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This is an archive article published on August 6, 2009

Quietly,B&B units turn ‘hotels’,hit hotel industry where it hurts

Under the garb of ‘Bed and Breakfast (B&B)’ premises,some enterprising residents of the city are running hotels in residential areas.

Under the garb of ‘Bed and Breakfast (B&B)’ premises,some enterprising residents of the city are running hotels in residential areas. These ‘hotels’,which have no tax burden or licences,hit the tricity hotel industry where it hurts the most.

According to rules,UT Deputy Director Tourism Vinod Kalia says,these ‘B&B’ units can have only five rooms,and can charge Rs 700 to 900 per room.

However,some of these units have seven to 12 rooms,and are charging up to Rs 1,200 and Rs 1,500 per room.

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One such unit,Bhatia Service Apartments,has been called “a homestay hotel” on its website. The B&B unit,which falls in the ‘gold category’ of the UT Administration,has “your choice of 11 private rooms”.

When contacted,owner Meena Bhatia told Newsline that there are 12 rooms in the premises,with tariff ranging from Rs 900 to Rs 1,500. She added that usually,only two-three rooms are available. “Nine to ten rooms are always occupied,since we have a tie-up with companies,” she said.

Another gold-category ‘B&B’ unit in Sector 34,Parkside Inn,has seven rooms,owner Rashmi Bhatia told Newsline.

At most of these premises,owners say,guests can have liquor. “We provide them with soda and ice,and also snacks,for which there are charged extra,” Rashmi Bhatia,owner of Parkside Inn,said.

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While tourists are certainly happy with this ‘arrangement’,the hotel industry is feeling the pinch. After purchasing land for lakhs of rupees and investing in a full-fledged hotel,the owners are now being forced to slash their tariff to meet the competition by these B&B units.

The B&B units were registered as part of a Central scheme “for good social interaction”,Kalia told Newsline.

At present,there are 24 B&B units registered and promoted by the UT Administration in ‘silver’ and ‘gold category’.

Home Secretary orders ‘100 per cent audit’

Following inquiries made by Newsline about these B&B units,UT Home Secretary Ram Niwas has instructed the Director Tourism to conduct a “100 per cent audit” into their functioning.

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Niwas has directed to constitute a team comprising senior officials of the Tourism Department,the Estate Office and an Accounts officer to look into the functioning of these B&B units. He has sought a report into the number of rooms these units are offering,and their tariff structure within ten days.

Information regarding the inquiry has also been marked to the Station House Officers (SHOs) of the area where these units are operating.

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