Published on : Tuesday, August 21, 2018
Odisha tourism department is engaging key state-based hoteliers to tap the franchise business model with flagship brands like Hilton Group, Sheraton Hotels and Resorts, Radisson Hotels, Taj Group and Starwood.
Recently, the state tourism department of Odisha impressed upon state-based hospitality majors the need to collaborate with flagship hotel brands.
Odisha has a dismal record in attracting international brands and collaborations secured by a local hotelier could overcome this handicap. “The key reason why we are unable to pull high-end international tourists is the lack of enough five-star hotels. We have suggested to local hoteliers to explore collaborations with hospitality brands of international repute like Radisson or Novotel so that they can get franchisees to operate,” a government official said. There could be two models for a tie-up — marketing and management franchisees. Debashis Patnaik, director, The Crown, a Bhubaneswar-based hotel, also expressed his willingness for collaborating with international brands.
Odisha has about 13 star-category hotels with an inventory of 1,200 rooms. Out of the total star-category hotels, only two properties — Mayfair Lagoon and Hotel Trident — are in the five-star deluxe category and the balance are below them.
To accommodate the increased flow of tourists by 2025, Odisha needs to ramp up its hotel room capacity three-fold at an estimated investment of Rs 14.5 billion through public-private participation, said a study report.
Odisha has 9,791 tourists per category hotel room, which is higher than the national average of 7,357, according to India Tourism Statistics. This implies that the state has a dearth of category hotel rooms.
During 2013-14, the net flow of tourist spending has grown by 117 per cent, contributed majorly by domestic tourists (growth of 120 per cent), while the number of tourists has grown by only eight per cent. This implies increased length of stay, higher spending per tourist arrivals and substantiates the demand for luxury and category hotel rooms in the state.