Tourism sector sees dip in revenue despite increase in tourist inflow

Despite an increase in tourist inflow, earnings in the sector dropped from Rs 18.47 to Rs 5.32 crore in a single year, the Comptroller and Auditor General (CAG) report said on Tuesday.

The CAG criticised the Delhi Tourism and Transportation Development Corporation (DTTDC) for having no perspective plan for tourism in the city despite its 39 years of existence.
“Tourist inflow in Delhi as a whole registered an increase of 108 per cent, whereas it increased only by 30 per cent in the tourist spots owned by the company during 2009-14.

Vacant craft and food stalls and non-holding of cultural events on regular basis at Dilli Haat led to declining footfall and consequent inadequate exposition of Indian art, culture and cuisine,” the statement issued by the CAG said.

“The net profit dipped from Rs 18.47 crore in 2012-13 to Rs 5.32 crore in 2013-14. Company’s tourist sports viz Delhi Haat-Pitampura and Garden of Five Senses incurred losses of Rs 5.58 crore respectively during 2009-14 due to low income and high fixed costs.

Tourism and Travel Division incurred loss of Rs 28.30 crore and Rs 2.63 crore respectively during 2009-14 as earnings were not sufficient to set off expenses,” the statement added.

The CAG said the deficient fund management and tax planning by Delhi Transport Infrastructure Development Corporation Ltd, a joint venture between the city government and the Infrastructure and Development and Finance Corporation, led to a loss of over Rs 8 crore to the exchequer. An undue benefit of Rs 1.57 crore was given to Delhi Integrated Multi Modal Transit System Ltd in rent, as per the report.

Out of 17 working public sector undertakings (PSUs) whose books were checked, 11 earned profit of Rs 1,315.42 crore, five incurred loss of Rs 2,950.45 crore and one PSU was at breakeven, the CAG report indicates.