The Himachal Pradesh tourism industry is still struggling to recover from the chaos caused by the floods during the monsoon, however, the sector has suffer another setback. The state government’s recent move to tax all commercial cars registered outside the state has agitated tour and travel agencies, per reports, as it will negatively impact the number of tourists.
A notification was released by the state government in July which slapped a daily charge on vehicles entering Himachal Pradesh that ranged from Rs 3,000 to Rs 6,000. The tax went into effect on 1st September and is based on the number of seats in the automobiles. The head of the Himachal Pradesh Tourism Stakeholders Association, Mohinder Seth asserted that the state administration needs to remove the fee.
After a meeting with a delegation of the Stakeholders Association in the state capital on 19th October, Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu assured that the new tax implemented on non-state commercial vehicles would be lowered.
The CM said that a tourist helpline would be established shortly and linked to helpline number 1100. In order to boost tourism, the state government is going to introduce new home stay regulations and a new heliport in Shimla has also been recommended.
Mohinder Seth, president of Himachal Tourism Stakeholders Association, released a statement and said, “We apprised the chief minister about the negative impact on the tourism industry due to new tax being levied on tempo travellers and tourist buses coming from other states. The CM agreed that tax was high and assured us that it would be reduced substantially.”
The group had sent a letter to the Chief Minister on 18th October imploring that the state’s tourism industry would benefit from the new tax’s repeal. According to the letter, hotel occupancy has decreased since travel agencies are sending groups of visitors to other destinations, such as Uttarakhand and Kashmir, instead of Himachal Pradesh.
Rahul Dhiman, the head of the Hotels and Restaurant Association of Dharamshala, explained that neither the government nor the Himachal Pradesh tourism sector would gain from the new charge. “The impact of the new tax is being felt in the tourism industry throughout the state. It will not only harm the industry but reduce the government earnings. It will be best for all if the decision is withdrawn by the government. Thankfully, Dharamshala hosted some of the World Cup matches that kept the hotel occupancy up, but we may also face hard times once the matches are over.”
“Travel agents in places like Maharashtra and Ahmedabad are ditching Himachal for Uttarakhand and Kashmir. Why would they come to Himachal when they are being asked to pay through the nose,” he asked and remarked, “State government must understand that instead of earning additional money through new tax, it’s losing more.”
Dhiman mentioned that from September to February, most tourists from West Bengal, Gujarat, and Maharashtra travel to Himachal in groups on buses and Tempo Travellers. He added, “Presently, hotel occupancy throughout the state is at its lowest. This just means that travel agents don’t want to suffer losses by sending tourist buses and Tempo Travelers to Himachal anymore.”
In a letter, Rahul Dhiman also requested that the state government reverse its decision and highlighted the fact that no other place, including Uttarakhand and Kashmir imposes a levy of this kind. “The tourism industry of Himachal will never recover like this. First, it was Covid-19, then monsoon devastation caused huge losses. Now we have this.”
Vinesh Shah, head of the Travel Agent Association of Pan India (TAAPA), said, “I would say around 5 lakh Gujarati tourists, who were scheduled to visit Himachal at this time of the year, are now going to Uttarakhand or Kashmir. The reason is simple. Why would we suffer losses by sending our vehicles to Himachal. The government is charging Rs 3,000 per day per Tempo Traveller from us. We have ended up paying more and earning less.”
Shah announced that TAAPA would ask the Gujarat tourism ministry to arbitrate the conflict. “We are requesting Gujarat tourism ministry to speak to the Himachal government for resolving the issue. Of the total tourists that visit Himachal annually, 25% to 30% are from Gujarat. Just imagine the setback the tourism industry of Himachal will face if these charges continue. Himachal is trying to increase its tourist footfall but this surely is not the way to do it.”
