Chennai, Sept 27: The SARS panic and terrorist attacks in the US and India had 'very badly' affected the Indian hotel industry, but the occupancy rate was now improving, according to industry sources here. The occupancy rate in star hotels in the south had come down to 42 per cent in the past two years as against 75 to 80 per cent prior to these panic situations in the South Asian countries, M P Purushothaman, president of the South India Hotels and Restaurants Association (SIHRA), told reporters after the association's 52nd annual general body meeting here today.
"We have now reached an occupancy level of 50 to 55 per cent and will soon reach the 80 per cent level," he said.
He said 34 hotel projects, including 18 in the south and eight in Tamil Nadu, had been cleared by the Union government. The projects, in the two to four star category, would come up in three years time.
The Centre gives rs.75 lakh as subsidy for new hotels upto three star category. There are nearly 1,100 star hotels in the country now, he said.
The association had asked the Tamil Nadu government to reduce the licence fees for bars, besides extending the time limit for bars in Star hotels, he said. Bureau Report