India's No. 1 Hospitality Business Weekly Issue dated - 25th July 2005
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Tsunami Ghosts Still Haunt Kerala Hoteliers

Vyas Sivanand - Mumbai

Even though tourism and hospitality performances have picked up in the Tsunami-affected areas in other countries, Kerala is still experiencing undercurrents in hospitality business on account of the Tsunami.

Prior to this catastrophe, in the off-season, hotels in Kerala recorded a steady performance of 40-50 per cent occupancy. This year however, occupancies have dropped down to 30 per cent and the hoteliers cite Tsunami as the prime reason. According to Dr N Madhu M S, managing director, Cherai Beach Resort, Cochin, “We are witnessing a decline in tourist arrivals. Earlier in the off-period we used to receive a considerable number of tourists from North India, this however has declined by 10 per cent.”

Tsunami has created a psychological barrier among travellers and many are opting for destinations like Malaysia, Singapore, Bangkok and even Sri Lanka (which was amongst the most affected areas). “These places have been promoted really well post tsunami, unlike India. More importantly these destinations are much cheaper than India. In Kerala, even though we have reduced our tariff drastically in the off-season, we are still not able to pull in the major chunk of Indians travelling abroad,” expressed Sreekanth Manikoth, general manager, Riviera Suites.

While the Tsunami ghosts continue to haunt stand-alone hoteliers in Kerala, the larger chains like the Taj and Oberoi have managed to exorcise these ghosts. According to a spokesperson from the Trident Hilton, Cochin, “We have not experienced a drop in occupancy figures though overall Cochin has seen a dip when compared to last year.” Similarly, a spokesperson from the Taj Garden Retreat, Kumarakom stated, “While our occupancies have not been affected, the ARR has definitely come down. We were at an ARR of Rs 4500 last year, but this year we are at Rs 4100."

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