spite of having good tourism potential, coastal Karnataka hasn't attracted much investment in the area of hospitality, barring a few.
Mangalore region has two properties from Taj group — Taj Gateway and Ginger. In the past five years, the city has seen the establishment of three business-class hotels from some private investors in the region.
HOSPITALITY
The proposals for investment in the hospitality sector at the Coastal Business Development Summit included the construction of a five-star hotel, a three-star hotel and a business-class hotel in Dakshina Kannada district, and a business-class hotel in neighbouring Udupi district. The projects in Dakshina Kannada are estimated to generate around 350 jobs in the region.
The big ticket investment in the hospitality sector will be in the construction of a five-star hotel and convention centre. Proposed by IAS Hotels and Resorts Ltd at Kotekar in Mangalore, this project is estimated to attract an investment of around Rs 105 crore in Mangalore. In the memorandum of understanding (MoU) signed with the Karnataka Government, the promoter has indicated December 2014 as the proposed year of commencement for the project.
The Mangalore-based Hotel BMS Pvt Ltd has expressed interest to set up a three-star hotel on the Mangalore-Udupi highway near Mangalore, with an investment of around Rs 25 crore in the project. Mr K. Rajavarma Ballal, director of the hotel, who signed the MoU with the Government, has indicated that the project will commence during this year itself.
One of the investors from Dakshina Kannada district has also shown interest to invest around Rs 5.82 crore in a business-class hotel project in Bantwal taluk (neighbouring Mangalore taluk) of Dakshina Kannada district. In the MoU with the Government, the promoter has indicated that the project will commence this year itself.
The Coastal Business Development Summit also got a proposal from a promoter to set up a business-class hotel in neighbouring Udupi district. The Manipal-based Hotel Central Park has shown interest to invest around Rs 10 crore in the business class hotel in Udupi district. The project, according to the MoU, is proposed to commence by December 2012. However, no investment proposal was received for the hospitality sector in Uttara Kannada district of coastal Karnataka in the summit.
TOURISM
Tourism property development is another area that is attracting investments from investors in the region. There was an investment proposal to develop agri eco-tourism in Mangalore taluk. The proprietor of Oddoor Farms at Ganjimath in Mangalore signed an MoU with the Government, for investments to the tune of Rs 8 crore in agri eco-tourism at Ganjimath in Mangalore taluk. The project, which is proposed to commence from April 2013, is likely to generate 40 jobs.
While inaugurating an adventure tourism camp in Mangalore recently, Mr N. Yogish Bhat, Mangalore MLA and Deputy Speaker in Karnataka Legislative Assembly, had stated that one of the investors from Mumbai has shown interest in developing an island in River Nethravathi for tourism purposes. Declining to reveal much information on the project, he had said that it is in the initial stages of discussion with the Government. If it materialises, the project is estimated to attract a huge investment in Mangalore tourism, he had said.
Ms Lata R. Kini, President of Kanara Chamber of Commerce and Industries (one of the organisers of the business development summit), said that it is essential to relax CRZ (coastal regulation zone) norms in Karnataka to boost the growth of tourism in the region. She said that CRZ norms should be revisited and made at par with the neighbouring states. There is a need for improving road connectivity to various tourist spots, and to provide civic amenities at tourist centres, she added.
With most of the proposed projects likely to come up in Mangalore and its surrounding areas, the region's property development in these sectors is expected to get a boost in the coming months.
Feedback to > blproperty@thehindu.co.in
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