Portfolio

Hospitality to play key role in Mangalore

A. J. Vinayak | Updated on November 15, 2017 Published on January 14, 2012

At the recent Coastal Business Development Summit, investment proposals to the tune of Rs 1,500 crore in various sectors were submitted.



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

Published on January 14, 2012

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.