http://travel.timesonline.co.uk/article/0,,10295-1569296,00.html

News and Comment

April 16, 2005

The Times

No room at India's inns
Ginny McGrath and Tom Chesshyre report on a hotel shortage

Booming tourism on the back of new flights to India is causing a shortage of 
accommodation � leaving many independent travellers struggling to find a bed 
for the night on backpacking trips, and reducing options for those on package 
holidays.

Tour operators say they are concerned that the country is not keeping up with 
growing tourist demand. Visitor numbers to India have shot up by a million 
over the past two years to 3.4 million last year. This figure is expected to 
reach 4.5 million by 2007, boosted by increased air services to the country.

This week the UK and Indian governments agreed to a doubling of direct flights 
between the countries by the end of next year. At the moment there are 40 
weekly direct flights allowed under a bilateral agreement, but this will 
increase to at least 84, with further routes likely.

Virgin Atlantic, British Airways and bmi have all recently announced new 
routes, increasing the capacity to Bombay, Calcutta, Delhi and Bangalore. 
Further services are expected to be announced soon for Hyderabad, the 
country's fifth- largest city, and to Goa and Kerala.

A BA spokeswoman said: "This week's deal is great news for consumers. It will 
mean fewer transfers via the likes of Frankfurt and Dubai."

But Linda Pedler of Kuoni fears that the country is desperately short of 
hotels: "We have already seen a boom to India in the past 12 months, which is 
great for us; although there are capacity problems, particularly in Delhi, 
which is a real bottleneck. There are new hotels in the pipeline but these 
aren't going to be ready for a while."

Her concerns are backed by Judy Slatyer, chief executive of Lonely Planet, the 
guidebook publisher, whose books are popular with backpackers in India. She 
said: "A lot of our travellers come back from India saying that hotels were 
full � that India was full."

Tourist authorities in India have recognised the problem. Amitabh Kany, joint 
secretary of India's Ministry of Tourism and Culture, said: "We are working to 
bring 100,000 more hotel rooms in four years and there is a huge capacity in 
unregistered guesthouses."

Many tourist operators are also worried about whether airports will be able to 
cope as flights increase. BA has already announced that it will have new 
flights to Bangalore from October, for which flight prices have yet to be set �
 its Calcutta returns start at �380 � while Virgin began flights to Bombay 
last month from �531. And bmi is beginning flights to Bombay on May 14, 
starting at �391.

P.R.S.Oberoi, chairman of the Oberoi Group, the luxury Indian hotel company, 
said: "I foresee a severe problem in the next two years at our airports 
because they simply cannot take the traffic."

Details: Virgin (0870 5747747, www.virgin.com/atlantic), BA (0870 8509850, 
www.ba.com), bmi (0870 6070555, www.flybmi.com), India's Department of Tourism 
(www.incredibleindia.org). Kuoni (01306 744444, www.kuoni.co.uk), Oberoi 
(00800 12340101, www.oberoihotels.com).

--
Cheers,

Gabe Menezes.
London, England

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