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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
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
73
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.
74
• 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
75
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.
76
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
77
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
78
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
81
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
84
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
85
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.
94
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
95
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.
96
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.
97
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
98
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.
100
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
102
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).
103
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).
107
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
108
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
109
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
110
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
111
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
112
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
113
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
114
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.
115
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.
116
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
117
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
118
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,
119
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
120
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
121
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
122
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
123
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).
124
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
125
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
126
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
127
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
128
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
129
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
130
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
131
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
132
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
133
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
134
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
135
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
136
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.
137
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,
138
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.
139
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.
140
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
141
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
142
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
143
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
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.
145
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
146
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
147
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
148
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.
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
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
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
152
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
153
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
154
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
155
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.
156
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
157
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
158
(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
159
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
160
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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