Date:03/05/2007 URL: http://www.thehindubusinessline.com/2007/05/03/stories/2007050300851300.htm

Back Bangalore hotels witnessing demand

Anjana Chandramouly

1,000 rooms will be added by 2009

Bangalore May 2 The hospitality industry in Bangalore will continue to witness the high demand trend in the next three years, said Mr P.K. Mohankumar, Area Director - Bangalore, and General Manager, The Taj West End.

About 700-800 rooms were added in the last couple of years, he said, adding that about 800-1,000 rooms will be added by 2009, coinciding with the opening of the new international airport at Devanahalli.

Sources say that among the new hotels coming up in Bangalore, four would be from the Taj group, belonging to the mid-size, five-star business and luxury hotel category.

Tariff Rationalisation

With more rooms available in the city, Mr Mohankumar expects rationalisation in tariff by about 25-30 per cent. According to him, 2004 and 2005 were the best years for the city, as regards the hospitality sector; correction started happening in 2006 and 2007, he said. "Since 2005-06, Bangalore has been plateauing; Chennai and Hyderabad are taking off."

"The completion of the new international airport and Metro projects, and the continuation of the domestic airport would make Bangalore a megapolis," he said.

These would throw up more demand for better infrastructure like hotel rooms and in turn generate employment opportunities, he added. Infrastructure development in the city will lead to a quantum leap in the city's growth. According to him, finding land at a reasonable cost would be a big challenge.

Hotel industry is not tourism anymore, he said. "Clear demarcation must be made between business and leisure hotels." According to him, it is the business and luxury hotels that bring in more revenues to the country's exchequer and not the leisure hotels. The former should be considered part of the infrastructure.

"I would advocate a complete new look at business and luxury hotels." Moreover, the Government should take a re-look at the star categorisation, as it is not relevant to today's scenario, Mr Mohankumar said.