Lok Sabha Question No. 151 (UNSTARRED), answered on 2023-12-04
Subject: Steps to Streamline ITDC Hotels
Ministry: TOURISM
Asked by: Sumedhanand Saraswati

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA

## UNTARRED QUESTION NO.+151 ANSWERED ON 04.12.2023

## STEPS TO STREAMLINE ITDC HOTELS

## †151. SHRI SUMEDHANAND SARASWATI:

Will the Minister of TOURISM be pleased to state:

- the  role  of  India  Tourism  Development  Corporation  in  promoting tourism and hospitality sectors in the country and the number of
- (a) ITDC hotels currently being run in the country;
- (b) whether  the  Government  has  taken  note  of  the  huge  losses incurred by ITDC in recent years and if so, the steps taken by the Government to improve the financial condition of these hotels; and
- (c)
- if so, the details thereof?

THE MINISTER OF TOURISM

## ANSWER

(SHRI G. KISHAN REDDY)

(a): For  tourism  promotion  and  development  in  the  country,  India Tourism Development Corporation Limited (ITDC) has been contributing since the year 1966. At present it is running the following verticals:-

-  Ashok  Group  of  Hotels:  At  present  the  following  hotels  are being  operated  by  ITDC/JV  Company;  The  Ashok  Hotel  and Hotel Samrat at New Delhi, Hotel Kalinga Ashok (Bhubaneswar,  Orissa).  The  joint  venture  company  hotel  is The Ashok Beach Resort, Puducherry with PIPDICL.
-  Ashok Travel and Tours (ATT): Provides various travel related services  like  air  ticketing,  car  rental  services  and  cargo handling.
-  Ashok Consultancy and Engineering Service (ACES): Executing/ implementing agency for various projects of Ministries, Departments and State Governments.
-  Ashok  Events  Division:  Executing/implementing  agency  for various tourism related events of Ministries, Departments and
- State Governments.
-  Ashok Institute of Hospitality & Tourism Management (AIHTM):  Conducts  various  Skill  Development,  Skill  Testing, Certification and Entrepreneurship Development Programme.
-  Ashok International Trade Division (AITD): Currently operates duty  free  shops  at  14  Seaports/locations  for  international tourists.

(b): ITDC  has  not  suffered  losses  during  last  5  years  except  in  the financial year 2020-21 due to COVID-19 impact and lock down restrictions. Profitability position of the Company during last five years is as follows in INR Crore:

| Financial Year   |   Turnover |   Profit Before Tax (PBT) |
|------------------|------------|---------------------------|
| 2018-19          |     379.97 |                     55.33 |
| 2019-20          |     366.29 |                     37.04 |
| 2020-21          |     197.36 |                    -26.61 |
| 2021-22          |     305.34 |                      7.62 |
| 2022-23          |     476.43 |                     85.94 |

In  the  Financial  Year  (FY)  2022-23,  ITDC  registered  a  significant performance with turnover of INR 476.43 Crore showcasing a remarkable  growth  of  56%  compared  to  INR  305.34  Crore  achieved  in the  previous  financial  year.  The  surge  in  profitability  was  equally impressive, with  profit  before  tax  (PBT)  soaring  11  times  to  INR  85.94 Crore  in  FY  2022-23  against  INR  7.62  Crore  and  profit  after  tax  (PAT) multiplying 14 fold to INR 60.33 Crore in FY 2022-23 from INR 4.38 Crore last year.

For the half year ended 30 th  September, 2023, ITDC has achieved turnover of INR 255.04 Crore registering 31%  increase over the corresponding period of last year of INR 195.37 Crore.

ITDC achieved Profit Before Tax and Net Profit of INR 50.9 Crore and INR 37.4 Crore respectively in the first half of Financial Year 202324,  i.e.  an  increase  of  53%  and  60%  in  comparison  to  corresponding period of last year of INR 33.2 Crore and INR 23.3 Crore respectively.

(c): Several steps to improve profitability of ITDC have been taken as follows:-

- (a) Renovation of some rooms in The Ashok Hotel.  Addition of new licensed F&B outlets and health club/spa in recent past.

(b) Renovation  of  48  guest  rooms,  improvement  of  main  lobby, addition of new swimming Pool for guests and a new licensed F&B outlet has been done in Samrat Hotel, New Delhi. (c) Tie ups with most of the Online Travel Agent's for online room bookings has been done.

-  Ashok  Events  Division  has  been  utilized  by  many  Central  Ministries, Government departments, Autonomous bodies etc. for executing their events in India and internationally.
-  ITDC's  Duty  Free  division  has  been  profitable  and  even  as  on  date when due to  the  Pandemic,  most  of  the  Travel  and  Tourism  related business have taken big hits, ITDC's Duty Free business continues to earn profits for ITDC and Government of India.

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