Illegal units hit Shimla hoteliers hard

Bhanu P Lohumi

Tribune News Service

Shimla, July 25

The rapid growth of unregistered accommodation in and around Shimla is having a ruinous effect on the tourism industry, with registered hotels witnessing a sharp fall in occupancy. 

Even illegal structures awaiting regularisation are selling rooms online, creating an unhealthy competition. 

As many as 354 units in and around Shimla are neither registered with government departments nor are they enlisted under the Homestay and Bread and Breakfast (B&B) schemes; and are operating online, states a report prepared by the Tourism Industry Stakeholders Association.     

“The tariff of registered hotels is fixed by the Tourism Department, but the online operators are booking rooms in private flats, houses, bungalows and villas by misleading tourists. They display exorbitant prices and offer 70 to 75 per cent discount, hitting the hotel industry hard,” said president of the Tourism Industry Stakeholders Association MK Seth.    

Owners of a large number of unregistered accommodation at Dhudhli, Bharari, New Shimla, Keleston, Vikasnagar, Malyana, Sanjauli, Sanghti, Chakkar, Tara Devi and Shoghi are doing a roaring business. These units have come up along narrow roads, making driving dreadful.

There are 483 registered hotels and guest houses in Shimla district; 332 homestays and 178 B&B units. 

As per guidelines, a homestay can have a maximum of three rooms, while under the B&B scheme, six rooms are to be occupied by the owner, who stays in the same accommodation, but these norms are often flouted.

“It is intriguing that 90 per cent of the units being run under the B&B scheme have six rooms, which is the maximum limit, but there are numerous cases wherein different floors have been registered under the Homestay and B&B schemes in the name of either husband, wife or children,” said joint secretary of the association Rahul Chawla. 

Officials of the Tourism Department maintained that it was difficult to search private accommodation as intrusion into any private premises without evidence would tantamount to trespass and the owner could easily claim that the people staying in the accommodation were their guests. 

“We take action on specific complaints after inquiring into the allegations as running homestays and hotel units without registration is an offence, attracting action,” said Additional Director Tourism and Civil Aviation Manoj Sharma.

How to rein in such units

• Combing operation by the Tourism Department and the police against unregistered/illegal units
• Commercial tariff should be charged from illegal units from the date of their registration with portals
• Case under the cyber law be registered against portals encouraging unregistered units
• 483 registered hotels and guest houses in Shimla district

332 
legal homestays.

8,170
room capacity

178 
B&B units