Telangana strike has hit hotel biz in AP: Association

"The business has come down substantially... Right now the occupancy rate has come down by 22 to 30 per cent and revenue from restaurant business has slumped by 40 per cent," Andhra Pradesh Hotels Association President G V Krishnaiah said here.

He was speaking to reporters after attending the 60th Annual General Meeting of South India Hotels and Restaurants Association (SIHRA). Krishnaiah, also the SIHRA Vice-President, attributed terror attacks to dull hotel business saying inflow of tourists into the country had come down.

However, the trend was not going to affect the growth of the industry. SIHRA officials said 595 luxury hotels with a total room capacity of 44,800 were expected to be added in South India by 2013.

"It is one of the major additions. In Tamil Nadu alone there will be 243 hotels, Puducherry 10, Kerala 37, Andhra Pradesh 116 and Karnataka 189 hotels. The total room additions will be 44,800", SIHRA Advisor R Rangachari said.

SIHRA Secretary General Sudheer Nayar demanded industry status to hotel business as the hotels were covered under the Shops and Establishments Act. He said 12 to 14 per cent of the total revenues were spent on electricity and water charges.

Earlier, at their 60th AGM Bangalore-based hotelier K Syama Raju was elected SIHRA President. The other office bearers include Jose Dominic, Vice President, (Kerala), K Murali Rao, Vice President(Tamil Nadu and Pondicherry),  K L Ramanatha Bhat Vice President (Karnataka) and T Nataraajan as Hony Secretary of the Association.