Thursday, September 17, 2009

Delhi Short of 6,500 rooms for Games

With Deadline 6 Months Away, Only 41% Ready

On a day when Commonwealth Games Organizing Committee chief Suresh Kalmadi claimed India would stage ‘‘a great Games’’, a review conducted by the tourism ministry reveals a different reality at least as far as availability of hotel accommodation during the event is concerned.

Only 3,952 of the ‘confirmed’ 9,500 rooms, a mere 41% are currently ready with just about six months to go for the March 2010 deadline to expire. That’s not all. Of the 2,194 ‘likely’ rooms expected to come up in time for the October 2010 event, only 50% will be ready, according to the ministry’s review.

The ‘confirmed’ rooms were certain to come up in time for the event, while the ‘likely’ rooms were those expected to be ready. So, as of now, there’s a shortfall of some 6,500 rooms. How much of this would be made up by the time the event is held is anybody’s guess. The deadline for completion of these rooms had been fixed for March 2010 to give time for guests to make bookings etc.

The ministry had estimated a demand for 40,000 rooms. Of this, 10,150 were already available, with plans to construct at least 10,000 more, with the rest to be made up from guesthouses and other sources.


Rooms for Games: DDA has completed just 18 % of target

A combination of circumstances, including the economic slump as well as the multiple clearances needed for the construction, have slowed up construction of hotel rooms for the Commonwealth Games Progress made by land owning agencies like DDA in facilitating construction of new hotel rooms too has been distressing. DDA has completed just 18% of its target 403 out of 2,204 rooms. Haryana has done a tad better with 2,716 completed rooms as compared to 5,728 expected. Uttar Pradesh has the best track record so far, but this too is just about 53%, 833 of out 1,568 rooms of its share.

Others have virtually done nothing. ‘‘Some agencies like DMRC, DIAL and Railways that had promised to get hotels constructed were unable to do so because of several compulsions,’’ said tourism secretary Sujit Banerjee. The poor state of hotel infrastructure only underlines the concerns over how Delhi would gear up to the massive challenge of hosting the Games.

A war of words has broken out between the OC and the Commonwealth Games Federation chief Mike Fennell over the delay. This led to some hurried meetings between sports minister M S Gill, Delhi chief minister Sheila Dikshit and Kalmadi. While Kalmadi has claimed that both the sporting and other infrastructure would not miss deadlines, the current reviews do not provide for any comfort.

The hospitality sector is considered a high risk investment and there is a relatively long period before a star hotel manages to break even. With agencies like DMRC, DIAL and Railways unable to construct hotels in time for the Games, the government is now banking heavily on bed and breakfast establishments (3,000), guesthouses (11,083 rooms) and 5,500 DDA flats in Vasant Kunj and Jasola.

DIAL’s plan to construct hotels to generate revenue ran into trouble over two years ago. To cover the revenue gap of the hospitality district, people flying out of Delhi airport have to pay steep user charges so that airport modernization can be completed in time. DMRC had anticipated that it would build two hotels but it’s still awaiting clearances for its Dwarka project. The Railways’ plan to construct hotels also ran into rough weather due to the downturn.

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