Mandi/Shimla, November 22
The Himachal Pradesh High Court has provided temporary relief to the Sukhvinder Singh Sukhu-led state government in the contentious matter of the court order to close down 18 loss-making hotels of the Himachal Pradesh Tourism Development Corporation (HPTDC).
On Friday, Justice Ajay Mohan Goel’s bench ordered that nine of the 18 HPTDC hotels could remain operational until March 31, 2025, granting a breather to the government amidst growing criticism from the opposition and stakeholders.
The decision covers nine prime properties, including Hotel Chail Palace, Hotel Chandrabhaga (Keylong), Hotel Khajjiar, Hotel Meghdoot (Kiarighat-Solan), Log Hut (Manali), Hotel Kunzam (Manali), Hotel Bhagsu (McLeodganj), Hotel Naggar Castle (Naggar, Kullu) and Hotel Dhauladhar (Dharamshala), which were earlier slated for closure as part of the government’s austerity measures.
High Court ordered closure on November 17
In its November 17 order, the High Court raised concern over the HPTDC’s financial losses and urged the government to implement effective measures to revitalise the corporation. It emphasised that merely closing down hotels was not a sustainable solution. Instead, it recommended that the government explore options such as public-private partnerships (PPPs) or leasing out properties to keep them operational.
The high court noted that shutting down hotels without exploring alternative revenue models would negatively impact the state’s tourism sector, which is a significant contributor to Himachal’s economy. Furthermore, the court instructed the HPTDC to present a comprehensive revival plan in the next hearing, ensuring the corporation’s operations are aligned with sustainable financial strategies.
Opposition criticises government’s approach
The opposition BJP has accused the Sukhu government of “gross mismanagement” of state resources. Speaking to reporters, a senior leader of the opposition said, “The government’s decision to close these iconic hotels reflects its failure to manage the tourism sector efficiently. Instead of addressing the root cause of the HPTDC’s losses, they resorted to abrupt closures, which would have not only hit tourism but also affected thousands of livelihoods.”
Another opposition MLA called the government’s policy a “short-sighted approach”, alleging that the administration was ignoring the broader implications on employment and the economy. “Tourism is the backbone of Himachal’s economy. Instead of closing hotels, the government should invest in improving infrastructure and marketing to attract more tourists,” the MLA said.
Government’s welcomes HC order
The state government has welcomed the High Court’s order, expressing relief that the nine hotels would remain open until March 2025. A spokesperson for the tourism department stated, “We respect the court’s decision and are committed to working on a comprehensive plan to address the HPTDC’s financial challenges. Our priority is to ensure that tourism remains a key growth driver for the state while protecting the corporation’s interests.”
