Commonwealth Games Challenges

With the Commonwealth Games fast approaching, a reality check shows that Delhi hotels are ill prepared to handle the expected surge in 2010. According to industry experts, the number of hotel rooms required in the national capital region (NCR) for the Games would be around 40,000. Currently the number stands at around 7000 to 7500 rooms in the branded hotels segment. And according to trade analysts even if one were to add hotel rooms in areas like Karol Bagh, Paharganj and Daryaganj, the total number would not add up to more than 15,000. With an estimated 5,000-6,000 additional branded rooms expected to be added in the interim, the shortfall is still huge. Almost 50%!

Bread & breakfast (B&B) accommodation units are seen as an alternative. The current 300 units in the city are expected to touch the 1000 mark. But the numbers simply do not add up. Just to get a comparative perspective, Shanghai in China alone boasts of 135,000 rooms as against 110,000 in all hotels in India in the three to five-star segments.

Add to this the fact that rentals of hotels in Mumbai, Delhi and Bangalore are among the highest charged by hotels anywhere in the world, pose a rather daunting challenge. Hotels in Delhi presently charge $350 plus. London hotels charge roughly the same while Moscow and Rome charge considerably less at $260-350 and $140-350 respectively. Beijing managed a reasonable rate of around $155 during the just concluded Olympics. And if Delhi has to match up in 2010, it has to do better than the present $350 plus in the deluxe category.

Hence, in the count down to the Commonwealth Games the challenges are two pronged – increasing the numbers of hotel rooms in Delhi (NCR) and reducing the rental cost.  A great opportunity to push tourism in India to the next level should not go abegging.