CAG: 24 Haryana Tourism complexes suffered loss of over Rs 35 crore in 5 years

Other factors responsible for losses are high manpower costs coupled with low occupancy of rooms, it stated.

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Incorporated in 1974 to promote tourism in Haryana, HTCL is operating a total of 43 complexes. The audit report states that the number of loss-making tourist complexes increased from 26 in 2010-11 to 32 in 2014-15.

Surprisingly, according to the audit report, HTCL has not even formulated any policy to keep a check on quality of services to be provided in its complexes.

The CAG report placed before the Haryana legislative assembly recently mentions that the committee on public undertakings had recommended in March 2013 that the HTCL should keep food cost close to the norms and efforts be made to maintain quality and cost should be reasonable. “The company (HTCL) failed to control its food cost during 2013-14 and 2014-15,” reads the report.

It further mentions that the food cost at the complexes, namely Badkhal in Faridabad, Hermitage Huts at Surajkund, Hotel Rajhans at Surajkund,Yadavindra Gardens at Pinjore and Barbet at Sohna, was more than the norms.

“The company (HTCL) needs to deploy new tourist-friendly facilities to attract more tourists to its complexes by analysing their feedback,” the audit report mentions.

Regarding the non-achievement of targets by HTCL complexes, the audit report mentions that the complexes with shortfall in targets of above 20% had increased from three in 2012-13 to 39 in 2014-15. After the study of key parameters of profitability, occupancy and other cost factors, the auditors found that that the number of HTCL complexes achieving the quarterly targets decreased from 12 in 2010-11 to just two in 2014-15.

The auditors after finding that the occupancy levels of HTCL complexes ranged between 55 per cent to 71 per cent during 2010-2015, have come to a conclusion that the HTCL had neither fixed any targets for occupancy of its complexes nor worked out break even level.

After finding that HTCL was not ensuring regular inspections to check and maintain the quality of services, the auditors have come to a conclusion, “Thus, an important mechanism through which services and customer satisfaction should have been closely monitored and improved, was treated in perfunctory manner.”

The audit also observed that despite consistent high manpower cost during 2010-15, management did not take steps for its rationalisation.