Is the party ending for Pondy? 119 hotels up for sale

A significant decline in tourist influx and expenditure lately has triggered serious repercussions in the once-thriving hospitality sector in the Union Territory, with the Puducherry Hotels Association saying that nearly 119 properties have put up a "for sale" sign.

- DEBJANI DUTTA @ Puducherry

Stiff competition from prominent hotel chains, proliferation of unlicensed homestays and street food vendors have worsened the financial predicaments of the businesses already striving to stay afloat.

"Hotel occupancy has fallen sharply, affecting mid-range hotels that are unable to compete and are now shutting down," said Anand Gandhiraj, secretary of Hotel Association of Pondicherry, affiliated to the Southern India Hotels and Restaurants Association.

"Occupancy rates, which previously averaged between 65% and 75% annually, have now dropped to 40-55%. The situation is compounded by the upcoming addition of 2,000 new rooms in a year, to the existing 3,000-room inventory," he said.