Mandi (Munish Sood)
The Himachal Pradesh Tourism Development Corporation (HPTDC) is facing a major financial crisis, with 19 of its hotels struggling for survival due to mounting unpaid dues.
According to information gathered under the RTI Act, various government departments alone owe over Rs 1.5 crore the Himachal Pradesh Tourism Development Corporation, while private entities have yet to clear Rs 20 lakh, pushing these establishments to the brink of closure.
The Himachal Pradesh High Court’s recent crackdown on loss-making HPTDC hotels has further exposed the financial mismanagement, revealing how unpaid bills for official events and government hospitality had left these properties in crippling debt.
Even prestigious establishments like Himachal Bhawan and Himachal Sadan in Delhi have been caught in this debt trap, raising serious concerns about the state’s handling of tourism infrastructure.
Unpaid dues despite business worth crores
HPTDC hotels primarily cater to government guests and official events, yet delayed payments from state departments have created a financial web so intricate that even after generating crores in revenue, these hotels remain on the verge of insolvency.
Despite their crucial role in the state’s tourism sector, these government-run establishments are struggling to keep their operations afloat.
High Court’s tough stand leads to partial recovery
Acting on the financial distress of these hotels, the Himachal Pradesh High Court took strict notice of the issue, leading to the recovery of Rs 63.5 lakh in outstanding dues between November 17 and December 1, 2024. Out of this Rs 50.10 lakh was recovered from government departments and Rs 13.29 lakh was settled by private entities.
However, this is only a fraction of the total Rs 2.25 crore debt, and many hotels remain trapped in a financial deadlock.
District-wise breakdown of hotels and debt
Several major tourism properties across Himachal Pradesh are struggling with unpaid dues from the government and private sector:
- Hotel Holiday Home (Shimla) – ₹36.19 lakh (Govt.) + ₹3.84 lakh (Private)
- Hotel Peterhoff (Shimla) – ₹24.88 lakh (Govt.) + ₹49,998 (Private)
- Himachal Bhawan (Delhi) – ₹6.10 lakh (Govt.) + ₹68,907 (Private)
- Himachal Sadan (Delhi) – ₹1.61 lakh (Govt.)
- Himachal Bhawan (Chandigarh) – ₹70,898 (Govt.) + ₹2.42 lakh (Private)
- Manali HPTDC hotel – ₹9.30 lakh (Govt.)
- Dharamshala & Bhagsu hotels – ₹30.44 lakh (Govt.) + ₹46,631 (Private)
- Chamba & Dalhousie hotels – ₹14.38 lakh (Govt.) + ₹1.48 lakh (Private)
Other major tourism hotels, including in Kullu, Palampur, Jwalaji, Bilaspur, Rampur, Chail, Barog, Paonta Sahib and Parwanoo are also caught in the same financial mess.
RTI activist questions government’s accountability
Amid the deepening financial crisis, RTI activist Devashish Bhattacharya has written to Himachal Pradesh Chief Secretary Prabodh Saxena, demanding a detailed report on what actions had been taken to clear outstanding dues.
In an RTI revelation, Bhattacharya pointed out that it was the state government itself that had financially crippled its own tourism corporation as the majority of unpaid dues belonged to state departments. He has formally requested an action taken report (ATR) to clarify what steps had been taken to settle these payments and ensure the financial stability of these hotels.
