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70 CHAPTER 4 ENTREPRENEURSHIP IN HOSPITALITY SECTOR 4.1 POLICIES FOR ENTREPRENEURSHIP Sound planning and policy initiative is the backbone for successful entrepreneurship development in any front and hospitality sector is not an exception in this regard. The experience of hospitality sector of many areas of the world has demonstrated that, on a long term basis, the planned approach to developing this service sector can bring benefit without significant problems, and maintain satisfaction level of the respective market segment. The scenario of entrepreneurship in the hospitality in India vis-à-vis Assam is in fact the result of policy initiatives undertaken over the years. The forgoing discussion critically highlights such policy initiatives associated with hospitality sector. 4.1.1 Industrial Policy 4.1.1.1 Central initiative When India attained Independence in 1947, the national consensus was in favour of rapid industrialization of the economy which was seen not only as the key to economic development but also to economic sovereignty. In the subsequent years, India's Industrial Policy evolved through successive Industrial Policy Resolutions and Industrial Policy Statements. Specific priorities for industrial development were also laid down in the successive Five Year Plans. The hospitality industry totally depends on the growth of primary and secondary sectors, i.e., they are interdependent. When there is a growth in the primary and secondary sector, the hospitality sector also grows. Thus, there lies a relation between the general industrial policies, resultant industrial development and the growth of hospitality sector, which itself attained industrial status in subsequent planning initiatives. There are different industrial policies announced by the Govt. of India since 1948. The first Industrial Policy Resolution announced in 1948 laid down broad contours of the strategy of industrial development. It made an important distinction among industries to be kept under the exclusive ownership of government, i.e., the public sector, those reserved for private sector and the joint sector. Subsequently, the

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CHAPTER 4

ENTREPRENEURSHIP IN HOSPITALITY SECTOR

4.1 POLICIES FOR ENTREPRENEURSHIP

Sound planning and policy initiative is the backbone for successful

entrepreneurship development in any front and hospitality sector is not an exception in

this regard. The experience of hospitality sector of many areas of the world has

demonstrated that, on a long term basis, the planned approach to developing this service

sector can bring benefit without significant problems, and maintain satisfaction level of

the respective market segment. The scenario of entrepreneurship in the hospitality in

India vis-à-vis Assam is in fact the result of policy initiatives undertaken over the years.

The forgoing discussion critically highlights such policy initiatives associated with

hospitality sector.

4.1.1 Industrial Policy

4.1.1.1 Central initiative

When India attained Independence in 1947, the national consensus was in favour

of rapid industrialization of the economy which was seen not only as the key to

economic development but also to economic sovereignty. In the subsequent years,

India's Industrial Policy evolved through successive Industrial Policy Resolutions and

Industrial Policy Statements. Specific priorities for industrial development were also

laid down in the successive Five Year Plans. The hospitality industry totally depends

on the growth of primary and secondary sectors, i.e., they are interdependent. When

there is a growth in the primary and secondary sector, the hospitality sector also grows.

Thus, there lies a relation between the general industrial policies, resultant industrial

development and the growth of hospitality sector, which itself attained industrial status

in subsequent planning initiatives.

There are different industrial policies announced by the Govt. of India since

1948. The first Industrial Policy Resolution announced in 1948 laid down broad

contours of the strategy of industrial development. It made an important distinction

among industries to be kept under the exclusive ownership of government, i.e., the

public sector, those reserved for private sector and the joint sector. Subsequently, the

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71

Indian Constitution was adopted in January 1950, the Planning Commission was

constituted in March 1950 and the Industrial Department and Regulation Act (IDR Act)

was enacted in 1951 with the objective of empowering the government to take necessary

steps to regulate the pattern of industrial development through licensing. The Industrial

Policy Resolution - 1956 suggested that emphasis on heavy industries would lead the

economy towards a long term higher growth path. The resolution widened the scope of

the public sector. The objective was to accelerate economic growth and boost the

process of industrialization as a means to achieving a socialistic pattern of society. The

Industrial Policy Resolution - 1956 classified industries into three categories. The first

category comprised 17 industries. These included inter alia, railways, air transport,

arms and ammunition, iron and steel and atomic energy. The second category comprised

12 industries, which were envisaged to be progressively state owned but private sector

was expected to supplement the efforts of the state. The third category contained all the

remaining industries and it was expected that private sector would initiate development

of these industries but they would remain open for the state as well. Another objective

of the Industrial Policy Resolution – 1956 was the removal of regional disparities

through development of regions with low industrial base. And hence adequate

infrastructure for industrial development of such regions was duly emphasized.

The Industrial Licensing Policy Inquiry Committee (Dutt Committee),

constituted in 1967, recommended that larger industrial houses should be given licenses

only for setting up industry in core and heavy investment sectors, thereby necessitating

reorientation of industrial licensing policy. In 1969, the Monopolies and Restrictive

Trade Practices (MRTP) Act was introduced to enable the Government to effectively

control concentration of economic power. The new Industrial Licensing Policy of 1970

classified industries into four categories. First category, termed as ‘Core Sector’,

consisted of basic, critical and strategic industries. Second category termed as ‘Heavy

Investment Sector’, comprised projects involving investment of more than Rs.50

million. The third category, the ‘Middle Sector’ consisted of projects with investment in

the range of Rs.10 million to Rs.50 million. The fourth category was ‘De licensed

Sector’, in which investment was less than Rs.10 million and was exempted from

licensing requirements. The industrial licensing policy of 1970 confined the role of large

business houses and foreign companies to the core, heavy and export oriented sectors.

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With a view to prevent excessive concentration of industrial activity in the large

industrial houses, the Industrial Policy Statement – 1973 gave preference to small and

medium entrepreneurs over the large houses and foreign companies in setting up of new

capacity, particularly in the production of mass consumption goods. New undertakings

of up to Rs.10 million by way of fixed assets were exempted from licensing

requirements for substantial expansion of assets. This exemption was not allowed to

monopolies and restrictive trade practices (MRTP) companies, foreign companies and

existing licensed or registered undertakings having fixed assets of Rs.50 million and

above.

The Industrial Policy Statement - 1977, emphasized decentralization of industrial

sector with increased role for small scale, tiny and cottage industries. It also provided

for close interaction between industrial and agricultural sectors. Highest priority was

accorded to power generation and transmission. According to the policy, the foreign

companies that diluted their foreign equity up to 40 percent under Foreign Exchange

Regulation Act (FERA) 1973 were to be treated at par with the Indian companies. The

industrial Policy Statement of 1980 placed accent on promotion of competition in the

domestic market, technological upgradation and modernization of industries. Some of

the socio-economic objectives spelt out in the Statement were i) optimum utilization of

installed capacity, ii) higher productivity, iii) higher employment levels, iv) removal of

regional disparities, v) strengthening of agricultural base, vi) promotion of export

oriented industries and vi) consumer protection against high prices and poor quality.

Policy measures were announced to revive the efficiency of public sector undertakings

(PSUs) by developing the management cadres in functional fields viz., operations,

finance, marketing and information system.

The Industrial Policy Statement- 1991, states that “the Government will

continue to pursue a sound policy framework encompassing encouragement of

entrepreneurship, development of indigenous technology through investment in research

and development, bringing in new technology, dismantling of the regulatory system,

development of the capital markets and increased competitiveness for the benefit of

common man". The objective of the Industrial Policy Statement - 1991 was to maintain

sustained growth in productivity, enhance gainful employment and achieve optimal

utilization of human resources, to attain international competitiveness, and to transform

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India into a major partner and player in the global arena. The focus of the policy was to

unshackle the Indian industry from bureaucratic controls.

Promotion of Foreign Direct Investment (FDI) has been an integral part of

India’s economic policy. The Government has ensured a liberal and transparent foreign

investment regime where most activities are opened to foreign investment on automatic

route without any limit on the extent of foreign ownership. FDI up to 100 percent has

also been allowed under automatic route for most manufacturing activities in Special

Economic Zones (SEZs).

Though various industrial policies were formulated by the government of India

in the successive years for the economic development of the country giving different

incentives to the entrepreneurs, but these policies of government of India did not help

much for the industrialization of North Eastern Region. The entrepreneurs were not

willing to invest (specially the outsiders) because of its geographical location and its

insurgency problems and hospitality sector is also not an exception in this regard.

4.1.1.2 Industrial policy for north east India

Though through industrial policies of Government of India tried to mitigate the

regional imbalances of the country but it could not succeed in the north east for one or

other reasons. Realizing this, the Government of India formulated North-East Industrial

Policy in December 1997 to mitigate regional imbalances for promoting industries in

North Eastern Region giving incentives and subsidies under various schemes to the

entrepreneurs. In December 1997, the Government of India announced a separate

Industrial Policy for the North Eastern Region. The major features included providing

incentives for the development of growth centers and IIDCs. It also included transport

subsidies, attractive fiscal incentives for the establishment of new industrial units and

substantial expansion of the existing units. This policy was replaced by the North East

Industrial and Investment Promotion Policy, 2007 (NEIIP).

According to the North East Industrial & Investment Promotion Policy

(NEIIPP), 2007, the Central Government has approved a package of fiscal incentives

and other concessions for the North East Region which would be valid for 10 years. The

highlights of the policy are:

• Total Tax Free Zone, for units located anywhere in the North East.

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• Central Excise benefits available for goods.

• Transport Subsidy for both raw materials and finished products to and from the

region.

• 30% Capital Investment Subsidy for new and expansion of existing units without

any limit.

• Working Capital Interest Subsidy @3 percent on loan for industrial units.

• Comprehensive Insurance Scheme for industrial units where 100 percent premium

would be borne by the Government of India.

4.1.1.3 State industrial policy

The Government of Assam has also given a serious thought for developing

industries realizing the goal of economic development which cannot be attained until

and unless there is industrial development in the state. With this mission the

Government of Assam has formulated first industrial policy in the year 1969 (8th

March

1969) to encourage investment in the state from outside the state (including India and

foreign countries) as well as from local entrepreneurs in the same line with the industrial

policy of Government of India. This policy encouraged local entrepreneurs to take up

industrial ventures. It proposed to acquire land for the entrepreneurs in different parts of

the state with facilities of water, power and roads. Though policies were formulated by

the Government of Assam, no emphasis was laid for tourism infrastructural

development although this industry has been gradually acting as a catalyst for economic

development of the state. Therefore the hospitality industry of the state experienced a

long phase of stagnation.

In 1986, a new industrial policy came up which identified 14 ‘thrust areas’ for

industrial development of the state. These include balanced regional development

through rapid promotion of Khadi and village industries, tiny and small and ancillary

industries. The Industrial Policy 1991 emphasized rapid and sustained resource based

industrialization to strengthen the state’s economy and create employment

opportunities. Apart from the above policies, the Government of Assam has framed

Industrial Policies in the year 1997, 2003 and 2008. The aims and objectives of the

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Assam Industrial Policy, 2008 are to: (i) generate economic development by

accelerating the process of industrialization; (ii) generate employment and increase

income by encouraging the establishment of micro enterprises; (iii) increase the share of

the Industrial sector in the State Domestic Product (SDP); (iv) make Nature –

Economics Centric Development and (v) to make agro and rural area linked industrial

investment as focused programme. Besides, the State Government would endeavor to

encourage youths of the state, particularly the women entrepreneurs to set up industries,

encourage helping increase exports and attracting Foreign Direct Investment (FDI)

particularly from NRIs.

The aims and objectives will be endeavored to be achieved by following suitable

and appropriate strategies like creation of quality infrastructure, development of

clusters, encouraging investment by fiscal incentives, allowing tax concessions to attract

investment, facilitating access to market, facilitating mega investment, simplifying the

government procedures, using an industry friendly administration, creating conducive

atmosphere to induce investment.

Fiscal incentives and government subsidies are also allowed for the rapid

industrialization of the state through the policy.

a) Interest subsidy will be provided to Micro industrial units @30 percent of the amount

of interest paid on term loan to Bank/Financial Institutions for a period of 5 years

from the date of commercial production subject to a ceiling of Rs. 1.00 lakhs per

unit/year.

b) Power subsidy will be provided to eligible units on power tariff paid by the unit on

actual units consumed for a period of 5 years from the date of commercial production

subject to the ceiling given below:

Connected load Rate of subsidy Ceiling of subsidy per annum

Up to 1.0MW 30% Rs. 10.00 lakhs

Above 1.0 MW 25% Rs. 25.00 lakhs

c) The fees payable for obtaining BIS/ISO/FPO/AGMARK and fees payable for getting

the technical know-how from recognized research laboratory /institutions like

CFTRI, CIPET etc. by eligible units will be subsidized to the extent of 50 percent

subject to a ceiling of rupees one lakh per unit.

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d) 25 percent of the cost payable to State Power Distribution Company for drawal of

power line to the premises of the unit including the cost of transformer will be

subsidized to Micro and Small industrial units subject to a ceiling of Rs. 10 lakhs per

unit. This subsidy shall be available only once to a unit.

For promoting industrial growth in the region Government of Assam has

provided tax incentives for the different units. All eligible units, which manufacture

goods in Assam, will be entitled to exemption of 99 percent of the tax payable under the

Assam Value Added Tax Act, 2003 and the Central Sales Tax Act, 1956 subject to the

limit mentioned below. Special incentives are also declared by the government for

revival of sick units.

Category Micro Small Medium and Large

New

Seven years, subject to

maximum of 200% of fixed

capital investment.

Seven years, subject to

maximum of 150% of fixed

capital investment.

Seven years, subject

to maximum of 100% of fixed capital

investment.

Substantial Expansion

Seven years, subject to

maximum of 150% of additional fixed capital

investment.

Seven years,

subject to

maximum of

100% of

additional fixed

capital

investment.

Seven years, subject

to maximum of 90%

of additional fixed

capital investment.

4.1.1.4 Tourism policy of the country

The Government of India though they were trying for economic

development in different sector but never gave a serious thought to the tourism sector

till end of 1970s. The Government of India in 1982 has presented its first Tourism

Policy. On retrospect, one could argue that the novelty of the subject, its low priority

and the belief in its potential as a social engineering tool (in keeping with Indian public

ideology at that time) contributed to a rather simplistic piece of work. Subsequently,

when the government realized that Tourism Sector is one of the potential instruments

for earning foreign exchange, employment generation and discouraging terrorism

activities etc., it prompt the government in 2002 to present an updated policy document

(www.wikipedia.org). For this, the tourism sectors was given various incentives to the

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entrepreneurs engaged in building tourism infrastructure like hotel, lodges, restaurants,

eating joints, transport etc and encourage local entrepreneurs to take up such activities.

The main objective of the National Tourism Policy, 2002 is to promote

sustainable tourism as a means of economic growth, social integration, and chance

employment potential and to promote the image of India abroad as a country with a

glorious past, a vibrant present and a bright future. The broad aims of the National

Policy can be highlighted as:

i) Promotion of tourism as a major engine of economic growth.

ii) Harness the direct and multiplier effects of tourism for employment generation,

economic development and providing impetus to rural tourism.

iii) Focus on domestic tourism as a major driver of tourist growth.

iv) Position India as a global brand to take advantage of the burgeoning global

travel and trade and the vast untapped potential of India as a destination.

v) Acknowledge the critical role of private sector with government working as a

pro-active facilitator and catalyst.

vi) Create and develop integrated tourism circuits based on India’s’ unique

civilization, heritage and culture in partnership with states, private sector and

other agencies.

vii) Ensure that the tourist to India gets physically invigorated, mentally

rejuvenated, culturally enriched, spiritually elevated and “feel India from

within”.

The policy document takes into consideration seven key areas that will provide

the thrust to tourism development. These are Swagat (welcome), Soochana

(information), Suvidha (facilitation), Suraksha (safety), Sahyog (co-operation),

Samrachana (infrastructure development) and Safai (cleanliness). One of the major

objectives is the preservation and protection of natural resources and environment to

achieve sustainable development. To strengthen India’s socio-cultural structure, the

tourism industry in India needs to be properly planned, developed and managed at all

levels of government in partnership with the private sector.

Having recognized the hotel industry as a ‘priority industry’, which needs

further expansion of hotel accommodation, the Government of India has now come out

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with a series of schemes to aid the hotel industry under which the approved hotels

would be entitled to the following incentives and concessions. Of late, the Government

has realized that suitable incentives and concessions should be made available to

encourage hotel entrepreneurs of the private sector to invest. On the basis of the

recommendations of National Committee on Tourism of Government of India, the

Planning Commission has devised a package of schemes including monetary incentives,

fiscal incentives and operational input incentives.

(i) Tax Holidays

Subject to the fulfillment of the conditions prescribed in this regard under

section 80-1 of the Income Tax Act, in the case of approved hotels which started

functioning after 31.3.81 but before 1.4.1990, 25 percent of the profits and gains derived

by a Indian company from the hotel business are exempted from income tax for a period

of eight years. All tourist enterprises such as hotels, tour operators, travel agent should

be extended the benefits of section 80 HHC of the Income Tax Act. These benefits

should be linked with foreign exchange earnings. 50 percent of the income attributable

to the foreign exchange earning of hotels etc., should be allowed deduction straightway.

For the remaining 50 percent the benefit of tax exemption should be available to the

extent the income is reinvested in tourism industries.

(ii) Depreciation

Under Appendix-I of the Income Tax Rules, 1962 buildings used as hotels are

eligible or depreciation at the rate of 20 percent with effect from 2.4.1987 (Assessment

year 1988-89). In respect of furniture and fittings used in hotels, a higher rate of

depreciation of 15 percent has been provided under item II (2) of Appendix I of the

Income Tax Rules, 1962 as against the general rate of 10 percent.

(iii) Hotels set up in Backward Areas

Under section 80-HH of the Income Tax Act, 20 percent of the profits and gains

derived from the business of hotels set up in specified backward areas is deductible

from the taxable income for a period of 10 years, subject to certain conditions. There is

a provision of securing central subsidy for industries set up in selected backward

districts/areas. With effect from 1.1.1977, approved hotels set up in specified backward

districts/areas having tourism potential are eligible for the grant of Central Investment

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Subsidy under the Central Outright Grant or Scheme 1971. The level of subsidy was 25

percent in case of ‘A’ category districts, 20 percent in case of ‘B’ category districts and

15 percent in case of ‘C’ category. But the present level of subsidy is uniformly

available at 25 percent of the cost of the project or Rs. 1.00 crore whichever is less.

(iv) Land

Each major city has to have a master plan earmarking hotels sites. Since most

major cities have shortage of land, the land use/zoning laws should allow hotels to be

built in suitable areas. Government land may be allotted on long term lease basis. The

annual lease rent as a percentage on the value of the bid should be on a graded scale as

(i) 5 Star - 8 percent per annum, (ii) 4 Star - 6 percent per annum, (iii) 3 Star - 4 percent

per annum and (iv) 2 Star - 2 percent per annum. In case of private land, capital gains

tax has been waived to make the land cheaper to the buyer. Plots of land being sold for

hotel construction is (a) exempted from chapter 37 (1) of the Income Tax Act and (b)

Exempted from the provision of the Urban Land Ceiling Act.

(v) Concessional Customs Duty

Custom Duty on items included in the notification of ministry dated 2.1.86 has

been reduced to the level as applicable to hotel projects, provided the goods imported

are required for construction of new hotels or for expansion and modernization of the

existing hotels. Waiving of Custom Duty on items like specialized machinery and

equipment required by the hotel industry helps to keep the project costs low.

(vi) Preferential Treatment for Essential Facilities

(a) The essential facilities like telephone, telex and LPG need to be provided to the

hotel industry on a priority basis.

(b) Beside, water, electricity need to be available at industrial rate.

(vii) Foreign Personnel Employment

Foreign chefs, cooks and others employed by hotels to provide ethnic food and

facilities may be treated as technicians and exempted from the payment of Income Tax

as in the case of other industries.

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(viii) Entertainment Tax

At present cultural and variety programmes are subject to Entertainment Tax.

Since it is essential on the part of a tourist, this tax should be abolished or made minimal

to enable the hotel to provide entertainment to foreign and domestic clienteles.

(ix) MRTP Act

Hotels are exempted from the purview of the MRTP (Monopolies and Restrictive

Trade Policy) Act.

Incentives to channelize investment into the tourism sector

(i) Institutional Loans

Long term loans repayable in 20 to 25 years with a moratorium period of 4-5

years would be granted for the construction of hotel. The amount of loan should cover

up to 80 percent of the total cost of the project and carry a low rate of interest. The

approved hotel projects are eligible for the grant of loan by the Industrial Finance

Corporation of India (IFCI) and also by other Central Financial Institutions. The IFCI

loan is eligible for an interest subsidy of 1 percent on Rs. 75 lakhs of the loan amount in

each case.

(ii) Interest Rebate

The approved 5-star hotels are entitled to rebate to the extent of 20 percent of the

interest payable by them on institutional loans during any year if their foreign exchange

earnings in the particular year exceed 50 percent of their total gross earnings. Approved

hotels of other star categories are entitled to this rebate if their foreign exchange earning

constitutes 25 percent or more of their total earning during the particular year, with a

floor interest of 10 percent annually against the normal rate of 14 percent. For giving

boost to medium priced hotel- accommodation both for domestic and international

tourists, the rate of subsidy is to be increased from 1 percent to 3 percent in case of 1-3

star category hotels. Besides, the liberal term of finance would also be made available

for renovation and modernization of facilities in exiting hotels.

(iii) Foreign Exchange Incentive Quota

Approved hotels are eligible for foreign exchange incentive quota which is

determined at 10 percent of their direct exchange earning. This quota is available to

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respective hotels for essential imports, overseas promotional tour, publicity

advertisement etc.

(iv) Grant for the Construction of Accommodation

Direct granting at the rate of 20 percent of the average cost per room is to be

given for the construction of hotel projects at various places of tourist interest other than

those at metropolitan cities like Delhi, Bombay, Calcutta and Madras.

(v) N.R.I. Investment

In view of the prevailing resources constraints, both in the public and private

sector, it is essential to tap all possible financing resources for investment in the hotel

industries. Hotels quality for investment by Non-Resident Indian in the equity capital up

to 100 percent as against the prevailing ceiling of 74 per percent subject to conditions

laid down by the Reserve Bank of India.

(vi) Exemption of Inter-corporate Dividend Income tax

At present inter-corporate tax is an important impediment to the establishment of

subsidiary hotel chains. The income of a company by way of dividends from a hotel

company is to fully exempt from income tax, such incentive need to be given for the

expansion of hotel chains which plays an important role in providing marketing and

quality standard in tourism industry of the country.

vi) Reinvested Profits-Exemption from Income Tax

Surplus generated out of profits of hotels and reinvested in tourism projects is to

be exempted from income tax.

vii) Shareholders’ Investment

To encourage equity participation in new hotel projects, the income tax relief

provided under section 80CC will prove as an incentive for investment in hotels. The

debt-equity ratio in tourism related projects like hotels is likely to be relaxed to 1:1.4 as

against 1:1.5 in 1987. Besides, the pressure on the balance of payment is causing serious

concern to the government. It is, therefore, considering wide-ranging measures to setup

up foreign exchange earnings in the years to come (Mohanty, 2008).

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4.1.1.5 Tourism policy of Assam – 2008

Assam is comparatively the largest economy among the states of the Northeast

region. It is also the relatively industrially advanced state in the Northeast India, because

of its comparative proximity to the rest of the neighbouring South-East Asian countries

and availability of infrastructure. Assam is India’s gateway to the Northeast as well as to

the neighboring countries of Myanmar, China, Bangladesh, Nepal and Bhutan,

providing a vital link for trade with the Southeast Asian countries. The state is rich in

natural resources such as natural oil and gas, rubber, tea, and minerals such as granite,

limestone and kaolin. Assam tea is a well recognized product, the world over. With its

pleasant climate and scenic landscape, Assam can be made a popular tourist destination.

The state offers visitors a variety of choices from world heritage sites to temples and

monuments. Yet for a variety of reasons this resources are unable to bring Assam in a

prominent position that it deserves. Thus with a thrust to tourism promotion and to chart

out bold new directions to tourism growth the State Tourism Policy has been

formulated in 2008 with the vision to manage its comparative advantage in tourism

resources and attractions in a sustainable and integrated manner to make Assam a major

national and international tourism destination so that tourism enriches the quality of life

and culture of the people and becomes an important catalyst for economic development

of state as well as the region.

The main objectives of the Tourism Policy 2008 are:

• To make tourism an important tool for socio economic development of the state

and place the tourism sector on a high priority in the economic development of

the state.

• To fully harness the tourism potential of the state in such a manner that it

becomes environmentally sustainable, socio culturally enriching and

economically beneficial to the people.

• To create awareness among the people of the state about the importance of

tourism and evolve suitable institutional arrangements for effective participation

of the people in promoting tourism, sharing the benefits and in developing a

tourism friendly environment.

• To improve the quality of the existing tourism products to meet the new and

emerging demands of tourists and to enable them to have unique experiences

that they look for.

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• To promote adequate and comprehensive development of infrastructure of

international standards.

• To devise pragmatic and long term human resource development programmes to

create capacity for the local people to take advantage of the opportunities offered

by tourism development.

• Encouragement to Public Private Partnership (PPP) for creating quality tourism

infrastructure and ensuring better management in tourism projects.

The different policies laid down by the government plays a pivotal role in the

development of a nation or a state. All the investments in the private sector, including

the hospitality sector depend on the existing policies of the government. Therefore the

policies of the government must be encouraging enough to attract the private investors.

Over the years, Government of India and Government of Assam have framed separate

industrial policies to attract the investors. Industrial Policies of Government of India

have helped many states to march to the path of progress in the field of industrial

development like Gujarat, Punjab, Maharashtra, etc. However, Assam has not been able

to prosper properly in the field of industrialization due to its geographical isolation and

decade long socio-political unrest as compared to Indian counterparts. Realizing this,

Government of India has formulated a separate North East Industrial Policy in 1997

which was replaced by North East Industrial and Investment Promotion Policy in 2007

for providing more benefits and incentives to the entrepreneurs of the North-Eastern

states of India. Apart from Industrial policies, Government of India has also formulated

tourism policies after realizing the potential of tourism sector and its contribution to the

economic growth of the nation in the year 1982 and 2002 and has identified certain

areas of the sector for investment incentive. These policies have been able to attract

investment in the tourism sector which has encouraged building hotels in India at

different functional levels. However, such policies of Government of India and Assam

did not reflect visible effect in Assam as the state is lagging behind the pace of overall

economic growth pattern of the country. With the gradual improvement of the overall

political vis-à-vis law and order situation in the state after 1990s, had a positive impact

on the development parameters of the economy of the state. Such changing situation

resulted in the growth of hotels and lodges in the state. Moreover, since 2000 onwards

increasing importance of Guwahati as regional hub of trade and commerce, and prospect

of this node in the light of the proposed ‘Look East’ policy opened up new vistas and

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opportunities for the premium star category (especially 5-star and 4-star) hotels in

Guwahati.

Though government policy initiatives and incentives for hospitality sector is

gradually becoming accommodative to meet the regional needs, entrepreneurs’

unawareness for such support system is found to be a matter of great concern. Field

investigation in this regard reveals that out of the total 391 entrepreneurs of hotels and

lodges only 39 (10 percent) are aware of the policies and incentives of the government

and only 5 (1.3 percent) took the advantage of the same. For the rest 34 entrepreneurs,

the reason behind unwillingness to take the advantage of the benefit of the policies are

associated with apprehension of facing administrative harassment and hurdles.

4.2 INSTITUTIONAL SUPPORT FOR HOSPITALITY ENTREPRENEURS

A proper planning and regulatory mechanism is the pre-requisite for the

development of entrepreneurship. A nation cannot prosper economically if due

importance is not given for the growth of entrepreneurship backed by the liberal policies

of the government and setting up of institutions for its continuous support. The

developed countries like USA, Japan and UK have seen the path of economic

development through entrepreneurial activities. These countries attribute

entrepreneurship as the base for long term development. Thus, there is a need and

importance of setting up of institutions by the government, so that the entrepreneurs

during the process of setting up and in the long run do not face any hurdles and these

institutions are at help, as and when required. Thus, setting up of entrepreneurship

became easy and hassle free, and it becomes one stop shop for the whole process.

Keeping this in mind the Central Government has set up several institutions covering

vital aspects for enterprise, viz. project development, finance, training, marketing etc. so

that the entrepreneurs can set up their business in the ambit of legal framework of the

country and seek help at any time from these institutions. Likewise, Government of

Assam has also set up institutions in the same line of Central Government and

encouraging entrepreneur to take up entrepreneurship in small, medium and heavy

segment. Along with the banking sector, there are several institutions which are

constantly working for the development of the hospitality sector in Assam like Assam

Tourism Development Corporation (ATDC), Assam Small Industries Development

Corporation Limited (ASIDC), Assam financial Corporation (AFC), Assam Industrial

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Development Corporation (AIDC), Indian Institute of Entrepreneurship (IIE), North

Eastern Development Finance Corporation (NEDFi), etc.

4.2.1 Support at state level

4.2.1.1 Assam Small Industries Development Corporation Limited (ASIDC)

Assam Small Industries Development Corporation Ltd (ASIDC) was setup by

the Government of Assam and incorporated on March 27,1962 under the companies Act

1956 at the instance of all India Industries Board with a authorized capital of Rs.

7,00,00000 (seven crores) to cater to the required needs of small industries in Assam.

The company also undertakes a variety of activities for the benefit of entrepreneurs in

the small scale industry sector such as: (i) financial assistance, (ii) consultancy for

setting up of small Industries, (iii) marketing assistance, (iv) management assistance to

production unit, (v) aid, assist, counsel and finance any small scale industries with

capital, credit, means or resources and technical and managerial assistance for

prosecution and promotion of these industries in all respects, (vi) promote, establish

setup small industries in Assam and (v) provide training facilities to the entrepreneurs.

ASIDC Ltd is acting as a nodal agency for helping the entrepreneurs in small scale

industries sector, unveils new trends and encourages to take up new assignments or to

upgrade existing small scale industries unit.

Though, provisions seems to be rosy, field survey and group discussions held

with the concerned authority reveals that they do not have any record of financial aid or

training support to the hospitality entrepreneur; however they have organized many

entrepreneurship development prospect awareness mela (fair) from time to time, like

one held at Tinsukia on 6th and 7th of October 2010. However, lately realizing the

potentiality of the hospitality sector for development of entrepreneurship and its

employment prospects they have included hospitality as one of the key sector in the fair

and had a good response from the prospective entrepreneurs.

4.2.1.2 Assam Industrial Development Corporation Limited (AIDC)

Assam Industrial Development Corporation Ltd. was incorporated in the year

1965 under the company’s act 1956 with an authorized share capital of Rs. 100.00

crores with the main objectives of (i) identification and promotion of medium and large

industrial projects in Assam, (ii) implementation of the State Government packages of

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incentives for entrepreneurs, (iii) providing financial assistance, (iv) rehabilitation and

management of sick units, (v) providing technical, financial, managerial and

consultancy services of entrepreneurs, (vi) development of human resource and (vii)

providing infrastructural support etc.

Looking at the potentiality of the hospitality sector in Assam the AIDC has

started sanctioning of term loan to the hospitality sector since 1979 but stopped

sanctioning loan from 1999. So far, it has sanctioned a total of 20 loans for the

establishment of hotels and resorts (Table 4.1).

Table 4.1: Number of hospitality projects financed by AIDC

Year No. of hospitality project

financed

Amount (Rs.in

lakh)

1983 1 56.90

1985 4 268.71

1986 2 199.50

1987 2 121.26

1988 5 423.30

1989 2 124.46

1992 1 61.75

1993 1 71.50

1995 1 71.25

1996 1 67.50

Source: AIDC office, Guwahati, 2009-10

From the interaction with the officials of the AIDC it was found that the

response was very less from this sector and majority of the entrepreneurs are found to be

defaulters in terms of repaying loan. Therefore the organization has stopped sanctioning

loan to this sector.

4.2.1.3 Assam Financial Corporation Limited (AFC)

Assam Financial Corporation was setup by the Government of Assam under the

provision of the State Financial Corporation Act, 1951. Assam Financial Corporation is

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the premier financial institution engaged in promotion of small and medium scale

industries in the region with the objective of providing medium and long term credit to

industrial concern for achieving a balanced growth, to catalyze investment, generate

employment and widen the ownership base industry. Financial assistance to small and

medium enterprises are provided by the way of term loans, direct subscription to equity

debentures, guarantees, discounting of bills of exchange and seed capital assistance etc.

Assam Financial Corporation has sanctioned several loans for hotels, lodges,

resorts, restaurants, bakery and confectionary (Table 4.2). AFC has a scheme called

general scheme (service sector) for giving the loan to the hospitality entrepreneurs.

Under this scheme an entrepreneur can avail loan up to a maximum of 10 crores. For a

project, AFC sanction 60-65% and rest 30-35% should be the promoter’s contribution.

Table 4.2: Share of hospitality project over total project sanctioned by AFC

Year Total No. of

project

sanctioned

No. of hospitality project

sanctioned

% of hospitality

project over total

project sanctioned

2004-05 2318 33 1.42

2005-06 2028 27 1.33

2006-07 2150 22 1.02

2007-08 5767 00 0.00

2008-09 685 09 1.31

2009-10 593 12 2.02

2010-11 552 14 2.54

2011-12 524 15 2.86

Source: AFC, Guwahati office, 2011-12

The entrepreneurs for the hospitality sector is also entitled for government subsidies

under NEIIPP-07 for the hotel project of 2-star and above category. The subsidies can

be claimed by the entrepreneurs after classification of the hotel by the competent

authority through Directorate of Industries, Government of Assam. While processing for

loan a number of steps are followed by AFC from assessing the viability of the project,

security/mortgage, legal documentation to the disbursement of loans in installment, etc.

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AFC also allows moratorium period up to 18 months, depending upon the type of

project sanctioned. Within this period the promoter has to pay only the interest for the

loan disbursed. AFC has sanctioned a number of loans in general and to hospitality

entrepreneurs the corresponding share is quite unimpressive.

4.2.1.4 Assam Tourism Development Corporation Limited (ATDC)

The Government of Assam has formed a company named “Assam Tourism

Development Corporation Ltd.” on 9th June 1988 and registered under company’s act of

1956 with a share capital of Rs. 1,00,00,000/- (one crore) only. The corporation was

setup with the main objective of growth and development of tourism in Assam. Assam

Tourism Development Corporation is also engaged in executing several large, medium

and small tourism projects of central and state government for infrastructure building as

well as scheme for marketing and promotion of Assam tourism. ATDC is also acting as

a catalyst to intensify private sector investment and participation in management and

development of already setup projects and also for establishing new projects.

For the development of tourism, ATDC has also started a scheme called Chief

Minister’s Assam Bikas Yojana for educated unemployed youth of the state for

providing loan for tourist vehicles (small cars), hotels, lodges, restaurant, dhaba ,way

side amenities, etc. The scheme had started in the financial year 2008-2009. In this

scheme, the maximum subsidy given to the entrepreneur is 3 lakhs and minimum

subsidy given is 40 percent of the loan amount whichever is less. However, here too,

share of hospitality project is quite a few in numbers (Table 4.3).

Table 4.3: Share of hospitality project over total project sanctioned by ATDC

Year Total no. of

projects sanctioned

No. of hospitality project

sanctioned

Share of

hospitality

project (%)

2008-09 310 Nil 0.00

2009-10 and

2010-11 306 9 2.94

*The year 2009-10 and 2010-11 were combined for the delivery of projects

Source: ATDC Office, Guwahati. 2010-11

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4.2.2 Organizational support at regional level

4.2.2.1 North Eastern Development Finance Corporation Limited (NEDFi) North

Eastern Development Finance Corporation Ltd. (NEDFi) was incorporated under the

Company’s Act 1956 on August 9, 1995 with the main objective of economic

development of the North East having a registered office at Guwahati, Assam. NEDFi,

aimed at catalyzing the economic development of the North East of India by providing

credit and other facilities for promotion, expansion and modernization of industrial

enterprises in the North East Region of India. NEDFi promoted by IDBI, SIDBI, FCI,

ICICI, SBI, UTI, LICI, GIC and its subsidiaries as a public finance institutions with an

authorized capital of Rs. 500 crores. NEDFi delivers complete package deal to the

entrepreneurs from concept to commissioning.

NEDFi has several schemes for the entrepreneurs such as project finance,

equipment finance, working capital term loan, etc. NEDFi has also sanctioned several

loans for the establishment of hotels and resorts of 2-star and above category and are

allowed subsidy to the entrepreneurs as per NEIIPP 2007 (Table 4.4).

Table 4.4: Projects sanctioned by NEDFi for hospitality entrepreneurs in Assam

from the financial period 2005-06 to 2010-11

Year Total projects for

Assam

Hospitality

projects for

Assam

Share of

hospitality

projects (%)

2005-06 105 10 9.52

2006-07 116 7 6.03

2007-08 69 14 20.29

2008-09 80 12 15.00

2009-10 75 12 16.00

2010-11 76 6 7.89

Source : NEDFi Head office, Guwahati , 2010-11

4.2.3 Training institute of entrepreneurship

Indian Institute of Entrepreneurship (IIE) is an autonomous organization under

the Ministry of Small Scale Industries and Agro and Rural Industries, Government of

India. The Institute has started functioning from 1st April 1994 at Guwahati with the

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objective of creating an environment for entrepreneurship development by taking up

training, research and consultancy activities for promotion of entrepreneurship.

IIE organizes different types of training programmes. Some of the training

programmes they arranges are promotion of new entrepreneurs, growth of existing

entrepreneurs (for existing entrepreneurs in different functional areas of management

and development) and creation of environment for entrepreneurship (for personnel from

support organization). IIE organizes Entrepreneur’s Development Programmes on

regular basis for the promotion of entrepreneurs.

At the instance of Ministry of Micro, Small and Medium Enterprise, IIE has

started entrepreneurship skill development programmes for various sectors. Under this

scheme IIE has completed a total of 18 number of hospitality skill development

programmes facilitating development in the hospitality sector since financial year 2009-

10 and still continuing with the programmes. The hospitality courses which IIE has

started are hospitality and housekeeping management, cooking, cooking and baking,

baking and confectionary, training on hospitality and restaurant management, etc.

(Table 4.5).

Table 4.5: Number of beneficiaries from hospitality programmes of IIE

Year Total

programmes

Total

participants

Total hospitality

programmes and

% share

Number of beneficiaries

in hospitality sector and

% share

2009-10 125 2595 4 (3.2) 105 (4.05)

2010-11 220 4315 6 (2.7) 170 (3.94)

2011-12 271 4507 8 (2.9) 229 (5.08)

Source: IIE Guwahati, 2011-12

Duration of the courses ranges from 1 month to 3 months. There are 504

numbers of beneficiaries from these courses. The figures of hospitality training

programme and beneficiaries from the sector speak about a low key status of the sector

in the state.

4.2.4 Commercial banks

The banks offers personalized banking and financial solutions to the clients in

the retail and corporate banking arena through its large network of branches. There are

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nationalized bank, State Government undertaking banks and Co-operative banks etc.

Most of the banks have their own scheme to suit the needs of the entrepreneurs. An

investigation of their financial support to the hospitality sector in the capital city of

Guwahati reveals that State Bank of India, small and medium enterprise credit cell,

Silpukhuri, Guwahati branch has sanctioned an amount of 103.85 lakhs for 10 projects

as term loan to the hospitality entrepreneurs for hotel, lodge and restaurant during the

period from 2005 to 2008. On interaction with the concerned authority it came to light

that they do not have special scheme for hospitality entrepreneurs but they sanction term

loans to the entrepreneurs. On the other hand the response from these hospitality sectors

is much less in comparison to the other sectors of economy.

4.2.5 Hospitality industry associations

There are different associations at national, regional and state level who are

constantly working to promote and protect the interest of entrepreneurs. Some of the

associations who are working for the benefit of hospitality sector are as follows:

Federation of Hotel Restaurant Association of India, Federation of Hotel Restaurant

Association of Eastern India, Greater Guwahati Hotel Workers Union, etc.

4.2.5.1 Federation of Hotel and Restaurant Association of India (FHRAI)

Federation of Hotel & Restaurant Associations of India provides an interface

between the hospitality industry, political leadership, academics, international

associations and other stake holders of the sector. FHRAI is committed to promote and

protect the interests of the Hospitality Industry by actively seeking better privileges and

more concessions for the Industry. FHRAI always kept abreast with the latest trade

information and trends, statistical analysis and reports on various topics that have a

direct impact on the Industry, government notifications and circulars. FHRAI helps the

Hospitality Industry to grow, prosper and keep in pace with the development hotel and

restaurant in the international scenario.

4.2.5.2 Hotel and Restaurant Association of Eastern India

Hotel and restaurant association of eastern India is one of the regional associates

of Federation of hotel and restaurant association of India and is actively working in

sustaining the mission of the FHRAI in eastern region of India having the activities of

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(i) interaction with members, (ii) dissemination of information, (iii) circulation of

newsletters and other literature concerning the hospitality industry, (iv) organizing

conventions, seminars, and symposia, (v) conducting research on hotel and restaurant

industry and updating members on latest developments, (vi) training of human resource

in different spheres of hotel and restaurant activity, (vii) taking legal action in favour of

members when member’s interest and thereby the interest of the Industry is at stake,

(viii) help in expansion and development of existing projects and (ix) being the

authentic voice of the hospitality industry and lobbying for all relevant matters before

the state and central government

4.3 PRESENT SCENARIO OF ACCOMMODATION SECTOR IN ASSAM

In order to access the present status of accommodation sector in the state , door

to door survey was carried out in hotels and lodges, of the selected nodes, viz Dhubri,

Barpeta Road, Guwahati, Tezpur, Kaziranga, Sivsagar, Dibrugarh, Tinsukia and Silchar

during the period 2008-09 (Fig 4.1).The survey covered all categories of accomm-

odation units including government recognized ones.

Fig 4.1: Sample site of the study area.

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Though there are different categories of hotels and lodges, accommodation units

were grouped into three categories based on the field experience. They are categorized

as economy, budget, and luxury category. Such grouping has been done on the basis of

the standard and service quality of those units. The economy category units are

generally cheaper (tariff < Rs 500 per room per night) and meet the demand of middle

and lower income group of people. The budget category units are fairly good in terms of

Indian standard with facilities like partial air conditioning, television, telephone, room

service etc. These accommodation units meet the demand of upper middle classes which

ranges between Rs 500 to Rs 1000 per room per night. However the luxury category

accommodation units are the best in terms of pleasant environments, appealing facades,

air conditioning, room service, bar, foreign currency exchange facilities, travel agency,

valet service etc. to meet the demands of elite and upper class tourists. They offer

comfortable and pleasant stay for well-off domestic and foreign tourist at comparatively

high price. The analysis of the accommodation units in terms of its status and prospects

of different nodes of Assam are as follows:

4.3.1 Dhubri

Dhubri district is considered as the gateway of western Assam. Dhubri town is a

small old town on the bank of the Brahmaputra and Gadadhar river. Dhubri is the

administrative headquarter of District Dhubri. Dhubri possesses a rich archaeological

and cultural heritage from the ancient time and one of the important administrative and

commercial nodes of the state developed in the British colonial period.

The material evidences of rich cultural heritage of Dhubri district are marked by

the existence of heritage buildings including temples, shrines and some archaeological

remains. Gurudwara, Panchpir Dargaha, the mosque of Rangamati, the oldest mosque

of Assam, Mahamaya Dham, Netai Dhubuni Ghat, etc. are some of the attractions for

strangers in the district. Dhubri district is also bestowed with attractive scenic and

natural sites like Chakrachilla wildlife sanctuary. The palaces of jaminders of Gauripur,

located at a distance of about 9 km from the Dhubri town attract the people for their

unique structures, architecture and historic importance. Similar palaces are also found in

Bilasipara and its nearby areas. The hotels and lodges of Dhubri also acts as the transit

point to the places of Mankachhar, Phulbari etc.

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Looking at the importance of the place, first accommodation unit came up in the

year1950.The journey of the hotel business was found to be very slow till 2005 (Table

4.6). However the rate of increment of hotel units was found to be 38.88 percent after

2005. The total number of accommodation unit at Dhubri stands at 18 offering 211

rooms in total to its guest. There are 13 hotels and lodges offering single room below Rs

100 accounts for 72.22 percent of the total hotels and lodges. There are 14 lodges, i.e.

77.78 percent of the total accommodation units which offers only rooms without any

other facilities like restaurant, bar, room service, laundry, travel agency, etc. The

maximum numbers of lodges are with common toilet and bathrooms facilities though

some of the lodges have attached bath. There are only 5 hotels offering some of the

facilities like restaurant, bar, room service, laundry, travel agency, etc. The study

indicates that there is a moderate growth in the category of lodges with minimal

Table 4.6: Trends of development of hotels and lodges at Dhubri town

Period No. of hotels and lodges

established

Percentage of hotels and

lodges

1950-1955 1 5.56

1955-1960 1 5.56

1960-1965 1 5.56

1965-1970 Nil -

1970-1975 1 5.56

1975-1980 Nil -

1980-1985 1 5.56

1985-1990 2 11.10

1990-1995 1 5.56

1995-2000 1 5.56

2000-2005 2 11.10

2005 onwards 7 38.88

Total 18 100.00

Source: Field survey, 2008-2009

services. These lodges are run by the owner with the help of 2-3 employees. Though the

capital investment is high in this category, but the working capital requirement is much

lesser. Thus, they can run the business with even minimum occupancy. But it is not

lucrative business as the owners’ perceive. However, the hotel and lodges having room

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rent between Rs. 40.00 to Rs. 300.00 are doing comparatively good business which

accounts for 79 percent of the total hotel business of Dhubri.

The hotels and lodges of Dhubri receive maximum business from transit

passengers which alone accounts for 59.09 percent (Table 4.7). It also receives business

from corporate to some extent which accounts to 18.18 percent. The corporate are

basically from agro chemical companies and from fast moving consumer goods.

Altogether, transit passenger and corporate are occupying maximum rooms at Dhubri.

The hotels and lodges of Dhubri have not been able to attract much of pleasure tourists.

It accounts only 4.55 percent because of the fact that it is located at the eastern part of

Assam and no consorted effort being yet made to promote tourism in the district. As the

district has gained some importance from historical and religious point of view,

therefore the tourists who are interested in the historical and religious aspects, presently

visit the town and nearby areas.

Table 4.7: Nature of occupancy pattern in hotels and lodges at Dhubri town

Clientele Hotels and lodges receiving

different types of clientele

Percentage of

business

Corporate 4 18.18

Business 2 9.09

Recreational Tourist 1 4.55

Medical Tourist Nil -

Official job 2 9.09

Transit passenger 13 59.09

*Some hotels and lodges have been receiving clientele from multiple background

Source: Field survey, 2008-2009

So far the occupancy is concerned; the hotels and lodges of Dhubri receive 39.44

percent of annual average occupancy (Table 4.8). During winter they enjoy more

occupancy than summer because of the fact that during summer monsoon period

activity of travel of transit segment from areas like Mankachar, Phulbari, etc. is

restricted due to flood and rising water level of Brahmaputra river. Therefore the

occupancy of the hotels and lodges goes down during summer.

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Table 4.8: Average occupancy of hotels and lodges at Dhubri town

Number of

hotels and

lodges (fi)

Percentage of

occupancy (xi)

fixi Average occupancy

percentage of hotels and

lodges (∑fixi/∑fi)

1 20 20

39.44

6 30 180

5 40 200

5 50 250

1 60 60

∑ fi=18 ∑ fixi = 710

Where ∑ fi = Total number of hotels and lodges, and ∑ fixi = Sum of the product of number

of hotels and the occupancy percentage

Source: Field survey, 2008-2009

At Dhubri hotels and lodges are offering different types of rooms to meet the

needs of guests. There are altogether 212 rooms in the hotels and lodges, out of which

there are 103 single rooms, 101 double rooms, 4 triple rooms and 4 dormitories;

however there is no suite available in the hotels and lodges at Dhubri town (Table 4.9).

On the other hand out of the total single rooms available 93.20 percent are non air

conditioned whereas out of total double rooms 91.09 percent are non air conditioned.

Table 4.9: Availability of rooms in hotels and lodges at Dhubri town

Types of rooms No. of

rooms

No. of non

a.c rooms

% of non

a.c rooms

No. of a.c

rooms

% of a.c

rooms

Single 103 96 93.20 7 6.80

Double 101 92 91.09 9 8.91

Triple 4 4 100 Nil -

Dormitory 4 4 100 Nil -

Suite Nil Nil - Nil -

Total 212 196 16

Source: Field survey, 2008-2009

The number of air conditioned rooms (including single and double) are very minimum

i.e. 16 only representing 7.55 percent hotel rooms at Dhubri. From the discussion with

the owner of the hotels it was found that there is very casual demand of suites, therefore

the owners are not in favour of providing such facilities.

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The hotels and lodges of Dhubri town are offering different types of rooms at

different room tariff. The hotels and lodges of Dhubri town has maximum room in the

economy category which accounts for 82.35 percent, whereas in the luxury category

there are only 1.96 percent of rooms out of the total rooms available to its guest(Table

4.10). Hotels and lodges are offering single and double room as low as Rs. 40.00 and

Rs. 80.00 respectively including taxes. Whereas single rooms and double rooms are sold

as high as Rs. 650.00 and 1050.00 respectively including taxes.

Table 4.10: Availability of different category of rooms at various tariff ranges

in hotels and lodges at Dhubri town

Category Room

tariff

(Rs.)

Number of hotels and lodges offering

Single

room

Double

room

Triple

room

Dormitory Suite

room

Total

Eco

no

my

<100 13 5 Nil 1 Nil 19

100-200 4 10 Nil Nil Nil 14

200-300 1 4 Nil Nil Nil 5

300-400 1 1 1 Nil Nil 3

400-500 Nil 1 Nil Nil Nil 1

Total 42

Bu

dg

et

500-600 2 1 Nil Nil Nil 3

600-700 Nil 1 1 Nil Nil 2

700-800 Nil 1 Nil Nil Nil 1

800-900 Nil 2 Nil Nil Nil 2

900-1000 Nil Nil Nil Nil Nil Nil

Total 8

Lux

ury

>1000 Nil 1 Nil Nil Nil 1

Total 1

*Some of the hotels and lodges offer same types of rooms which belongs to more

than one tariff ranges.

Source: Field survey, 2008-2009

As discussed with the owners of the hotels and lodges reveals that the transit

passengers occupy maximum rooms in the Dhubri town. These transit passengers are

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generally from low income group and look for very low priced rooms and they just need

to spend the night. Most of such occupants are from the south bank of river

Brahmaputra in Dhubri district, from the places like Phulbari, Mancachar, etc. As the

Dhubri town is the administrative headquarter of the district, official work and business

activities are the main pulling factor for the hotel occupants. This situation encouraged

in the development of economy class services in hotels (Table 4.11). The investigation

clearly gives an indication that economy category of hotels and lodges are dominating

Table 4.11: Number of hotels and lodges offering rooms at economy, budget and

luxury category at Dhubri town

Tariff range vis-à-vis

rooms

Ranges of rooms tariff (Rs.) No. of hotels and lodges

Economy <500 42

Budget 500-1000 8

Luxury >1000 In 1 hotel

*Some of the hotels and lodges offer same types of rooms which belongs to more than one

tariff ranges.

Source: Field survey, 2008-2009

hotel business at Dhubri which alone accounts for 82.35 percent. On the other hand

there is negligible number of luxury hotels to accommodate guest at Dhubri town which

accounts only 1.96 percent.

4.3.2 Barpeta Road

Barpeta Road is one of the important nodes in western Assam in terms of trade

and commerce. Barpeta Road has to its credit an agro chemical distributor and it also

has a fish seedling industry nearby. It is also equally an important tourist transit point

for destination like Manas National Park which is one among the 22 world heritage sites

of India apart from vaisnavite Monasteries (Satra) like Barpeta Satra, Chinpara-Vithi,

Sundaridiya Satra, Patbaushi Satra, Ganak Kuchi Satra, Baradi Satra, etc.

The first accommodation unit at Barpeta Road was started in 1976 by the

Tourism Department, Government of Assam with five twin bedded rooms looking at the

tourism potential of Manas National Park, which was later declared tiger reserve by the

Government of India. This lodge has canteen facilities for the tourists. However, the

pace of development of accommodation unit was rather slow till 2005 (Table 4.12). The

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slow development of hotel business at Barpeta Road can be attributed to the cause of

Bodo Land movement which started late in the eighties. The Manas National Park was

closed for the tourist during the Bodo Land agitation. After the Bodo Land Territorial

Council Accord in 2003 and improvement of law and order situation, Manas was

reopened for tourists.

Field survey reveals that there are all together 10 hotels and lodges at Barpeta

Road with a capacity of 150 rooms. There is a little bit of improvement in the

development of accommodation unit after 2005 which account for 30 percent share of

hotels and lodges. There are six lodges and 4 hotels units available in the town. The

lowest room for the guest at Barpeta Road stands at Rs. 70.00 in the single room

category, 120.00 for double and Rs. 165.00 for triple room including taxes.

Table 4.12: Trends of development of hotels and lodges at Barpeta Road

Period No. of hotels and lodges established

Percentage of hotels and lodges

1975-1980 1 10.00

1980-1985 1 10.00

1985-1990 2 20.00

1990-1995 1 10.00

1995-2000 1 10.00

2000-2005 1 10.00

2005 onwards 3 30.00

Total 10 100.00

Source: Field survey, 2008-2009

The hotels and lodges of Barpeta Road are getting 63.64 percent of its total

business from corporate sector. This sector includes representative from agro chemical

companies, consumer goods, tube and tyre companies, etc. The hotels and lodges of

Barpeta Road are also getting business from the business tourists which accounts for

18.18 percent (Table 4.13). This is because of the presence of an Agro Chemical

Distributor at the town and fish seedling industry near the town, people from the

different areas like Dhubri, Tamulpur, Rangia, etc make a visit to the town for the

purpose of business. On the other hand the hotels and lodges are also receiving some

amount of recreational tourists especially during winter which accounts for 18.18

percent of the business because of its close proximity to Manas National Park.

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Table 4.13: Nature of occupancy pattern in hotels and lodges at Barpeta Road

Clientele Hotels and lodges receiving

types of clientele

Percentage of

business

Corporate 7 63.64

Business 2 18.18

Recreational tourist 2 18.18

Medical Tourist Nil -

Official job Nil -

Transit passenger Nil -

*Some hotels and lodges have been receiving clientele from multiple sources.

Source: Field survey, 2008-2009

The hotels and lodges of Barpeta Road receive average room occupancy of 44

percent (Table 4.14). The occupancy of the hotels and lodges almost remain same

throughout the year. Although, during winter, the hotels and lodges receives slightly

more occupancy than summer because of the Manas National Park which has been able

to attract recreational tourists to some extent.

Table 4.14: Average occupancy of hotels and lodges at Barpeta Road

Number of hotels and

lodges (fi)

Percentage of occupancy (xi)

fixi Average occupancy percentage of hotels

and lodges (∑fixi/∑fi)

1 30 30

44.00

2 35 70

2 40 80

4 50 200

1 60 60

∑ fi = 10 ∑ fixi =

440

Where ∑ fi = Total number of hotels and lodges, and ∑ fixi = Sum of the product of

number of hotels and the occupancy percentage

Source: Field survey, 2008-2009

The hotels and lodges of Barpeta Road has all common types of rooms like single,

double, triple, dormitory and suite room to offer to its guest like other towns and cities of

Assam. There are all together 150 rooms in total. Out of the total rooms available, there

are 66 single rooms (44 percent) and 74 double rooms (49.33 percent). However there is

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one suite room at Barpeta Road. On the other hand there are only 10 (6.67 percent) air

conditioned rooms in hotels and lodges of the town (Table 4.15).

Table 4.15: Availability of rooms in hotels and lodges at Barpeta Road

Types of rooms No. of rooms No. of non a.c. rooms

% of non a.c rooms

No. of a.c. rooms

% of a.c. rooms

Single 66 66 100.00 Nil -

Double 74 65 87.84 9 12.16

Triple 7 7 100.00 Nil -

Dormitory 2 2 100.00 Nil -

Suite 1 Nil - 1 100.00

Total 150 140 10

Source: Field survey, 2008-2009

Though the hotels and lodges of Barpeta Road are offering different types of

rooms to its guest at different room tariff, the availability of number of rooms at higher

tariff range is much lower. The majority of the hotels and lodges are offering rooms at

economic tariff range which accounts for 75.67 percent of the total hotels and lodges

available (Table 4.16 and 4.17). On the other hand only two hotels are offering rooms

Table 4.16: Availability of different category of rooms at various tariff ranges in

hotels and lodges at Barpeta Road

Category Room tariff (Rs.)

Number of hotels and lodges offering

Single

room

Double

room

Triple

room

Dormitory Suite

room

Total

Eco

no

my

< 100 3 Nil Nil Nil Nil 3

100-200 6 4 1 Nil Nil 11

200-300 2 4 Nil Nil Nil 6

300-400 1 3 1 Nil Nil 5

400-500 Nil 3 Nil Nil Nil 3

Total 28

Bu

dget

500-600 1 1 Nil 1 Nil 3

600-700 Nil Nil Nil 1 Nil 1

700-800 Nil 2 Nil Nil Nil 2

800-900 Nil 1 Nil Nil Nil 1

900-1000 Nil Nil Nil Nil Nil Nil

Total 7

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Lu

xu

ry

>1000 Nil 1 Nil Nil 1 2

Total 2

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff

ranges.

Source: Field survey, 2008-2009

at luxury category at Barpeta Road. The lowest tariff for single room is available at

Rs.70.00 and double room at Rs. 120.00 inclusive of taxes. From the present trend it can

be stated that the hotel business at Barpeta Road is flourishing at economic category and

it will do so in near future.

Table 4.17: Number of hotels and lodges offering rooms at economy, budget and

luxury category at Barpeta Road

Tariff range vis-à-vis rooms

Ranges of rooms tariff (Rs.)

No. of hotels and lodges

Economy <500 28

Budget 500-1000 7

Luxury >1000 In 2 hotels

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff ranges

Source: Field survey, 2008-2009

The investigation shows that 75.68 percent of the hotels and lodges at Barpeta

Road are offering rooms to its guest at economy category however 5.41 percent of

hotels are offering rooms at luxury category. Survey confirms that the hotel business is

dominated by the economy category at Barpeta Road.

4.3.3 Guwahati

Guwahati is an important city in Eastern India and often considered as the

gateway to the North-East Region (NER). Dispur, the capital of the state of Assam is

situated within the city. Guwahati is one of the most rapidly growing cities in India.

During past few decades it has experienced rapid spatial expansion and also steep rise in

population. In fact according to a survey done by a UK media, Guwahati is among the

100 fastest growing cities of the world and is 5th fastest growing city in India

(www.guwahati.com).

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The city is situated between the southern bank of the Brahmaputra river in the

north and the foothills of Meghalaya in the south. The city is gradually being expanded

to the northern bank of the Brahmaputra. The Guwahati Municipal Corporation, the

city's urban administration, administers an area of 216 sq km, while the Guwahati

Metropolitan Development Authority, the planning and development body administers a

total area of 340 sq km.

Guwahati is the major administrative, commercial, and educational hub of

North-East India and is home of important academic institutions, such as the Indian

Institute of Technology Guwahati, and other premier institutions like Gauhati

University, Cotton College, National Institute of Pharmaceutical Education and

research, Shankardev Health University, Agriculture University (Veterinary), Assam

Engineering College, Institute of Hotel management, Catering Technology and Applied

Nutrition etc. Apart from these there are other private institutions like Assam Down

Town University, Don Bosco University, Royal group of Institutions, etc. for higher

education. The city is also a major center for cultural activities and sports in the North

Eastern Region and for the administrative and political activities of Assam. The city is

also an important hub for transportation in the entire North East Region.

There is a great potential of tourism growth in and around due to its

advantageous position in urban infrastructure, transportation and communication

facilities along with its natural, historical and cultural attractions. Kamakhya Temple is

a historic monument and important pilgrimage site of the city. The temple is also able to

attract religious tourist from different parts of the country as well as foreign tourists,

especially during ‘Ambubashi Mela’, in the month of June. The other important historic

temples situated at Guwahati are Nabagraha Temple, Umananda, Basistha Temple,

Bhubaneshwari Temple along with contemporary temples like ISKCON temple, Dol

Govinda Temple that attracts religious tourists. The other attractions in and around the

city are Assam State Zoo cum Botanical Garden, Srimanta Shankardev Kalakhetra,

Deepor Beel (lake), Narengi Golf Club, Madan Kamdev archaeological site, Accoland

(fun and water theme park), Hajo, Sualkuchi (site for Assamese silk), etc.

The city is also gradually emerging as an important center for health facilities in

Eastern India, featuring many government and private specialty hospitals and health

research centres. The most important are the Gauhati Medical College and Hospital,

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Regional Institute of Ophthalmology, Dispur Hospital, Guwahati Neurological Research

Centre (GNRC), Down Town Hospital, International Hospital, Dr. B. Borooah Cancer

Institute, Hayat Hospital, Sankardev Netralaya, etc. Presently there are four government

hospitals with 2427 beds including the one of CRPF, 23 private hospitals with 1724

beds, and 24 nursing home with 696 beds, run by the private organizations (Department

of Business Administration, GU, 2011).

Development of the industries in and around the city also acts as a key driver for

the accommodation sector. There are around 30 medium to large manufacturing units in

and around Guwahati and a large number of small and tiny units. A new SEZ measuring

540 acres of land has been proposed in the south west Guwahati and it will

accommodate small to medium units (Department of Business Administration, GU,

2011).

As Guwahati is one of the fastest growing cities in India and one of the 100

fastest growing cities of the world, it has registered potential growth in terms of

physical expansion, population, commercial activities and flow of visitors to the city. If

this economic growth continues and law and order situation stabilizes in future,

Guwahati city will surely attract more and more business and leisure travelers in the

coming decade. This unprecedented growth is likely to have a substantial demand for

accommodation units. This may be the reason for attracting a good number of 5-star

hotels at Guwahati in the next few years.

Guwahati is the gateway to the North East India and is a commercial hub for the

whole of North East India. As a result, a good number of hotels and lodges have come

up with the passage of time in different categories viz. economy, budget and luxury to

cater to the needs of the strangers as per their requirements. At present there are 171

hotels and lodges with a room capacity of 4581 (field survey, 2008-09). Investigation

regarding the trend of development shows that there were only 5 hotels till 1975. The

hotel industry got momentum from 1975 onwards with the gradual development of

secondary and tertiary sector. The other reason of development can be attributed to the

development of road and rail infrastructure development that got a new momentum after

shifting the capital of Assam from Shillong to Guwahati in 1971.Though the hotel

industry got momentum from 1975 onwards but during the period from 1975 to 1995,

only 56 the number of hotel and lodges added up, constituting 32.75 percent of the total

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hotels and lodges available within that 20 year period. On the other hand there were

sharp increase in the growth of hotels and lodges from 1995 onwards and there are

record growth of hotels and lodges from 2005 onwards, which accounts for 27.49

percent of the total hotels and lodges available in the city (Table 4.18). Expansion of the

city, growth of service sector, tourism, education, health care, low air travels, etc. are

the key drivers for the growth of hotels and lodges in the city and will continue to grow

further in near future. Another factor for the growth of this sector in the city is

associated with the presence of administrative headquarters of Assam as well as many

of the head offices of State Government and Central Government. As a result, the city

offers a good number of accommodation unit right from approved hotel (till four star) to

unclassified hotel and lodges. Out of 171 hotels and lodges only 12 hotels are

recognized as star category hotels by the Ministry of Tourism Government of India and

another 27 can be classified as equivalent to star category hotels looking at the facilities

they are providing to the guest. However out of 27 hotels 14 hotels with room capacity

of 546 can be classified as 2 star hotels, 10 hotels with room capacity of 485 as 3 star

hotel and 3 hotels with room capacity of 178 as 4 star hotels. Though the hotels and

lodges are scattered all over the city, more concentration of hotels and lodges are found

at Paltan Bazar area being an important node of road and railway transport. Apart from

Table 4.18: Trends of development of hotels and lodges in Guwahati

Period No. of hotels and lodges

established

Percentage of

hotels and lodges

1955-1960 1 0.58

1960-1965 Nil -

1965-1970 3 1.75

1970-1975 1 0.58

1975-1980 11 6.43

1980-1985 10 5.85

1985-1990 19 11.11

1990-1995 16 9.36

1995-2000 24 14.04

2000-2005 39 22.81

2005 onwards 47 27.49

Total 171 100.00

Source: Field survey, 2008-2009

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Paltan Bazar, Ganeshguri area of the city witnessed more hotel density due to its

proximity of state capital i.e. Dispur apart from presence of good number of private

nursing homes and other allied commercial activities. Capitalizing these, a good number

of hotels and lodges have sprung up rapidly in this locality.

Guwahati has been able to draw a good number of tourists from different parts

of the country as well as from foreign origin and offer all categories of hospitality

services, ranging from economy to luxury. Corporate clientele dominates the hospitality

market in Guwahati. It accounts for 45.72 percent of the total accommodation demand

followed by business clientele i.e. 20.07 percent while recreational tourists accounts for

7.81 percent, medical 11.15 percent, official job 6.69 percent and transit passenger 8.55

percent (Table 4.19). From the field investigation it has been found that there varies

occasional demands for rooms, especially at star category hotels in the events of

conferences held at national and regional levels, as the city also gradually emerging as

important conference venue of the region due to its better connectivity and

comparatively developed urban infrastructure of the entire North East Region.

Table 4.19: Nature of occupancy pattern in hotels and lodges in Guwahati

Clientele Hotels and lodges receiving different types of clientele

Percentage of business

Corporate 123 45.72

Business 54 20.07

Recreational tourist 21 7.81

Medical tourist 30 11.15

Official job 18 6.69

Transit passenger 23 8.55

*Some hotels and lodges have been receiving clientele from multiple sources.

Source: Field survey, 2008-2009

So far occupancy is concerned; hotels and lodges especially at the Paltan Bazar

area of the city are getting good occupancy from transit passengers due to its proximity

to railway and bus transit point. The hotels and lodges of Guwahati are getting an

average annual occupancy of 56.64 percent which is higher than the hotels and lodges of

the other places of Assam (Table 4.20).

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Table 4.20: Average occupancy of hotels and lodges in Guwahati

Number of hotels and

lodges (fi)

Percentage of occupancy (xi)

fixi Average occupancy

percentage of hotels and

lodges (∑fixi/∑fi)

2 30 60

56.64

3 35 105

8 40 320

6 45 270

56 50 2800

7 55 385

55 60 3300

8 65 520

15 70 1050

4 75 300

4 80 320

3 85 255

∑ fi = 171 ∑ fixi = 9685

Where ∑ fi = Total number of hotels and lodges, and ∑ fixi = Sum of the product of

number of hotels and the occupancy percentage

Source: Field survey, 2008-2009

The other notable factor regarding occupancy of the hotels and lodges is that the

occupancy of the hotels at Guwahati goes down, especially on Saturday and Sunday

night in every week. On the other hand, during government holidays and assembly

session of the Assam Legislative Assembly, strangers coming for official jobs reduce to

very minimum at hotels and lodges that make overall occupancy lower. Occupancy

level of the hotels and lodges at Guwahati especially three star and four star categories

also reduced due to the increasing number of late evening flights from Guwahati to New

Delhi and Kolkata on regular basis.

The hotels and lodges of Guwahati have maximum number of rooms in

comparison to the other towns of Assam. The hotels and lodges are offering different

types of rooms at different tariff to suit the needs of the guests. There are altogether

4581 rooms available at Guwahati (Table 4.21). Out of the available rooms, there are

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1096 single rooms and 3086 double rooms of which 11.68 percent of the single rooms

and 45.01 percent of double rooms are air conditioned. Apart from triple and dormitory

there are 78 suites available at the hotels of Guwahati in various tariff ranges.

Table 4.21: Availability of rooms in hotels and lodges in Guwahati

Types of

rooms

No. of rooms No. of non

a.c rooms

% of non

a.c rooms

No. of a.c

rooms

% of a.c

rooms

Single 1096 968 88.32 128 11.68

Double 3086 1697 54.99 1389 45.01

Triple 267 260 97.38 7 2.62

Dormitory 54 54 100 Nil -

Suite 78 Nil - 78 100

Total 4581 2979 1602

Source: Field survey, 2008-2009

From the discussion with the owners of the hotels and lodges it came to light

that the owners are more interested to construct twin rooms (two separate, single bed in

a room) which saves more space rather than constructing single room. Apart from it

twin bedded rooms can be sold as a single room when situation demands.

The hotels and lodges of Guwahati are offering different types of rooms to its

guest at various tariff ranges (Table 4.22 and 4.23). However 42.13 and 38.67 percent of

the hotels and lodges are offering single and double rooms respectively at economy

tariff ranges. On the other hand 34.81 and 43.70 percent are offering single and double

rooms respectively at budget category tariff ranges. In the luxury category 25 and 48.91

percent of single rooms and double rooms respectively available at luxury category

along with 19.57 percent of suite rooms. The survey shows that there are 84.72 percent

of hotels and lodges at Guwahati, offering economy and budget category rooms. The

availability of single room at the lowest tariff starts from Rs. 49 and double rooms as

low as Rs 99 inclusive of taxes. On the other hand, the high tariff for a single room is

found to be Rs 5750 and double room as high as Rs. 6000 exclusive of taxes. In case of

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Table 4.22: Availability of different category of rooms at various tariff ranges in

hotels and lodges in Guwahati

Category

Room

tariff

(Rs.)

Number of hotels and lodges offering

Single

room

Double

room

Triple

room Dormitory

Suite

room Total

Eco

no

my

<100 14 3 1 Nil Nil 18

100-200 61 17 6 Nil Nil 84

200-300 40 64 5 4 Nil 113

300-400 27 44 30 Nil Nil 101

400-500 16 17 17 9 Nil 59

Total 375

Bud

get

500-600 12 20 7 4 Nil 43

600-700 10 10 7 Nil Nil 27

700-800 11 12 2 2 Nil 27

800-900 9 12 3 Nil Nil 24

900-1000 5 5 2 2 Nil 14

Total 135

Lu

xu

ry

>1000 23 45 5 1 18 92

Total 92

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff ranges. Source: Field survey, 2008-2009

suite room, the lowest tariff starts at Rs 1300 and highest tariff stands at Rs 25,000

excluding taxes.

Table 4.23: Number of hotels and lodges offering rooms at economy, budget and

luxury category in Guwahati

Tariff range vis-à-vis

rooms

Ranges of rooms

tariff ( Rs.)

No. of hotels and

lodges

Economy <500 375

Budget 500-1000 135

Luxury >1000 In 92 hotels

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff ranges. Source: Field survey, 2008-2009

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From the investigation it can be concluded that 84.72 percent of the hotels and

lodges of Guwahati city are offering rooms at economy and budget category to its guest.

This gives a clear indication that economy and budget categories of hotels and lodges

have dominance over luxury category. This also gives further indication that the hotels

and lodges at Guwahati are receiving maximum tourists/ strangers from low as well as

middle income group.

4.3.4 Tezpur

Tezpur is the headquarter of Sonitpur district of central Assam and an important

town on the north bank of Brahmaputra river. Apart from its administrative functions,

the town boasts of a Central University, renowned colleges, and a number reputed

schools. Tezpur also houses the largest and oldest hospital of mental health of North

East India. There are many tea gardens surrounding the town of Tezpur. It is also an

important commercial, administrative and educational hub, apart from housing a major

base of the Indian Army and Air force (Salonibari) of Assam. It is frequented by 2-20

percent of the foreign tourists coming to the state (Bhattacharya, 2004). Tezpur is a

transit point for tourist visiting Tawang (an important tourist spot of Arunachal

Pradesh). Traders from nearby places of Arunachal Pradesh visits Tezpur for their

business activities. The town is also important from tourism point of view, as there are

numbers of tourist spots like Chitralekha Udyan (Cole Park) , Agnigarh, Padum

Pukhuri, Hazara Pukhuri, Bamuni Hills (a ruins site of 10th

-12th

century) and Da

Parbatia (a ruins site of 7th

century), ideal for pleasure tourists. Mahabhairab, Bhairabi

Devalaya, etc. are historic temples of the town and important pilgrimage sites. Nikamul

satra, located in the northern side of the town is an ideal point for having a glimpse of

Satriya culture. With the reputation of being clean town, and with other tourist

attraction, Tezpur has been able to attract different categories of tourists. As a result, a

good numbers i.e. 31 hotels and lodges have come up in different categories i.e.

economy, budget and luxury to accommodate all types of tourists as per their

requirements.

Though the accommodation units emerged here since the year 1960, the growth

of accommodation units was rather slow till 1995 (Table 4.24). The hotel business

gained momentum from 1995 onwards and the maximum number of accommodation

units came between 2005 to 2009, which is 08 in number, representing 25.80 percent

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Table 4.24: Trends of development of hotels and lodges at Tezpur

Period No. of hotels and lodges

established

Percentage of hotels

and lodges

1960-1965 1 3.23

1965-1970 Nil -

1970-1975 1 3.23

1975-1980 3 9.68

1980-1985 2 6.45

1985-1990 1 3.23

1990-1995 3 9.68

1995-2000 5 16.12

2000-2005 7 22.58

2005 onwards 8 25.80

Total 31 100.00

Source: Field survey, 2008-2009

accommodation units of the town. Field investigation revealed the presence of 31

accommodation units with a total room capacity of 501. There are as many as 19

numbers of lodges (61.29 percent) offering accommodation only. From the remaining

12 accommodation units, 5 units are offering rooms along with common dining

facilities for the guests in the form of canteen with table d’hôte menu for breakfast,

lunch and dinner. The remaining 7 accommodation units are offering rooms with some

of the other facilities like, restaurant, bar, room service, running hot and cold water,

laundry, travel agency etc.

The hotels and lodges of Tezpur are generating good business from business

tourists i.e. 42.22 percent as Tezpur is an ideal business hub for the people of Arunachal

Pradesh, being the transit connection point of the state (Table 4.25). On the other hand,

corporate are also contributing a good volume of business (i.e. 40.00 percent) to the

hotels and lodges of Tezpur. Since this is an upcoming town, a good percentage of

corporate from pharmaceutical companies, fast moving consumer goods, etc. visit the

town every day. Altogether corporate and business tourists accounts for 82.22 percent of

the total hotel business at Tezpur. Hotels and lodges of Tezpur town are also receiving

recreational tourists (13.33 percent) as the area is rich in historical monuments and

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scenic constituents. Transit tourists are also contributing some of the hotel business as

the town becomes transit point to the tourists who wishes to visit Tawang at Arunachal

Pradesh, especially during winter season.

Table 4.25: Nature of occupancy pattern in hotels and lodges at Tezpur

Clientele Hotels and lodges receiving

different types of clientele

Percentage of business

Corporate 18 40.00

Business 19 42.22

Recreational

tourist

6 13.33

Medical tourist Nil -

Official job Nil -

Transit passenger 2 4.45

*Some hotels and lodges have been receiving clientele from multiple sources.

Source: Field survey, 2008-2009

The hotels and lodges of Tezpur town register average room occupancy of 54.10

percent (Table 4.26). In comparison to other towns of Assam, the hotels and lodges at

Tezpur are doing a good business in terms of room occupancy. The hotels and lodges

receive more occupancy during winter than summer, as winter is the best season for

tourists. Apart from it the hotels and lodges of Tezpur also receives some percentage of

room occupancy from the tourists who visit Tawang (Arunachal Pradesh) during winter.

So far as staying facilities are concerned, altogether 501 rooms are available at Tezpur.

However majority of them are double rooms (63.67 percent) followed by single rooms

(29.54 percent). However other types of rooms like triple, dormitory and suite rooms are

also available to accommodate different categories of tourists (Table 4.27). On the other

hand, there are negligible numbers of suite rooms (7 nos.) at Tezpur. This is because

there is very less demand of high priced rooms which is authenticated through the

interaction with owner of the hotels and lodges. Sale of the suite rooms are thus very

less. The hotels and lodges of Tezpur are also having a very less number of

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Table 4.26: Average occupancy of hotels and lodges at Tezpur

Number of hotels and lodges (fi)

Percentage of occupancy (xi)

fixi Average occupancy

percentage of hotels and

lodges (∑fixi/∑fi)

1 30 30

54.10

2 35 70

2 40 80

2 45 90

6 50 300

2 55 110

11 60 660

1 62 62

1 65 65

3 70 210

∑ fi = 31 ∑ fixi = 1677

Where ∑ fi = Total number of hotels and lodges, and ∑ fixi = Sum of the product of

number of hotels and the occupancy percentage

Source: Field survey, 2008-2009

air conditioned rooms which accounts for 13.77 percent of the total rooms available in

the town.

Table 4.27: Availability of rooms in hotels and lodges at Tezpur

Types of rooms

No. of rooms

No. of non a.c rooms

% of non a.c rooms

No. of a.c rooms

% of a.c rooms

Single 148 126 85.14 22 14.86

Double 319 279 87.47 40 22.54

Triple 22 22 100.00 Nil -

Dormitory 5 5 100.00 Nil -

Suite 7 Nil - 7 100.00

Total 501 432 69

Source: Field survey, 2008-2009

Hotels and lodges of Tezpur are offering different types of rooms at various

tariff ranges to suit the needs of the guests. However 29.76 and 46.43 percent of the

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hotels and lodges are offering single room and double room respectively at economy

tariff range (Table 4.28 and 4.29). At Tezpur the lowest tariff of the single room is

found to be Rs.60.00 and Rs.120.00 for double room including taxes. In the budget

Table 4.28: Availability of different category of rooms at various tariff ranges in

hotels and lodges at Tezpur

Category Room tariff

(Rs.)

Number of hotels and lodges offering

Single

room

Double

room

Triple

room

Dormitory Suite

room

Total

Eco

no

my

<100 6 Nil Nil Nil Nil 6

100-200 9 14 Nil Nil Nil 23

200-300 7 10 1 1 Nil 19

300-400 1 10 9 3 Nil 23

400-500 2 5 5 1 Nil 13

Total 84

Bu

dg

et

500-600 Nil 4 5 Nil Nil 9

600-700 1 5 2 Nil Nil 8

700-800 Nil 2 Nil Nil Nil 2

800-900 Nil 2 Nil Nil Nil 2

900-1000 1 1 Nil Nil 1 3

Total 24

Lux

ury

>1000 2 6 Nil Nil 6 14

Total 14

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff

ranges.

Source: Field survey, 2008-2009

tariff range category, only 8.33 and 58.33 percent of the hotels and lodges are offering

single room and double room respectively. However in the luxury tariff range category,

14.29 and 42.86 percent of the hotel and lodges are offering single and double rooms.

The costliest suite room is sold at a rate of Rs. 1900.00 excluding taxes.

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Economy and budget category hotel and lodges dominate the business at Tezpur

town, which accounts for 88.52 percent of the accommodation business. A very few

hotels i.e. 11.48 percent are offering the rooms at luxury ranges to its guests.

Table 4.29: Number of hotels and lodges offering rooms at economy, budget and

luxury category at Tezpur

Tariff range vis-à-vis

rooms

Ranges of rooms

tariff

( Rs.)

No. of hotels and

lodges

Economy <500 84

Budget 500-1000 24

Luxury >1000 In 14 hotels

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff ranges.

Source: Field survey, 2008-2009

4.3.5 Kaziranga

Kaziranga National Park is one of the famous eco- tourist destination of Assam

covering an area of 849.8 sq. km of alluvial plain of the Brahmaputra river. Situated in

the districts of Golaghat and Nagaon, Kaziranga is a national park and a world heritage

site and hotspots of regional biodiversity. Apart from its flagship species one horned

rhinoceros, the national park is also the home of varieties of wildlife like wild buffalo,

Elephant, Swamp deer, Hog deer, Barking deer, Sambar, Wild bear, Tiger, etc. The

park has recorded 34 numbers of mammals and 480 species of birds out of which 8

varieties of birds are globally threatened. Birds like Egrets, Pond herons, River tern,

Black necked storks, Pelican partridges, Bengal florican stork, Pied horn bill and

Fishing eagle are of abundance. One of the important features of the park is that it is

the best wildlife parks in India for easy wildlife sighting and having regular facility of

elephant and jeep safari (October to April) (Bhattacharya, 2004). For the above

reasons, the park attracts both domestic and foreign tourists regularly and the number

of tourists, both domestic and foreign is increasing every year (Table 4.30). Thus,

there is a growing demand of accommodation for tourists in all categories viz.

economy, budget and luxury.

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The Assam Tourism Development Corporation (ATDC) in association with

private entrepreneurs has taken the luxury vessel project between Kaziranga and

Guwahati. The Ministry of Tourism, Government of India and United Nations

Development Programme has also developed a tourism village named Durgapur to

depict the Assamese culture for the tourist in the Kaziranga National Park. In 2006,

Central Government has sanctioned an amount of Rs 44.95 lacs for development of

adventure tourism in Kaziranga.

State Government’s continuous effort in organizing elephant festival at

Kaziranga has helped in increasing both domestic and foreign tourists flow to the park

(Table 4.30). The accommodation and food facilities are also availed by the transit

Table 4.30: Volume of tourist traffic to Kaziranga, 2004-2010

Year Domestic tourist Foreign tourist Total

2004-05 67,719 5,154 72,873

2005-06 72,362 4,711 77,073

2006-07 69,574 6,493 76,067

2007-08 53,640 6,106 59,746

2008-09 1,00,384 5,767 1,06,152

2009-10 1,05,264 7,580 1,12,844

Source: Directorate of Kaziranga National Park, Kohora

passengers who travel from eastern Assam to Guwahati or vice versa by private

vehicles. The presence of Numaligarh Refinery nearing to the Kaziranga National Park

also adds to the demand of accommodation.

Field investigation on the status of accommodation sector at Kaziranga reveals

that in and around the park there are 32 accommodation units having total room

capacity of 314 under different categories, i.e. economy, budget and luxury to suit the

needs of the tourists. With the central and state governments’ continuous effort for

tourism infrastructure development has helped to amplify both domestic and foreign

tourists every year. Investment of private sector in this tourists spot also helps in

changing the tourism scenario of the area. Some of the prominent private sector hotels

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have already started their business at Kaziranga. The field survey shows that the first

accommodation unit came up in the year 1960 with five rooms under the initiative of

Forest Department. Later on the unit was handed over to Tourism Department,

Government of Assam and was named as Banani Tourist Lodge. With the gradual

increase of domestic as well as foreign tourists there were more demand of rooms and

accordingly accommodation units have increased. However, no remarkable

development of accommodation sector has been seen till the year 2000. The

announcement of Open Air Policy of Civil Aviation, by Government of India in 1995,

has further accelerated the movement of tourist towards Kaziranga. Similarly, abolition

of restricted area permit has also accelerated the movement of foreign tourists towards

Kaziranga. Therefore, it fueled more demand of accommodation units in the destination.

As a result, between the period from 2000 to 2005, 11 number of accommodation units

came up with a total room capacity of 72. The period of 2005 onward 14

accommodation units were added up with a room capacity of 164 to make up the

accommodation units tally to 32 (Table 4.31). Thus, the year 2000 can be treated

Table 4.31: Trends of development of hotels and lodges at Kaziranga

Period No. of hotels and lodges established

Percentage of hotels and lodges

1960-1965 2 6.25

1965-1970 Nil -

1970-1975 Nil -

1975-1980 1 3.12

1980-1985 1 3.12

1985-1990 Nil -

1990-1995 2 6.25

1995-2000 1 3.12

2000-2005 11 34.39

2005 onwards 14 43.75

Total 32 100.00

Source: Field Survey, 2008-2009

as an important point in the time scale regarding the development of accommodation

units at Kaziranga. Out of the 32 accommodation units, 4 of the units are lodges, 3 of

them provide rooms with breakfast and the rest have one or other facilities like

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restaurant, bar, room service, banquet halls, safe deposit lockers, hot and cold running

water swimming pool, laundry, travel agency, foreign currency exchange facilities, valet

runners, etc. Field study also reveals that the people living nearby the park converted

some parts of their house to hotel or lodge and run with some domestic help to provide

ethnic food to the tourists. Out of total accommodation units available, 6 of them can be

classified as 3 star hotel, 2 can be classified as 4 star hotel and 7 of them as 2 star hotel,

based on the facilities provided by these accommodation units to its guests. However

there are two classified 3 star hotels at Kaziranga by the Ministry of Tourism,

Government of India. Discussions with the owners of the hotel revealed that some of

them have applied for classification and some of them are willing to apply in due course

of time for star classification.

Hotels and lodges of Kaziranga are getting maximum share of business from

recreational tourists which account for 96.97 percent (Table 4.32). The other category is

constituted by corporate with a marginal share of 3.03 percent. Kaziranga national park

is also surrounded by a number of tea gardens which makes the area beautiful and has

been also able to attract nature lovers not only from India but also from foreign

countries.

Table 4.32: Nature of occupancy pattern of hotels and lodges at Kaziranga

Clientele Hotels and lodges receiving

different types of clientele

Percentage of

business

Corporate 1 3.03

Business Nil -

Recreational tourist 32 96.97

Medical tourist Nil -

Official job Nil -

Transit passenger Nil -

*Some hotels and lodges have been receiving clientele from multiple sources.

Source: Field survey, 2008-2009

The average room occupancy of the hotels and lodges at Kaziranga is 36.09

percent. The accommodation units receive lowest annual average room occupancy in

comparison to the other cities/towns of Assam (Table 4.33). Though, hotels and lodges

of Kaziranga receive a good number of domestic and international tourists every year,

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the business is seasonal in nature. Hotel business at Kaziranga is mainly dependant on

the National Park. The park is open only for about six months in a year (November-

April), as nature does not permit it to be opened throughout the year, especially during

the monsoon season, when the Park faces annual recurrent flood. Most of the Park

remains partially submerged during rainy season and the animals migrate to the higher

ground of adjacent Karbi Anglong district, located in the southern direction of the park.

As during this period entry to the Park is restricted for the tourists, therefore there is no

flow of tourist to the area and the hotels and lodges have to struggle for their survival.

During the period from November to April the hotels and lodges used to do brisk

business of rooms and at times, during this period hotels and lodges get nearing 100

percent room occupancy.

Table 4.33: Average occupancy of hotels and lodges at Kaziranga

Number of hotels

and lodges (fi)

Percentage of

occupancy (xi)

fixi Average occupancy

percentage of hotels

and lodges (∑fixi/∑fi)

1 20 20

36.09

2 25 50

9 30 270

7 35 245

8 40 320

1 45 45

3 50 150

1 55 55

∑ fi = 32 ∑ fixi = 1155

Where ∑ fi = Total number of hotels and lodges, and ∑ fixi = Sum of the product of number of hotels and the occupancy percentage

Source: Field survey, 2008-2009

The hotels and lodges at Kaziranga offer different types of rooms with different

room tariff. The hotels and lodges of Kaziranga have only 7 single rooms and on the

other hand there are 273 double rooms (Table 4.34). Field survey reveals that these

double rooms are on twin sharing basis having two separate single beds. These double

rooms can also be sold as single room when situation demands. At Kaziranga,

dormitories are also in demand as groups of schools, colleges and university students

visit the park as excursionists. As per as air conditioned room is concerned, there are

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Table 4.34: Availability of rooms in hotels and lodges at Kaziranga

Types of

rooms

No. of

rooms

No. of non

a.c rooms

% of non

a.c rooms

No. of a.c

rooms

% of a.c

rooms

Single 7 7 100.00 Nil -

Double 273 165 60.44 108 39.56

Triple 18 18 100.00 Nil -

Dormitory 11 11 100.00 Nil -

Suite 5 Nil - 5 100.00

Total 314 201 113

Source: Field survey, 2008-2009

35.99 percent of air conditioned rooms available in the category of single, double and

suite rooms combined. Unlike other cities / towns of important nodes of Assam, the

hotels and lodges of Kaziranga do not provide any type of room below Rs. 100.00. On

the other hand, rooms at economy category are also limited (Table 4.35 and 4.36). The

Table 4.35: Availability of rooms at various tariff ranges in hotels and lodges at

Kaziranga

Category Room

tariff (Rs.)

Number of hotels and lodges offering

Single room

Double room

Triple room

Dormitory Suite room

Total

Eco

no

my

<100 Nil Nil Nil Nil Nil Nil

100-200 2 Nil Nil Nil Nil 2

200-300 3 1 Nil Nil Nil 4

300-400 Nil 2 Nil 1 Nil 3

400-500 1 5 Nil Nil Nil 6

Total 15

Bu

dg

et

500-600 3 5 Nil 1 Nil 9

600-700 1 6 Nil Nil Nil 7

700-800 2 2 1 Nil Nil 5

800-900 2 4 2 Nil Nil 8

900-1000 Nil 1 Nil Nil Nil 1

Total 30

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Lux

ury

>1000 6 13 Nil 1 2 22

Total 22

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff ranges.

Source: Field survey, 2008-2009

picture of the rooms at luxury category range is different from other cities/towns of

Assam. Here in Kaziranga more number of rooms are present in luxury category than

the economy and budget category. Lowest tariff of the single room stands at Rs. 100.00

and Rs. 200.00 for double room including tax.

Table 4.36: Number of hotels and lodges offering rooms at economy, budget and

luxury category at Kaziranga

Tariff range vis-à-vis rooms Ranges of rooms tariff

( Rs.)

Hotels and

lodges

Economy <500 15

Budget 500-1000 30

Luxury >1000 In 22 hotels

*Some of the hotels and lodges offer same types of rooms which belong to more than one

tariff ranges.

Source: Field survey, 2008-2009

It can be concluded that 32.83 percent of the hotels at Kaziranga are offering

luxury rooms whereas there are 22.39 percent of them provides rooms at economy

range. The situation of room availability and tariff ranges at Kaziranga is different from

that of the other cities and towns of Assam. Luxury category of rooms has dominance

over economy range. Apart from it the destination is also suffers from seasonality.

4.3.6 Sivsagar

Sivsagar is the district headquarters of the Sivsagar district. This is the ancient

city of Ahom glory, having a numbers of historical monuments that have been able to

catch the attractions to the domestic as well as foreign tourists. A good number of

historical monuments were constructed by the Ahom rulers in Sivsagar district during

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their regime. They are Shiva dol (temple), Vishnu dol, Devi dol, Rang Ghar (a pavilion

for royal entertainment), Kareng Ghar (seven storied palace with three underground and

four over ground stories) and Talatal Ghar (or the Rangpur palace), etc. Apart from

them planning effort of Ahom rulers can be seen through Joysagar temples and tank,

Charaideo maidam (burial vault of kings, members of royal families), Namdong stone

bridge (carved out of a single boulder in1703), etc. Sivsagar is also famous for Ajan Pir

Dargah which is the holy place for both the Hindus and the Muslims. Other attractions

of the place include the Panidihing Bird Sanctuary. Sivsagar also has to its credit the

headquarters of Oil and Natural Gas Corporation (ONGC), Rajiv Gandhi Institute of

Petroleum Technology which is an institute of National importance, Rajiv Gandhi

Cooperative University and Regional Chemical Laboratory of ONGC. It is also the

business hub in eastern Assam, especially due to its connectivity with neighbouring

state of Nagaland. It has been able to attract both domestic and foreign tourists, but flow

of tourist traffic is low due to the lack of better exposure (Table 4.37).

Table 4.37: Inflow of tourists to Sivsagar District, 2000-08

Year Domestic tourist Foreign tourist Total

2000-01 64520 18 64538

2001-02 114799 51 114850

2002-03 172839 108 172947

2003-04 146955 472 147472

2004-05 915230 390 915620

2005-06 607266 634 607900

2006-07 639194 806 640000

2007-08 559390 610 560000

*Data of domestic tourist mostly incorporates day tourists

Source: Archaeological Survey of India, Sivsagar office

Hotel business at Sivsagar town was started in the year 1970 and grew very

steadily till 1990. Door to door survey of the accommodation status at Sivsagar reveals

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the presence of 17 hotels and lodges with a total room capacity of 367 (Table 4.38).

Pace of growth of the sector is found to be more in between 2000 to 2005.

Table 4.38: Trends of development of hotels and lodges at Sivsagar town

Period No. of hotels and

lodges established

Percentage of hotels

and lodges

1970-1975 1 5.88

1975-1980 1 5.88

1980-1985 1 5.88

1985-1990 1 5.88

1990-1995 4 23.53

1995-2000 2 11.77

2000-2005 5 29.41

2005 onwards 2 11.77

Total 17 100.00

Source: Field survey, 2008-2009

Out of the 17 accommodation units, 10 units are offering only lodging facility, 3

of them offering rooms with a table d’hôte lunch and dinner in the form of canteen and

the rest 4 of them have facilities like restaurant, bar, room service, travel agency,

running hot and cold water, barber shop, etc.

Though, there are no officially classified hotel at Sivsagar, 2 hotels can be

brought under the purview of classified as 3 star hotel and one as 2 star hotel by

looking at the facilities they provide to the guests. The hotels and lodges of Sivsagar

town receive maximum business i.e. 58.62 percent from the corporate sector. These

corporate are from pharmaceutical companies, fast moving consumer goods as well as

from Oil and Natural Gas Corporation Limited. On the other hand the hotels and lodges

are also receiving a good share of business from recreational tourists which accounts for

31.03 percent of the total business due to rich historical background of Sivsagar.

Discussions with the owner of the accommodation units revealed that accommodation

units get very good room occupancy during Sivaratri mela (fare) that takes place during

at Sivadol during the month of February/March which attract domestic and even foreign

devotees of Lord Siva (Table 4.39).

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Table 4.39: Nature of occupancy in hotels and lodges at Sivsagar town

Clientele Hotels and lodges receiving different types of clientele

Percentage of business

Corporate 17 58.62

Business 2 6.90

Recreational tourist 9 31.03

Medical tourist Nil -

Official job 1 3.45

Transit passenger Nil -

*Some hotels and lodges have been receiving clientele from multiple sources.

Source: Field survey, 2008-2009

The hotels and lodges of Sivsagar town gets an average occupancy of 39.41

percent on yearly basis. The occupancy of hotels and lodges almost remain same

throughout the year except during Sivaratri mela (February/March) when the hotels and

lodges receive a good volume of room business (Table 4.40).

Table 4.40: Average occupancy of hotels and lodges at Sivsagar town

Number of hotels

and lodges (fi)

Percentage of

occupancy (xi)

fixi Average occupancy

percentage of hotels

and lodges (∑fixi/∑fi)

4 25 100

39.41

3 30 90

2 35 70

2 40 80

4 50 200

1 60 60

1 70 70

∑ fi =17 ∑ fixi = 670

Where ∑ fi = Total number of hotels and lodges, and ∑ fixi = Sum of the product of

number of hotels and the occupancy percentage

Source: Field survey, 2008-2009

Like other cities/towns of Assam, Sivsagar also offer different types of rooms

with different tariff to suit the needs of its guests (Table 4.41). However, Sivsagar offer

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more double rooms to its guests in comparison to other category (64.85 percent). On the

other hand there are only 16.62 percent of air conditioned rooms available to its guests.

Table 4.41: Availability of rooms in hotels and lodges at Sivsagar town

Types of rooms No. of

rooms

No. of non

a.c rooms

% of non

a.c rooms

No. of a.c

rooms

% of a.c

rooms

Single 109 103 94.50 6 5.50

Double 238 193 81.09 45 18.91

Triple 8 8 100.00 Nil -

Dormitory 2 2 100.00 Nil -

Suite 10 Nil - 10 100.00

Total 367 306 61

Source: Field survey, 2008-2009

Hotels and lodges of Sivsagar town are offering different types of rooms at

various tariff ranges. The low priced single room is available at Rs. 70.00 and double

room at Rs. 120.00 including taxes. On the other hand maximum room tariff for a suite

room stands at Rs.4500.00 excluding taxes. The luxury rooms are available only in

14.29 percent of the hotels and lodges at Sivsagar town (Table 4.42). Interaction with

hotel and lodge owners revealed that economy room sales are much higher in

comparison to luxury category rooms. Therefore, there is good growth prospect of

economy category rooms at Sivsagar town.

Table 4.42: Availability of rooms at various tariff ranges in hotels and lodges at

Sivsagar town

Category Room

tariff (Rs.)

Number of hotels and lodges offering

Single

room

Double

room

Triple

room Dormitory

Suite

room Total

Eco

no

my

<100 5 Nil Nil Nil Nil 5

100-200 7 4 Nil Nil Nil 11

200-300 3 8 1 Nil Nil 12

300-400 4 3 1 Nil Nil 8

400-500 Nil 2 Nil Nil Nil 2

Total 38

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Bud

get

500-600 2 1 Nil Nil Nil 3

600-700 Nil Nil Nil Nil Nil -

700-800 1 2 Nil Nil Nil 3

800-900 1 Nil Nil Nil Nil 1

900-1000 2 1 Nil Nil Nil 3

Total 10

Lux

ury

>1000 2 4 Nil Nil 2 8

Total 8

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff

ranges.

Source: Field survey, 2008-2009

Field investigation also reveals that 67.86 percent of hotels and lodges of

Sivsagar town are offering rooms to its guest at economy category (Table 4.43). Only

14.29 of the hotels are offering luxury category rooms to the guests. Therefore it can be

concluded that the hotel business at Sivsagar town has the dominance of economy

category of hotels and lodges than the luxury category of hotels.

Table 4.43: Number of hotels and lodges offering rooms at economy, budget and

luxury category at Sivsagar town

Tariff range vis-à-vis rooms

Ranges of rooms tariff

( Rs.)

Hotels and lodges

Economy <500 38

Budget 500-1000 10

Luxury >1000 In 8 hotels

*Some of the hotels and lodges offer same types of rooms which belong to more than one

tariff ranges

Source: Field survey, 2008-2009

4.3.7 Dibrugarh

Dibrugarh is one of the important towns of eastern Assam. It has excellent

accessibility as it is well connected with the rest of the country by road, rail, and air

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network. It acts as a nodal point of education, trade and commerce and administration of

Dibrugarh district as well as western Assam. Tea and oil are the major revenue sources

for the district. Many tea gardens of the district are more than 100 years old. The entire

district has many oil and natural gas rigs owned by the Oil India Limited and Oil and

Natural Gas Commission. The headquarters of Oil India Limited is located in Duliajan,

a town 50 km from Dibrugarh Town. In fact the legacy of tea and oil products in the

area was initiated by British in the colonial era.

The district is also home to the Padumani-Bherjan-Borajan Wildlife Sanctuary,

which was established in 1999. There are other major public sector industries running

in the vicinity of the district like Assam Gas Company at Duliajan, Brahmaputra Valley

Fertilizer Corporation at Namrup, Thermal Power Corporation at Namrup, etc.

Dibrugarh has also been able to attract a feeble flow of foreign tourists coming

to the state due to its available urban infrastructure and air connectivity (Bhattacharya,

2004). The town has a number of important educational institutions like Dibrugarh

University, Assam Medical College, Regional Medical Research Centre, Dibrugarh

Poly-Technique, etc. apart from housing a number of industries in an around the town.

Tea gardens, wildlife sanctuary, medical facilities like Assam Medical College and

hospital and number of nursing homes add to the flow of different categories of tourists

to the town which has brought potential of raising the accommodation units in the town

in different categories and have the potential of bringing more accommodation units

with different types of services.

There are 47 hotels and lodges at Dibrugarh with a total room capacity of 769.

The first unit of accommodation in the town came up as back as 1945 and then keeps on

adding accommodation units at a very slow pace till 1975. After 1975 hotel business

started accelerating and reached its momentum during 2000 to 2005, adding 10 units to

its total accommodation units of the town (Table 4.44). Accommodation units are

scattered all over the town but maximum numbers of lodges (21 numbers) spread over a

radius of two kilometers of Assam Medical College Hospital. Out of the total 47

accommodation units at Dibrugarh town, 30 units are lodges which is offering only

stay facilities, 4 accommodation units is offering rooms along with table d’hôte lunch

and dinner in the form of canteen where the guests have to order at a specified time to

avail it. On the other hand, 13 accommodation units are offering rooms along with one

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Table 4.44: Trends of development of Hotels and Lodges at Dibrugarh town

Period No. of hotels and

lodges established

Percentage of hotels and

lodges

1945-1950 1 2.13

1950-1955 1 2.13

1955-1960 - -

1960-1965 1 2.13

1965-1970 1 2.13

1970-1975 3 6.38

1975-1980 5 10.63

1980-1985 5 10.63

1985-1990 4 8.51

1990-1995 6 12.77

1995-2000 4 8.51

2000-2005 10 21.28

2005 onward 6 12.77

Total 47 100.00

Source: Field survey, 2008-2009

or other facilities like restaurant, bar, room service, swimming pool, 24 hours hot and

cold running water, travel agency, valet service, foreign exchange facilities, safe deposit

locker, etc. There are two officially classified hotels, one two star and one three star at

Dibrugarh town. However, apart from these two another 3 hotels can be brought under

the preview of classified 3 star category, 5 hotels in the 2 star category based on

facilities provided by these hotels to its guests.

The hotels and lodges of Dibrugarh town receive maximum business from

corporate which accounts for 40.98 percent of the clientele (Table 4.45). The corporate

are the representatives from pesticide companies, automobile companies,

pharmaceutical companies, fast moving consumer goods companies, etc. The hotels and

lodges are also getting a good share of business from medical tourists because of the

health services provided by Assam Medical College Hospital situated at the town. Apart

from the Assam Medical College Hospital, the town has also a good numbers of private

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nursing homes and medical tourist accounts for 32.79 percent out of the total

accommodation business.

Table 4.45: Nature of occupancy pattern in hotels and lodges at Dibrugarh town

Clientele Hotels and lodges receiving different types of clientele

Percentage of business

Corporate 25 40.98

Business 7 11.48

Recreational tourist 8 13.11

Medical tourist 20 32.79

Official job 1 1.64

Transit passenger Nil -

*Some hotels and lodges have been receiving clientele from multiple sources.

Source: Field survey, 2008-2009

At Dibrugarh town hotels and lodges are also doing comparatively good

business having average room occupancy of 48.06 percent annually (Table 4.46).

Table 4.46: Average occupancy of hotels and lodges at Dibrugarh town

Number of

hotels and

lodges (fi)

Percentage of

occupancy (xi)

fixi Average occupancy

percentage of hotels

and lodges (∑fixi/∑fi)

1 20 20

48.06

1 25 25

2 30 60

4 35 140

6 40 240

7 45 315

10 50 500

3 55 165

11 60 660

1 65 65

1 70 70

∑ fi = 47 ∑ fixi = 2260

Where ∑ fi = Total number of hotels and lodges, and ∑ fixi = Sum of the product of number of hotels and the occupancy percentage

Source: Field survey, 2008-2009

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Occupancy of hotels and lodges remain almost the same throughout the year. This may

be the result of dominance of medical tourist that are devoid of seasonality.

Altogether 769 rooms are offered to its guests at Dibrugarh town. The share of

double room is 73.08 percent followed by 24.05 percent single rooms (Table 4.47).

Table 4.47: Availability of rooms in hotels and lodges at Dibrugarh town

Types of

rooms

No. of

rooms

No. of non

a.c rooms

% of non

a.c rooms

No. of a.c

rooms

% of a.c

rooms

Single 185 168 90.81 17 9.19

Double 562 478 85.05 84 14.95

Triple 13 13 100.00 Nil -

Dormitory 2 2 100.00 Nil -

Suite 7 Nil - 7 100.00

Total 769 661 108

Source: Field survey, 2008-2009

However, other types of rooms like triple, dormitory and suite rooms are also available

to offer to its guests. There are 7 numbers of suite rooms available at Dibrugarh town.

Out of the 769 rooms, 108 numbers of rooms are air conditioned (14.04 percent).

However the majority of rooms in all categories (85.96 percent) are in the non- air

conditioned category.

The hotels and lodges of Dibrugarh town offer rooms at various tariff ranges to

suit the needs of its guests. Majority of the rooms i.e. 72.97 percent of the total available

rooms are in the economy range where as there are only 8.78 percent of the total

room are in the luxury range (Table 4.48). Though the single rooms are available

Table 4.48: Availability of different category of rooms at various tariff ranges in

hotels and lodges at Dibrugarh town

Category Room tariff

(Rs.)

Number of hotels and lodges offering

Single

room

Double

room

Triple

room

Dormitory Suite

room

Total

Eco

no

my

>100 16 1 Nil Nil Nil 17

100-200 15 15 2 Nil Nil 32

200-300 9 20 3 1 Nil 33

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300-400 4 10 2 1 Nil 17

400-500 1 7 1 Nil Nil 9

Total 108

Bu

dg

et

500-600 2 4 Nil Nil Nil 6

600-700 1 7 Nil Nil Nil 8

700-800 1 3 Nil Nil Nil 4

800-900 2 4 Nil Nil Nil 6

900-1000 1 2 Nil Nil Nil 3

Total 27

Lux

ury

>1000 2 5 Nil Nil 6 13

Total 13

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff

ranges.

Source: Field survey, 2008-2009

at various tariff ranges, Rs. 50.00 is the lowest tariff at which single rooms are sold and

double room rated at Rs. 80.00 inclusive of taxes. There are 6 hotels that are offering 7

suite rooms and the highest tariff of suite room stands at Rs. 9000.00 excluding taxes.

From the survey it can be concluded that economy and budget category of hotels

and lodges are dominating the hotel business at Dibrugarh town which together

accounts for 91.22 percent accommodations of the town. Hotel business in the luxury

segment is very less and only accounts for 8.78 percent (Table 4.49). This shows that

Table 4.49: Number of hotels and lodges offering rooms at economy, budget and

luxury category at Dibrugarh town

Tariff range vis-à-vis

rooms

Ranges of rooms tariff

( Rs.)

Hotels and lodges

Economy <500 108

Budget 500-1000 27

Luxury >1000 In 13 hotels

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff

ranges.

Source: Field survey, 2008-2009

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the hotel business is flourishing in the economy and the budget category and hotels and

lodges in this category are doing brisk business. This indicates that the majority of

tourists visiting Dibrugarh town are from the medium and low income group.

4.3.8 Tinsukia

Tinsukia is an important business centre in the easternmost part of Assam. It is

situated at 480 kilometers north east of Guwahati and 84 kilometers away from the

border with Arunachal Pradesh. It is the administrative headquarters of Tinsukia

District. Hailed as the eastern business capital of Assam, the place has a heady mix of

Assamese, Bengali and Hindi-speaking people. Tinsukia is also a major railhead of

Assam. Presently it houses a railway junction of Assam. Tinsukia acts as a link to many

towns of the north east India. The district is known for its best quality tea production,

wood related products like Kitply, Merino ply, National ply, etc. Chamber Road,

situated at the centre of the town, is the oldest area of business activities especially

grocery. Grocery items are exported from here to neighboring state of Arunachal

Pradesh.

Tinsukia is well connected by national highway and railway. It is only 480 km

by road from Guwahati, the capital city of Assam. The nearest airport is at Mohanbari

(Dibrugarh) which is about 40 km from Tinsukia with daily connection from

Delhi/Guwahati and Kolkata.

The only Railway Heritage Museum of North East India is located at Tinsukia.

The Guijan entry point of Dibru Saikhowa National Park is located only at a distance of

10 km to the north of Tinsukia town. The park is rich in species of wild elephants, white

winged wood duck and other aquatic avifauna, water buffalo and feral horse. The

Digboi Refinery which is the oldest refinery of Asia is few kilometers from the Tinsukia

town. The Shiv Dham is a big temple of Lord Shiva with a pond in the middle of the

town. The Tilinga Mandir (Bell temple), located at Bordubi, about 9 kilometers from

Tinsukia town, is another Shiva temple where thousands of people visit every day. This

temple is famous for its numerous bells (tilinga) tied at the branches of a giant peepal

tree to fulfill the wishes of devoties.Tinsukia also houses a number of industries like –

Indian Oil Corporation Limited(AOD) at Digboi (Oldest Refinary of Asia) ,Coal India

Ltd. at Margherita, Coal field at Ledo, Bordoloi and Tipong. Oil India Ltd. have oil

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fields in and around Digboi, Makum, Lakhipathar area, bottling Plant at Goponari,

Hindustan Liver Ltd., Cosmetic Industry with an investment of Rs. 200 crores is also

located here. Export oriented industries like Steel Worth, oil supported industries like

Manish Leather Manufacturing, Joyshree Mines manufacturing, Manila Ropes and other

industries at Borguri industrial estate provide a sound industrial base to the economy of

the town. Apart from it construction and repairing workshops for bodybuilding of bus

and trucks at Tinsukia, Doomdooma, Digboi and Margherita, food processing industry

(40 nos.), fruit processing industry (10 nos.), agro based industry (72 nos.), plastic based

industry (5 nos.), petroleum based industry (22 nos.), electronic industry (5 nos.), tea

based industry (57 nos.), forest based industry (66 nos.) and 120 tea garden of the

district place it as one of the important revenue generating districts of the state.

Tinsukia, being a business and industrial hub along with touristic potential has

created the demand for the accommodation sector. Thus there is an increase in the hotel

business of the town. The journey of hotel business started in the year 1968 at Tinsukia.

After that there was a slow and gradual development of accommodation unit till 1990.

The period of 1990-2000 shows 32 percent growth rate of accommodation. After 2005

growth rate stands at 24 percent (Table 4.50). There are all together 25 hotels and

Table 4.50: Trends of development of hotels and lodges at Tinsukia town

Period No. of hotels and

lodges established

Percentage of hotels and

lodges

1965-1970 1 4

1970-1975 - -

1975-1980 2 8

1980-1985 4 16

1985-1990 2 8

1990-1995 5 20

1995-2000 3 12

2000-2005 2 8

2005 onward 6 24

Total 25 100

Source: Field survey, 2008-2009

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lodges at Tinsukia having a room capacity of 685. The varieties of rooms that are offered

to the guests are single room, double room, triple room, dormitory and suites. Out of the

total 25 accommodation units 11 are in the category of lodge, 4 of them are having

canteen facilities for lunch and dinner having a common menu for all. Any resident guest

wishes to have the food has to place order before specified time. The food is served at a

particular time in a common dining room with basic facilities of only table and chairs.

The rest 10 hotels provide some of the facilities like restaurant, bar, room service,

laundry, travel agency, etc. Out of these 10 hotels 5 of them can be brought under the

purview of classified hotel ranging from 1 star to 3 star categories based on facilities they

offer to the guests. However, there is no officially classified hotel at Tinsukia town.

The hotels and lodges of Tinsukia town are getting business mainly from

corporate and business tourists. The share of business from the corporate is more which

alone account for 53.13 percent (Table 4.51). Corporate are mainly from pesticide

companies, automobile companies, tea industries, pharmaceutical companies, consumer

goods companies, insurance companies, etc. Tinsukia being the business hub of eastern

Table 4.51: Nature of occupancy pattern in hotels and lodges at Tinsukia town

Clientele Hotels and lodges receiving

different types of clientele

Percentage of

business

Corporate 17 53.13

Business 13 40.62

Medical tourist 02 06.25

Recreational tourist Nil -

Official job Nil -

Transit passenger Nil -

*Some hotels and lodges have been receiving clientele from multiple sources.

Source: Field survey, 2008-2009

Assam, it receives a good number of traders from the nearby Arunachal Pradesh.

Tinsukia is also known for its coal business. Therefore a good percentage of business

(40.62 percent) is being generated by the business tourists for the hotels and lodges of

Tinsukia. Altogether, the hotels and lodges of Tinsukia generate 93.75 percent of

business from corporate and business tourists. The hotels and lodges of Tinsukia town

register average room occupancy of 42.20 percent on yearly basis. Since Tinsukia is a

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business hub the hotels and lodges receives guests throughout the year almost at the

same intensity (Table 4.52).

Table 4.52: Average occupancy of hotels and lodges at Tinsukia town

Number of hotels and lodges (fi)

Percentage of occupancy (xi)

fixi Average occupancy percentage of hotels and

lodges (∑fixi/∑fi)

5 30 150

42.20

4 35 140

7 40 280

2 45 90

3 50 150

3 60 180

1 65 65

∑ fi = 25 ∑ fixi = 1055 Where ∑ fi = Total number of hotels and lodges, and ∑fixi = Sum of the product of

number of hotels and the occupancy percentage. Source: Field survey, 2008-2009

So far, status of the hotel rooms is concerned; there are 685 rooms at Tinsukia

town. Out of these total rooms, 383 (55.91 percent) are in the category of double room

followed by 273 (39.85 percent) single room (Table 4.53). However, the town is also

offering triple room, dormitory and suite rooms to its guests. Out of the total available

rooms, only 85 rooms are air conditioned. This shows that the maximum business

(87.59 percent) is done through non air conditioned rooms.

Table 4.53: Availability of rooms in hotels and lodges at Tinsukia town

Types of

rooms

No. of

rooms

No. of non

a.c rooms

% of non

a.c rooms

No. of a.c

rooms

% of a.c

rooms

Single 273 252 92:31 21 7.69

Double 383 326 85.12 57 14.88

Triple 21 21 100 Nil -

Dormitory 01 01 100 Nil -

Suite 07 Nil - 07 100

Total 685 600 85

Source: Field survey, 2008-2009

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To attract guests the hotels and lodges of Tinsukia town offer different class and

category of rooms at a range of tariff (Table 4.54). Though the rooms are sold at

different tariff, the lowest tariff of single room stands at Rs. 50.00 and Rs. 95.00 for

double inclusive of taxes. It has been found that hotels with lesser room tariff

accommodate more rooms and higher tariff with less number of rooms. Majority of the

hotels and lodges (63.74percent) are offering rooms at economy category. On the other

hand only 5.49 percent of hotels are offering rooms at luxury category.

Table 4.54: Availability of different category of rooms at various tariff ranges

in hotels and lodges at Tinsukia town

Category

Room

tariff

(Rs.)

Number of hotels and lodges offering

Single

room

Double

room

Triple

room Dormitory

Suite

room Total

Eco

no

my 1100 6 1 - - - 7

100-200 7 7 3 1 - 18

200-300 8 7 1 - - 16

300-400 4 6 1 - - 11

400-500 - 6 - - - 6

Total 58

Bud

get

500-600 2 3 1 - - 6

600-700 3 2 1 - - 6

700-800 2 4 - - - 6

800-900 1 4 - - 1 6

900-1000 1 2 - - 1 4

Total 28

Lux

ury

>1000 - 2 - - 3 5

Total 5

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff ranges.

Source: Field survey, 2008-2009

The hotel business at Tinsukia town is dominated by economy category of hotels

and lodges which alone accounts for 63.74 percent (Table 4.55). On the other hand, a

very less number of hotels (5.49 percent) are offering luxury rooms to its guest.

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Table 4.55: Number of hotels and lodges offering rooms at economy, budget and

luxury category at Tinsukia town

Tariff range

vis-à-vis rooms

Ranges of rooms

tariff (Rs.)

Hotels and lodges

Economy <500 58

Budget 500-1000 28

Luxury >1000 In 5 hotels

*Some of the hotels and lodges offer same types of rooms which belong to more than

one tariff ranges.

Source: Field survey, 2008-2009

It implies that the hotel business at Tinsukia town has the dominance of

economy category over luxury category. The prospect of growth of economy category

of hotels and lodges at Tinsukia is more in the near future.

4.3.9 Silchar

Silchar is the headquarters of Cachar district in southern Assam and the second

largest town of the state. It consequently witnesses the sizable proportion of trade and

commercial activity. Silchar is also an educational hub of southern Assam, having seat

of learning, like the Assam University, Silchar Medical College, National Institute of

Technology (NIT) apart from other educational institutes. It is the economic gateway to

the neighboring states of Mizoram, Manipur and Tripura. The geographical positioning

of Silchar makes it an important business point. Silchar also have some of the important

tourist places in its vicinity like monuments of Khaspur, the Kachakanti temple,

Bhubeneswar temple, Borail Wild Life Sanctuary, Shahid Minar, etc., to offer to its

tourists. All these attributes provide a basis for the growth and development of

hospitality sector in the town,

Field investigation in hospitality sector of Silchar reveals the presence of 40

hotels and lodges at the town (Table 4.56). First accommodation unit was setup in the

year 1955 in the Premtola locality of the town. The unit was started with 2 rooms only

with an investment of Rs.30.00. The second accommodation unit came up in 1956 with

2 rooms in Lakshipur road area. The journey of the hotel business started with 2 rooms

in 1955 which increased to 40 hotels and lodges with 923 room capacity. However,

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pace of hotel development was slow till 1990 which accounts for 14 hotels. With the

gradual growth of easy, speedy travel facilities and setting up of industries like Cachar

paper mill, educational institutions of national repute like National Institute of

Technology (formerly Regional Engineering college), Silchar Medical College Hospital,

Table 4.56: Trends of development of hotels and lodges at Silchar

Period No. of hotels and lodges

established

Percentage of hotels

and lodges

1955-1960 2 5

1960-1965 2 5

1965-1970 1 2.5

1970-1975 1 2.5

1975-1980 1 2.5

1980-1985 3 7.5

1985-1990 4 10

1990-1995 3 7.5

1995-2000 4 10

2000-2005 7 17.5

2005 onwards 12 30

Total 40 100

Source: Field survey, 2008-2009

Assam University, the town has gained momentum and started receiving more number

of tourists/ strangers than ever before. The survey shows that the hotel business gained

momentum during the mid nineties. At the beginning of this century, hotel business

picked up its height and within a span of nine years 19 new hotels and lodges was

added. Though there is an increased in the numbers of hotels and lodges but majority

(87.5 percent) of the hotel and lodges are in the unorganized sector. There are no

officially classified hotels at Silchar as per the official record of Ministry of Tourism,

Government of India. However very few (12.5 percent) of the hotels can be brought

under preview of classified hotels (ranging from 2 star to 3 star) as per their facilities

extended to the guests. The majority of the accommodation units (62.5 percent) are

providing only accommodation facilities, rest 37.5 percent providing some of the

services like restaurant, bar, room service, laundry, travel agency etc.

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The dominating clientele in the hotel business of Silchar are the business tourists

which accounts for 43.84 percent of the total clientele. As Silchar is the business hub,

the people from nearby states like Meghalaya, Mizoram, Manipur and Tripura come to

Silchar town for their business activities who occupies majority of the rooms in the

hotels and lodges. Apart from business clientele a good number of rooms are also

occupied by the corporate who accounts to 35.62 percent (Table 4.57). Since the town is

a business hub, a good number of sales representatives from different fields like

pharmaceutical companies, life insurance companies, automobile companies fast

moving consumer goods companies, etc. visit the town. A chunk of rooms are also

occupied by the transit passangers which accounts to 9.58 percent as because it is a

transit point for passengers traveling to neighboring states like Meghalaya, Mizoram,

Manipur and Tripura. Almost equal number of rooms are occupied by the medical

tourists (patient) which account to 8.22 percent as there is Silchar Medical College

Hospital and a good number of private nursing homes developing at the town. The town

has not been able to attract much of recreational tourists due to the lack of strategic

campaigning.

Table 4.57: Nature of occupancy pattern in hotels and lodges at Silchar

Sl.

no.

Clientele Hotels and lodges receiving

different types of clientele

Percentage of

business

1 Corporate 26 35.62

2 Business 32 43.84

3 Recreational tourist 2 2.74

4 Medical tourist 6 8.22

5 Official job Nil -

6 Transit passenger 7 9.58

*Some hotels and lodges have been receiving clientele from multiple sources.

Source: Field survey, 2008-2009

The hotels and lodges of Silchar town are also getting good room occupancy

(Table 4.58). The average room occupancy of hotels and lodges of Silchar town stands

at 52.13 percent. However, occupancy is affected during summer due to occasional

disruption of road and railway transportation due to flood.

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Table 4.58: Average occupancy of hotels and lodges at Silchar

Number of

hotels and

lodges (fi)

Percentage of

occupancy (xi)

fixi Average occupancy

percentage of hotels

and lodges (∑fixi/∑fi)

1 25 25

52.13

1 35 35

6 40 240

3 45 135

11 50 550

3 55 165

10 60 600

3 65 195

2 70 140

∑ fi = 40 ∑ fixi = 2085

Where ∑ fi = Total number of hotels and lodges, and ∑ fixi = Sum of the product of

number of hotels and the occupancy percentage

Source: Field survey, 2008-2009

As like the other towns and cities of Assam, Silchar also offer single, double,

and triple rooms along with dormitory and suite rooms to its guests. There are as many as

923 rooms available at Silchar among the entire category, out of which there are 501

double rooms i.e. 54.28 percent, followed by 338 single rooms i.e. 36.62 percent (Table

4.59).

Table 4.59: Availability of rooms in hotels and lodges at Silchar

Types of rooms No. of rooms

No. of non a.c rooms

% of non a.c rooms

No. of a.c rooms

% of a.c rooms

Single 338 313 92.6 25 7.4

Double 501 410 81.84 91 18.16

Triple 62 62 100 Nil -

Dormitory 8 8 100 Nil -

Suite 14 Nil - 14 100

Total 923 793 130

Source: Field survey, 2008-2009

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There are as many as 130 air conditioned rooms out of the total 923 rooms which

accounts for 14.08 percent of the total rooms available. Majority of the rooms i.e. 85.92

percent are in the category of non air conditioned. This shows that the low priced rooms

are in high demand than the high priced rooms at Silchar town.

Hotels and lodges of Silchar town offer different category of rooms at various

tariff range to suit the need of its guest (Table 4.60). The guest can take a single room in

as low as Rs. 40.00 and double rooms at Rs. 100.00 including taxes. Study also shows

Table 4.60: Availability of different category of rooms at various tariff ranges in

hotels and lodges at Silchar

Category

Room

tariff (Rs.)

Number of hotels and lodges offering

Single

room

Double

room

Triple

room

Dormitory Suite

room

Total

Eco

no

my

<100 12 Nil 1 Nil Nil 13

100-200 18 16 5 Nil Nil 39

200-300 12 15 6 2 Nil 35

300-400 9 9 7 2 Nil 27

400-500 1 5 1 1 Nil 8

Total 122

Bu

dg

et

500-600 2 5 3 Nil Nil 10

600-700 1 4 2 1 Nil 8

700-800 1 5 Nil Nil Nil 6

800-900 1 2 Nil Nil Nil 3

900-1000 1 3 Nil Nil Nil 4

Total 31

Lux

ury

>1000 2 2 Nil Nil 5 9

Total 9

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff ranges.

Source: Field survey, 2008-2009

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that 75.31 percent of the hotels and lodges are offering rooms at economy tariff range

whereas at the luxury tariff range, only 5.56 percent of the hotels are offering rooms.

The survey also shows that lesser is the tariff more the availability of rooms and higher

is the tariff lesser the number of room availability.

The hotel business at Silchar town is dominated by economic category of hotels

and lodges which alone accounts for 75.31 percent of the total hotels and lodges. On the

other hand, only 5.56 percent of the hotels offer luxury rooms to its guest (Table 4.61).

Therefore it can be concluded that more and more hotels and lodges will be coming up

in near future to accommodate economy and budget category tourists since the

movement of these groups are much higher. Whereas there are less chances of

investment from the potential entrepreneur in the luxury category as the demand of

these category rooms are less at present.

Table 4.61: Number of hotels and lodges offering rooms at economy, budget and

luxury category at Silchar

Tariff range vis-à-vis rooms

Ranges of rooms tariff (Rs.) Hotels and lodges

Economy <500 122

Budget 500-1000 31

Luxury >1000 In 9 hotels

*Some of the hotels and lodges offer same types of rooms which belong to more than one tariff ranges.

Source: Field survey, 2008-2009

Hotel business is one of the upcoming business especially in the towns and cities

of Assam. It is an outcome of the growth of mobility resulting from diversification of

economic activity, transforming social attitude and gradually growing touristic

activities. However, there has been considerable degree of spatial variation in terms of

its growth and trend of development. The geographical spread of the accommodation

facilities is determined by great complexity of considerations namely historical,

political, economic, natural and many other associated factors.

Though the hospitality business in Assam has started in the early 1950s, its

growth was very slow till 1990. The total number of hotels and lodges till 1990 were

116 constituting only 29.67 percent of the total hotels and lodges available in the state

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with a capacity of 1500 (17.64 percent) rooms and 2602 (17.02 percent) beds of the

state. With the improvement in law and order situation and with increase in commercial

activities after 1990s along with the improvement in transport sector, the hotel business

started growing in the length and breadth of the state. But in terms of quality

accommodation, situation of the state is found to be not so impressive and at present the

state has to its credit only 20 numbers of approved hotels having a room capacity of 723

and their distribution is also found to be quite polarized. On the other hand, in economy

category, there is a steep rise of hotel business in all over Assam, which alone

constitutes 66.11 percent of hotels and lodges of the state. Share of budget category

hotels and lodges in the state is also moderate (22.80 percent) but the share of luxury

category is very less i.e.11.09 percent. In the clientele segments the corporate clientele

(41.39 percent) dominates the hotel business of the state.

4.4 HUMAN RESOURCE SCENARIO IN HOSPITALITY SECTOR

4.4.1 Human resource scenario in the accommodation sector

The word ‘resource’, refers to the productive power of natural goods. Human

resource is, therefore, the productive power in human beings. They are the ones who

provide the resources and also reap the benefits of the products or services (MTM-2,

2000). Human resource plays a very crucial role for the success of an organization and it

is more so in the case of hospitality industry. Hospitality industry is characterized by

high level of human involvement in both the production and delivery of its service to its

guest. Many ways and means may be employed to deliver hospitality services to its

guests, but the role of human as individual or group is almost universal. With the

changing trend of hospitality industry and its intangible nature, it demands skilled

personnel to deliver quality service at the present competitive market environment. The

reality today is that the balance of power is shifting from sellers to buyers and in doing

so it makes the importance of delivering high quality service, convenience and value for

money ever more compelling. In context of present competitive market environment, it

emphasizes on quality products and delivery of services, the role of human resource an

effective management in creating quality product and service is widely recognized as

one of the most important element in improving the effectiveness of the organization.

Hospitality sector of the economy operates within a highly flexible demand

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144

environment, which is well reflected by seasonality pattern, which put constraints on

human resource development (Bhattacharya, 2007).

The hospitality sector in all locations has a close relationship with the labour

market environment from which it draws its skills and constantly depends on its

workforce for the delivery of service and product standards to meet existing and

anticipated demand from its visitor’s market place. With this backdrop, an attempt has

been made to analyze the human resource involved in hospitality sector of Assam.

Assessment has been carried out in 9 selected cities/towns of Assam. These nodes are

selected on the basis of the presence and magnitude of hospitality sector there in.

Altogether 278 sample of workers has been selected, out of which 12 are from Dhubri,

9 from Barpeta Road, 100 from Guwahati, 31 from Tezpur, 28 from Kaziranga, 15 from

Sivsagar, 26 from Dibrugarh, 24 from Tinsukia and 33 from Silchar. Purposively

designed questionnaires are used to analyze relevant parameters (annexure-II). The data

so gathered has been analyzed to portray the human resource scenario of the

accommodation sector in Assam.

Age of the workers

So far the age of the workers of accommodation sector in Assam is concerned, majority

of them i.e. 63.67 percent are of below 29 years. Dominating age group of workers in

the hotels and lodges found to be 19-29 years and they represent 57.91 percent of the

workers of the sector (Table 4.62). Within this age group the people from rural areas

migrate to the nearest city/town in search of employment. The workers in this group are

generally unmarried and do not have much family responsibilities, therefore they find an

easy place to get job in hotels, lodges, restaurants etc. However child labour (14 years or

less) have been seen in the town of Dhubri and Barpeta Road which accounts for 25

percent and 22.22 percent respectively of the work force in their respective towns. This

is because of the fact that these places are minority dominated and generally the people

of the adjacent areas are from the economically weaker section of the society and

bearing more children in the family. To support themselves and their family, children

are forced to work in the places like hotels, lodges, restaurants, etc.

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Table 4.62: Age group of workers engaged in hotels and lodges in Assam

Source: Field survey, 2008-2009

Educational status of hotel workers

So far educational status of hotel workers of Assam is concerned, majority of

workers are below HSLC (63.67 percent). Interaction with the employees, it was found

that the low levels of education among majority of the workers are attributed to weaker

economic background of their family, which forced them to migrate to the nearest

city/town in search of a job (Table 4.63). As the education level is very low, they do not

have any other alternative to get employment in other sector of the economy. Finding

jobs becomes easier in the hospitality sector for them because this industry is labour

intensive. The unskilled and fresh people can also be trained through ‘on the job’

training method for this sector. On the other hand the number of hotel management

professionals working in the hotel industry in Assam is found to be very less, i.e. 5.40

Sl

no

ß-------------------------------------Age group---------------------------------------------à

Tota

l sam

ple

Citie

s/

To

wns

<=

14

%

14-1

9

%

19-2

4

%

24-2

9

%

29-3

4

%

34-3

9

%

>3

9

%

1 Dhubri 3 25.00

2 16.6

7 3 25.00 2

16.67

1 8.33 Nil - 1 8.33 12

2 Barpeta Road

2 22.22

2 22.2

2 2 22.23 1

11.11

1 11.11 Nil - 1 11.11

9

3 Guwahati Nil - Nil - 25 25.00 28 28.0

0 20 20.00 12

12.00

15

15.00

100

4 Tezpur Nil - 4 12.9

0 15 48.40 4

12.90

4 12.90 2 6.45 2 6.45

31

5 Kaziranga Nil - 1 3.70 13 48.14 8 29.6

3 2 7.41 2 7.41 2

7.41

28

6 Sivsagar Nil - Nil - 4 26.67 7 46.6

7 3 20.00 1 6.67 Nil - 15

7 Dibrugarh Nil - 1 3.85 6 23.08 7 26.9

3 4 15.38 4

15.38

4 15.38

26

8 Tinisukia Nil - Nil - 7 29.17 9 37.5

0 2 8.33 2 8.33 4

16.67

24

9 Silchar Nil - 1 3.03 9 27.27 11 33.3

4 4 12.12 4

12.12

4 12.12

33

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Table 4.63: Educational status of the workers engaged in hotels and lodges in

Assam S

l N

o. City/t

ow

n

Literacy Level Of Workers

Tota

l sam

ple

Illit

era

te

%

of w

ork

ers

Belo

w H

SL

C

% o

f w

ork

ers

HS

LC

% o

f w

ork

ers

Hig

her

Seco

nd

ary

% o

f w

ork

ers

Degre

e

% o

f w

ork

ers

Hote

l M

ana

gem

ent

% w

ork

ers

1 Dhubri 4 33.33 8 66.67 Nil - Nil - Nil - Nil - 12

2 Barpeta Road

1 11.11 7 77.78 Nil - 1 11.11 Nil - Nil

- 9

3 Guwahati 5 5.00 50 50.00 15 15.00 13 13.00 11 11.00 6 6.00 100

4 Tezpur 4 12.90 17 54.84 3 9.68 3 9.68 3 9.68 1 3.22 31

5 Kaziranga 2 7.14 11 39.29 2 7.14 8 28.57 3 10.72 2 7.14 28

6 Sivsagar 1 6.67 7 46.67 Nil - 4 26.67 2 13.33 1 6.66 15

7 Dibrugarh 1 3.85 18 69.23 Nil - 2 7.69 2 7.69 3 11.54

26

8 Tinsukia 2 8.33 15 62.50 Nil - 5 20.83 1 4.17 1 4.17 24

9 Silchar 1 3.03 23 69.70 4 12.12 2 6.06 2 6.06 1 3.03 33

Source: Field survey, 2008-2009

percent of the workers. However share of hotel management professionals’ in Guwahati

stands at 6 percent, 3.22 percent at Tezpur, 7.14 percent at Kaziranga, 6.66 percent at

Sivsagar, 11.54 percent at Dibrugarh, 4.17 percent at Tinsukia and 3.03 percent at

Silchar. At Dhubri and Barpeta Road, no hotel management professional have been

found in the workforce. Since the number of hotel management professionals are found

to be very less in the different cities/towns of Assam it adversely affects the quality of

service to the guest in this sector.

Job reliance of workers

From the investigation on hotel workers’ job association, it has been seen that

most of the workers (70.86 percent) stays in the hotels and lodges for a maximum

period of 5 years (Table 4.64). As for most of the workers towns are new place and they

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do not have any contacts in the new environment, for which they find the hotels and

lodges as the safe place to start and earn their livelihood with little knowledge. Once

Table 4.64: Association of workers with hotels and lodges in Assam

Sl no

City/T

ow

n

ß--------------------------------No of years---------------------------------à

Total sample <

1

% o

f

work

ers

1-3

% o

f

work

ers

3-5

% o

f

work

ers

5-7

% o

f

work

ers

>7

% o

f

work

ers

1 Dhubri 4 33.34 3 25.00 3 25.00 1 8.33 1 8.33 12

2 Barpeta

Road 2 22.23 1 11.11 Nil - 3 33.33 3 33.33 9

3 Guwahati 6 6.00 46 46.00 30 30.00 6 6.00 12 12.00 100

4 Tezpur 1 3.23 7 22.58 10 32.25 3 9.68 10 32.26 31

5 Kazirang

a 5 17.86 9 32.14 6 21.43 2 7.14 6 21.43 28

6 Sivsagar Nil - 3 20.00 5 33.33 3 20.00 4 26.67 15

7 Dibrugarh 4 15.38 2 7.69 12 46.15 4 15.39 4 15.39 26

8 Tinsukia 3 12.50 7 29.17 3 12.50 6 25.00 5 20.83 24

9 Silchar 4 12.12 10 30.30 11 33.34 5 15.15 3 9.09 33

Source: Field survey, 2008-2009

they are there, their contact increases and they move to other lucrative jobs. The salary

which the average hotel employees use to get in Assam is not sufficient to support their

families and they shift to other jobs after few years of service in the hotel.

Sex ratio of hotel and lodge workers

Globally, hospitality sector is dominated by women work force. But the situation

is found to be quite reverse in Assam, as the sector is not yet reaching the desired level

of sophistication. The male worker dominates the sector which accounts around 92.09

percent of the work force (Table 4.65). The owners also are in favour of keeping male

counterpart as because they can be made to work for longer periods. The percentage of

female is only 7.91 percent against male. This is because the working environment in

some of the department is not suitable for women. They generally cannot be kept in

night shift as well as on the duty for longer periods. There are also problem of security

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Table 4.65: Sex ratio of workers in hotels and lodges of Assam

Sl no

City/town No of workers % of workers

Total sample Male Female Male Female

1 Dhubri 10 2 83.33 16.67 12

2 Barpeta Road 7 2 77.78 22.22 9

3 Guwahati 95 5 95.00 5.00 100

4 Tezpur 29 2 93.55 6.45 31

5 Kaziranga 26 2 92.86 7.14 28

6 Sivsagar 14 1 93.33 6.67 15

7 Dibrugarh 23 3 88.46 11.54 26

8 Tinsukia 21 3 87.50 12.50 24

9 Silchar 31 2 93.94 6.06 33

Source: Field survey, 2008-2009

to the women. It is found that owners are avoiding the risk of employing women. At the

same time women are not yet willing to join hotels because of the odd working

conditions, duty timing and non fulfillment of facilities to workers and low pay

packages.

Salary and wages of the workers

Investigation on the salary and wage component of the hotel workers of Assam

revealed a quite sorry state. Majority of the hotel and lodge employees (69.78 percent)

found to be getting less than Rs. 2500 per month (Table 4.66). However the owners of

the hotel and lodges justify the low salary structure as they provide free food and

lodging to the workers, on and above they get tips. Interaction with the employees

revealed that they are not at all satisfied with the salary structure as it is quite less to

support their family needs. They are compelled to work as they don’t have any

alternative with their low level of educational qualification. Though the Department of

Labor and Employment, Government of Assam (Memo No. GLR. 318/90/224-/A

dated18th

March 2010) has fixed minimum wages for unskilled workers- Rs. 2604, semi

skilled workers- Rs. 2708 and skilled workers – Rs. 2975 in a month, around 70 percent

of the hotel employees are not even getting the minimum wages that has been fixed by

the government.

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149

Table 4.66: Salary structure of the workers engaged in hotels and lodges of Assam

Sl

n

o C

ity/t

ow

n

ß-------------------------------------Salary (in rupees)---------------------------------à

50

0 -

10

00

% o

f

work

ers

10

00 -

150

0

% o

f

work

ers

15

00 -

2000

% o

f

work

ers

20

00-2

500

% o

f

work

ers

25

00 -

300

0

% o

f

work

ers

30

00 -

350

0

% o

f

work

ers

>3

50

0

% o

f

work

ers

Tota

l

sam

ple

1

Dhu

bri

6 50.00 3 25.00 2 16.67 Nil - Nil - 1 8.33 Nil - 12

2

Barp

eta

Road

2 22.22 3 33.34 1 11.11 1 11.11 1 11.11 Nil - 1 11.11 9

3

Gu

wa

hati

4 4.00 20 20.00 25 25.00 19 19.00 9 9.00 13 13.00 10 10.00 100

4

Tezp

ur

4 12.90 7 22.58 6 19.36 6 19.36 2 6.45 2 6.45 4 12.90 31

5

Kazira

nga

1 3.57 3 10.71 7 25.00 4 14.29 3 10.71 6 21.43 4 14.20 28

6

Siv

sag

ar

1 6.67 3 20.00 2 13.33 3 20.00 1 6.67 3 20.00 2 13.33 15

7

Dib

rug

arh

1 3.85 4 15.38 11 42.30 3 11.54 1 3.85 4 15.38 2 7.70 26

8

Tin

sukia

Nil - 7 29.17 7 29.17 4 16.66 2 8.33 3 12.50

1

4.17 24

9

Silc

har

Nil - 14 42.42 8 24.25 2 6.06 4 12.12 2 6.06

3

9.09 33

Source: Field survey, 2008-2009

Working hour of hotel and lodge employees

As per the law the working hours for the employees should not exceed 8 hours

in normal condition. However, in normal condition, hotel and lodge employees had to

work for 10 hours or more in Assam (Table 4.67). If the employees are made to work

more than 8 hours, the over time allowances should be given to them. But in reality the

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150

situation is opposite in the hospitality sector. The employees are not getting any

overtime allowances nor compensatory off in lieu of working over time. As the most of

the employees are kept on the house, so the owners are taking undue advantage of the

situation.

Table 4.67: Working hours of hotel and lodge employees in Assam

Source: Field survey, 2008-2009

Other benefits to the hotel and lodge employees

As per the labour/ company law, employees of hotel and lodge should have the

benefits of off day, provident fund, employees state insurance and leaves like casual,

earn leave, medical leave, etc. However in Assam, most of the hotel and lodge

employees are deprived from such benefits they should have. Only 9.35 percent of hotel

and lodge employees of Assam enjoy weekly off days, only 8.99 percent of the

employees enjoys ESI (employees state insurance) facilities, 9.35 percent of them get

provident fund benefit, only 2.16 percent enjoy casual leave, 2.16 percent enjoy earn

leave and 2.16 percent enjoy medical leave facilities (Table 4.68). Thus, it has been

observed that the conditions of the hotel and lodge employees are very pathetic. The

Sl no.

City/T

ot

tow

n

ß---------------------------------------Working hours---------------------------------à

Tota

l sam

ple

8 % o

f w

ork

ers

9 % o

f w

ork

ers

10

% o

f w

ork

ers

11

% o

f w

ork

ers

12

% o

f w

ork

ers

>12 % o

f w

ork

ers

1 Dhubri Nil - Nil - Nil - Nil - Nil - 12 100.00 12

2 Barpeta

Road Nil - Nil - Nil - Nil - 1 11.11 8 88.89 9

3 Guwahati 2 2.00 Nil - 4 4.00 Nil - 19 19.00 75 75.00 100

4 Tezpur 2 6.45 Nil - 10 32.26 Nil - 5 16.13 14 45.16 31

5 Kaziranga 3 10.71 Nil - 7 25.00 1 3.57 4 14.29 13 46.43 28

6 Sivsagar Nil - Nil - 5 33.33 Nil - 4 26.67 6 40.00 15

7 Dibrugarh Nil - Nil - 2 7.69 Nil - 1 3.85 23 88.46 26

8 Tinsukia 3 12.50 Nil - 1 4.17 Nil - 7 29.17 13 54.16 24

9 Silchar Nil - Nil - 1 3.03 Nil - 10 30.30 22 66.67 33

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151

owners are exploiting these workers at their will taking the advantage of unorganized

nature of the sector.

Table 4.68: Benefits to the hotel and lodge employees in Assam

Source: Field survey, 2008-2009

Hotel employees’ union and organization

Employees’ union and similar organizations are ideal forum to legitimately

address the interest of the workforce. However, in Assam only a few numbers of hotels

and lodges i.e. 7 out of 391 hotels and lodges (1.79 percent) are having employees’

union (Table 4.69). Hospitality is one of the sectors in the economy where the

employees are mostly exploited in terms of salary, working hours and other associated

benefits. Such exploitation can be attributed to the non existence of employees union.

The employees’ union becomes a powerful tool for the employees in an organization to

raise their demands and fulfill them. It also acts as a watchdog against the exploitation

of the workers.

Sl n

o

City/T

ow

n

ß-----------------------------------Benefits---------------------------------à

To

tal

Off

day

% o

f w

ork

ers

ES

I

% o

f w

ork

ers

PF

% o

f w

ork

ers

CL

% o

f w

ork

ers

EL

% o

f w

ork

ers

ML

% o

f w

ork

ers

1 Dhubri Nil - Nil - Nil - Nil - Nil - Nil - 12

2 Barpeta Road

1 11.11 Nil - Nil - 1 11.11 1 11.11 1 11.11 9

3 Guwahati 10 10.00 7 7.00 7 7.00 2 2.00 2 2.00 2 2.00 100

4 Tezpur 3 9.68 6 19.35 3 9.68 Nil - Nil - Nil - 31

5 Kaziranga 3 10.71 4 14.29 4 14.29 3 10.71 3 10.71 3 10.71 28

6 Sivsagar 1 6.67 1 6.67 1 6.67 Nil - Nil - Nil - 15

7 Dibrugarh 3 11.54 2 7.69 4 15.38 Nil - Nil - Nil - 26

8 Tinsukia 3 12.50 2 8.33 2

8.33 Nil -

Nil - Nil - 24

9 Silchar 2 6.06 3 9.09 5 15.15 Nil - Nil - Nil - 33

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Table 4.69: Presence of employees’ union in the hotels and lodges of Assam

Sl.

no.

City/town

Total no. of

hotels and

lodges

No. of hotels and

lodges having

employees union

% of hotels and

lodges having

employees union

1 Dhubri 18 Nil -

2 Barpeta

Road 10 1 10

3 Guwahati 171 3 1.75

4 Tezpur 31 Nil -

5 Kaziranga 32 3 9.38

6 Sivsagar 17 Nil -

7 Dibrugarh 47 Nil -

8 Tinsukia 25 Nil -

9 Silchar 40 Nil -

Source: Field survey, 2008-2009

4.4.2 Scenario of hospitality education

Success of hospitality sector in an area basically relies on need based, area

specific human resource development. While stating the emerging issues of global

hospitality sector, Brown (2001) stated that countries are waking up to the need for the

development of specific skills in hospitality and tourism sector. The labour market is

constantly evolving in response to changing technologies and environments, demanding

newer occupational and behavioral skills and hospitality sector, like all other sectors has

to match its skill requirements with skill demands. The relevance of hospitality

education is an important issue for the hospitality industry as it becomes the major

driver for the hospitality business. Hospitality industry is now putting much effort in

education, training and development. There have been significant efforts at generating

hospitality related skills in India. In the field of hotel management, Institute of hotel and

catering management were setup in as early as 1962 and there were 12 such institutes

managed by Central Government. Food Craft Institutes have also been established in

various parts of the country for providing training in hospitality related disciplines. The

National Council for Hotel Management and Catering Technology was created in 1984

for promoting technical education in the hospitality services and to ensure standards.

As of now there are 21 Central Institute of Hotel Management, Catering Technology

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and Applied Nutrition and 12 such institutes under State Government, affiliated to

National Council for Hotel Management and Catering Technology. Apart from these

institutes 18 private hotel management institutes have also been given affiliation by the

National Council for Hotel Management and Catering Technology. The Council is

running three year degree course in hotel management, post graduate programme in

hospitality and administration, post graduate diploma in accommodation operation and

management, Diploma and certificate courses in food production, housekeeping, front

office operations, bakery and confectionary, food and beverage service, etc.

Government and non-governmental organizations have also taken initiatives to carryout

long and short term training programme in diverse field of hotel management.

In spite of these efforts towards raising the involvement of skilled persons in the

hospitality industry, the situation is far from satisfactory in India. The survey on

manpower requirement in hotel industry conducted in 2004 by market plus organization

at the behest of Ministry of Tourism, Government of India, stated that in all there are

about 175 training institutions engaged in hotel management and food craft in the

country, of which about 50 are government sponsored and remaining in private sectors.

Around 18,000 persons graduate from these institutions annually with a

degree/diploma/certificate in hotel management or food craft. However, about 35 to 40

percent of them do not eventually join hotel industry and shift to more lucrative jobs in

other areas. The study also found that while most employees in

management/supervisory cadre in front office, food and beverage service, kitchen and

housekeeping of the four and five star hotels have formal qualification in hotel

management and almost half of the managers and supervisors in one, two and three star

hotels also had a degree/diploma in hotel management or certificate from food craft

institutes. Hotels in unorganized sectors employed mostly untrained staff, only 1 in 8

being a trained hand. In restaurants of the country, only 20 percent of those employed in

food and beverage service of regular restaurants has formal qualifications in the relevant

subject (Agarwal, 2006).

Though field investigation on the manpower scenario of hospitality sector of

Assam provides a quite unorganized status of the area, the scenario of hospitality

education in the state is improving gradually, as a number of institution offering hotel

management courses in recent years. At present there is one hotel management institute

and one food craft institute at the government level. Institute of Hotel Management,

Catering Technology and Applied Nutrition at Guwahati is delivering 3-years B. Sc in

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hospitality and hotel administration along with post graduate diploma in

accommodation operation and management and certificate course in craftsmanship

course in food production (Table 4.70). On the other hand, the Food Craft Institute at

Samaguri (Nagaon district) established in the year 2010, delivering certificate course in

craftsmanship course in food production, bakery and confectionary, reception, house-

Table 4.70: Courses offered by Institute of Hotel Management, Catering Technology

and Applied Nutrition, Guwahati

Sl

no

Courses offered

Duration of

course

Intake

capacity

Minimum qualification

required

Maximum age

1 B.Sc. in Hospitality&

Hotel Administration 3 years 192

Higher Secondary in any

stream 22 yrs

2

Post Graduate

Diploma in Accommodation

Operation and

Management

1 ½ years 60 Any graduate 28 yrs

3.

Certificate course in

Craftsmanship course

in Food Production

1 ½ years 60 High School leaving

Certificate 22 yrs

Source: IHMCTAN, Guwahati, 2012

keeping and food and beverage service. Another hotel management institute at the

initiative of state government, funded by Ministry of Tourism, Government of India will

be set up at Jorhat which is in the pipeline. Apart from the government institutes, there

are another hotel management institutes in the private sector namely, North East

Institute of Management and Science (NEIMS) at Jorhat offering degree and diploma

courses in various trades in hotel management and is affiliated to Dibrugarh University.

International Institute of Hotel Management at Machkhowa (Guwahati) offering degree

and diploma courses in various trades of hotel management under Punjab Technical

University and Assam Down Town University at Panikhaity (Guwahati) is also offering

degree courses in hotel management. Other organizations like North East Institute of

Hotel Management (NEIHM) at Kahilipara (Guwahati) is offering certificate courses in

hotel management trades under national open schooling system, A-IHM at Panjabari

(Guwahati) offering degree and diploma in various hotel management courses under

Punjab Technical University. Pragati Institute of Hospitality Management at

Maniknagar (Guwahati) is also offering one year diploma in hotel management. Krishna

Kanta Handique State Open University is also offering some of the diploma courses in

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hotel management in distance mode. However, there are other organizations in private

sector like Air Hostess Academy, Frankfinn Institute, Sky Aviation Academy etc. which

is also contributing towards hospitality education in Assam. Field investigation in this

regard revealed that there are as many as 5 such institutions in this category which are

providing one year dual diploma in airlines, hospitality and tourism at Guwahati. These

institutions having trusted area as airlines but other subjects like food and beverage

service and front office are also covered during the course.

Although in Assam, both the state and central government has taken initiative to

improve the hospitality education scenario by setting up of hotel management institutes,

the actual situation at grass root remains far from the expected level. Field investigation

on the human resource aspect of hospitality business of the state reveals that there are

around 5.40 percent of the employees of the hotels and lodges of Assam, trained in the

hotel management background.

For admission into the three year B.Sc. in Hospitality and Hotel Administration

course in India, a country level Joint Entrance Examination is conducted by National

Council for Hotel Management and Catering Technology based at Noida for all the

IHMs of the country that are affiliated to it. Seats are allotted to the students based on

their performance at the entrance examination. Apart from that there are quotas from the

North Eastern states including Assam for IHMCTAN, Guwahati. On the other hand

admission for the courses of PGDAOM and Craftsmanship in food production is done

based on interview of the candidates at IHMCTAN, Guwahati itself. However,

discussion with the authority of Institute of Hotel Management, Catering Technology

and Applied Nutrition Guwahati, it was found that the Institute has not been able to fill

up all the seats in all the above three courses. About 50 percent of seats are filled up and

rests remains to be vacant (Table 4.71). This is because of the fact that majority of the

seats, except quotas for North East India are used to be filled up by students from other

parts of the country due to the poor awareness level of North Eastern students, and most

of the outsiders are also not interested to study in Assam because of its socio-political

unrest. On the other hand, even quotas from Assam and North East are also not filled

because of the unawareness about the course and majority of youth from the region

consider the work in the hospitality sector as jobs of low status in comparison to other

occupation in the society. On and above the initial pay structure in the hospitality sector

in general are still much lesser in comparison to other sector of jobs.

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Table 4.71: Pattern of admission at IHMCTAN, Guwahati

In three year B.Sc. course in H&HA

Academic

session

Intake

capacity

No. of

student admitted

No. of

students from

outside the state of

Assam

No. of

student from

Assam

% of

student from

Assam

2007-08 192 77 62 15 19.48

2008-09 192 116 98 18 15.52

2009-10 192 115 95 20 17.39

2010-11 192 115 96 19 16.52

2011-12 192 110 92 18 16.36

In one and half year course in PGDAOM

Academic

session

Intake

capacity

No. of

student

admitted

No. of

students

from

outside the state of

Assam

No. of

student

from

Assam

% of

student

from

Assam

2007-08 60 21 2 19 90.48%

2008-09 60 32 5 27 84.38%

2009-10 60 22 3 18 81.82%

2010-11 60 16 3 13 81.25%

2011-12 60 15 2 13 86.67

In one and half year Craftsmanship course in Food Production

Academic

session

Intake

capacity

No. of

student

admitted

No. of students

from outside the

state of Assam

No. of

student

from

Assam

% of

student

from

Assam

2007-08 60 29 6 23 79.31

2008-09 60 27 4 23 85.19

2009-10 60 32 7 25 78.13

2010-11 60 28 5 23 82.14

2011-12 60 28 4 24 85.71

Source: IHMCTAN, Guwahati, 2012

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4.4.3 Initiatives of central government

Tourism in India has the potential to emerge as a key economic driver. The

Ministry of Tourism, Government of India, has targeting over 12 percent annual growth

rate in the arrival of in-bound foreign and growth of domestic tourist segment. It has

been projected that tourism sector will generate additional jobs of about 2.5 crore, both

direct and indirect, during the period 2010-16. Estimated direct additional requirement

of manpower for the hospitality sector will be about 40.61 lakh persons (Ministry of

Tourism, HRD, 2009). Therefore, servicing the sector with skilled manpower becomes

imperative and foremost challenge before the country. It is also equally important for

region like North East India, having potentiality for the sector.

The Ministry of Tourism, Government of India, has taken several steps to impart

skills to the existing manpower in this sector and to create skills in youth as vocational

options. In the context, the Hunar se Rozgar Tak, is a key initiative of the Central

Ministry of Tourism to create employable skills. The Ministry of Tourism has initiated

training programmes to cover certain core service specific area of hospitality sector

namely food production, food and beverage service, housekeeping and bakery. The

main objective of this initiative are to train and up-grade manpower at every strata of

service in order to (i) capitalize on the vast tourism potential of the country to the

fullest, and (ii) provide professional expertise to the local populace as well as create

fresh opportunities for employment generation in the tourism sector both in urban as

well as rural areas. Under the Scheme the programmes like (i) Hunar se rojgar, (ii) Skill

certification programme and (iii) Tourism awareness programme for dhaba /fast

food/hotel and restaurant, kiosks, tea stalls and other small eating joints were delivered

by IHM Guwahati. Under the programme Hunar se rozgar, two courses are being

conducted. They are:

(i) Food production: This is a full time course of 8 weeks. The candidate with

educational qualification of class VIII pass and between 18 years to 28 years is

eligible for admission. The number of beneficiaries under this course is as follows-

Year No. of beneficiaries

2009-10 181

2010-11 176

2011-12 222

Total 579

Source: IHMCTAN, Guwahati, 2012

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(ii) Food and beverage service: This course is also a full time course and of six week

duration. The candidate with educational qualification of VIII pass and between 18

years and 28 years are eligible for admission. The number of beneficiaries under this

course is as follows:

Year No. of beneficiaries

2009-10 35

2010-11 64

Total 99

Source: IHMCTAN, Guwahati, 2012

The Skill Certification Programme is for 6 days including exams. In this

programme the existing staff members of the hotels are targeted to enhance their

respective skill and to provide certificates to those who had no formal training before

getting into the job. This course has been designed for cook and waiters. So far, the

number of beneficiaries in this course is as follows:

a) Cook

Year No. of beneficiaries

2009-10 81

2010-11 155

2011-12 89

Total 325

Source: IHMCTAN, Guwahati, 2012

b) Waiters

Year No. of beneficiaries

2009-10 67

2010-11 232

2011-12 75

Total 374

Source: IHMCTAN, Guwahati, 2012

Under the banner of Tourism awareness programme the employees of dhaba,

fast food, hotel and restaurant, Kiosk, Tea stall and other small eating joints are

targeted. The main aim of this programme is to provide clean and hygienic food and

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service to the bulk of tourist with a pleasing welcome. The duration of this programme

ranges from 2 to 3 days. The number of beneficiaries under the scheme during 2004-07

were:

Year No. of

beneficiaries

2004-05 475

2005-06 435

2006-07 482

Total 1392

Source: IHMCTAN, Guwahati, 2012

4.4.4: Initiatives of North Eastern Council

North Eastern Council is an autonomous body formed by the Central

Government to look after the development of North Eastern Region of India, taking into

the backwardness of the region as compared to other parts of the country. In this regard

N.E.C has also taken initiative to train service providers which could be engaged in

providing service directly to the tourists. In this regard N.E.C has entrusted IHMCTAN,

Guwahati in 2011 to undertake one month full time course in the areas like (i) Reception

and front office, (ii) Housekeeping and (iii) Bakery and confectionery. So far 90

beneficiaries are trained, covering 30 in each service skill areas. However, the initiatives

of central and state government, professional academic institutions, both at government

and private initiatives have a long journey to make and help to generate technical

manpower to improve the service in this sector in the future.

References

Agarwal, R.(2006): HRD for Tourism and Hospitality – A Study of Human Psyche,

JOHAR, Department of Management, B.I.T Mesra, Ranchi- 15, pp 46-47

Bhatt, H. (2005): Encyclopedia of Hospitality and Tourism Management, Crescent

Publishing Corporation, Darya Ganj, New Delhi -2, p 197

Bhattacharya, P. (2004): Tourism in Assam, Trends and Potentialities, Bani Mandir,

Guwahati- 3, pp. 100, 244

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Bhattacharya, P. (2007): HRM in Tourism Sector, The Assam Tribune, 27th

September,

p. 6

Bora, N., Rajkhowa, N. (2011): Assam Tourism: Opportunities and potentialities,

Jagaran Sahitya Prakashan, Rajgarg, Guwahati – 3, p. 56

Department of Business Administration (2011): Project Report on Market Survey for

Hotels in Guwahati, Gauhati University – 14, pp 7- 8

Department of Tourism (2008): Tourism Policy of Assam 2008, Govt. of Assam,

Dispur, Guwahati-6

Directorate of Industries and Commerce (2008): Industrial Policy of Assam, Govt. of

Assam, Guwahati-21, pp. 10-19

Hanique, B. (2011): Tourism Potentiality in Sivsagar district, Assam Tourism:

Opportunities and potentialities, Jagaran Sahitya Prakashan, Rajgarg, Guwahati-

3, p 68

IGNOU (2000): MTM- 2 Study Materials, p. 5

Ministry of Tourism (2011): Launch of a Scheme to impart driving skills under Hunar

se Rozgar Tak Initiative of the Central Ministry of Tourism, Govt. of India,

Letter no. F. 3(30)/2011-CBSP, September 8

Mohanty, P. (2008): Hotel Industry and Tourism in India. APH Publishing Corporation,

New Delhi –110002, pp 186-191

Singh, R. K. (2006): Modern Trends in Hospitality Industry, Aman Publications, Darya

Ganj, New Delhi- 2, p 37

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