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Shimla: Shimla, a tourist hotspot in India, has recorded a sharp decline in hotel occupancy on New Year’s Eve, recording only 50-60%, the lowest in the last four decades. This unexpected decline, coming as a surprise considering last year’s occupancy rate of over 80%, has left the tourism sector in a state of shock.
Expectations of a ‘White New Year’ with picturesque snowfall were not fulfilled. Contrary to weather predictions, no snowfall occurred, which may have caused hotel bookings to be lower than expected. Despite the attraction of the winter carnival on Mall Road and Ridge, illuminated with festive lights and showcasing rich cultural programmes, the expected increase in tourist inflows did not translate into hotel room reservations.
Shimla Hotel and Tourism Stakeholders Association president MK Seth and vice-president Prince Kukreja expressed surprise at the decline in occupancy despite favorable conditions. Still, he expects a late surge in bookings.
Despite Chief Minister Sukhwinder Singh Sukhu’s instructions to welcome tourists and ensure smooth traffic flow as well as relax rules for partygoers, the desired outcome remained elusive.
The tourism industry is grappling with the problem of unregistered accommodation attracting tourists, which is affecting the business of legitimate hotels and homestays. The trend of tourists preferring private parties or secluded accommodation outside the city center was also identified as a contributing factor. Although around 7,600 tourist vehicles entered Shimla through the Shoghi Barrier, the total tourist numbers were lower than expected.
Another concern raised was the negative publicity about traffic jams on social media and some news channels, potentially influencing tourists to choose alternative destinations. Despite this setback, government-owned hotels elsewhere in Himachal Pradesh have seen an improvement in occupancy, moving closer to full capacity after falling below 15% during the monsoon season. Since traffic congestion is expected on New Year’s Eve due to ongoing road repairs and increased tourist arrivals, it remains to be seen how these factors will play out in the near future.
