Scars Of Pandemic, Natural Disasters Yet To Heal For Himachal Pradesh Tourism Sector
Shimla: Himachal Pradesh, famous for its scenic landscapes, has long been a much sought-after tourist destination. However, the double whammy of the pandemic and a slew of natural calamities has virtually destroyed the tourism sector that contributes 7.78% to the state’s GDP.
Alok Sood used to run a luxurious hotel in Naldhera, about 24 kilometres from Shimla. The facility, which used to be abuzz with tourists, was sold due to its paucity. “Before 2020, the hotel was bustling with tourists around the year, with bookings getting full in advance during Diwali, Holi, and Christmas. However, the Covid-19 pandemic and subsequent disaster dashed all hopes. During the lockdown, the hotel was empty, and the entire staff had to be benched mandatorily. The debt burden swelled so much that the hotel had to be sold in 2023. There was a time when we used to see turnover worth crores annually, but today we have to stay at home. Even passing by that place brings tears to our eyes,” Sood added.
Tourists at a site in Himachal Pradesh. (ETV Bharat)
The Economic Survey 2024-25 states that the tourism industry contributes 7.78% to Himachal Pradesh’s gross state domestic product (GSDP), driven by activities like hospitality, transportation, handicrafts, and other allied industries. It contributes over Rs 14,000 crore to the GSDP and employs a large section of the population. However, the hopes and dreams with which tourism entrepreneurs in Himachal Pradesh started their hotels and allied businesses have either closed or are on the verge of closure.
Rajiv Verma, a Mandi resident, built a hotel on his father’s land in Jibhi 15 years ago. Business went well for a few years, but now everything has come to a standstill. After selling the hotel, Rajiv is working in a travel agency. “From 2014 to 2019, the hotel was almost full every season. Tourists from Delhi, Chandigarh, and Mumbai would come here on weekends. Until 2018, we had to close bookings two months in advance. As soon as the lockdown was imposed in March 2020, all bookings were cancelled. For two years, the hotel barely had 10% occupancy. Paying bank loan instalments and staff salaries became impossible. The natural disaster in 2013 was the final nail in the coffin, as roads were closed for several weeks, rendering the hotel empty. In 2024, we decided to sell the property to repay the bank loan,” he added.
Till April 2025, 4,467,051 tourists visited Himachal. (ETV Bharat)
In 2017, Himachal Pradesh received 196.02 crore tourists. However, the figure was never reached after that. While the number of tourism infrastructure, such as hotels and homestays, has increased rapidly, the number of tourists has not increased proportionately. The state government has set a target of attracting 50 million tourists every year, but this figure hasn’t even reached 20 million. Resultantly, tourism and allied sectors are now facing financial hardship, falling from fortune to ruin.
The adverse turn has made it extremely difficult for small shopkeepers, taxi drivers, guides, handicraft artists, dhaba operators, and those involved in adventure sports to stay afloat. Kuldeep Singh, a member of the Taxi operator and Shimla Taxi Union, said, “Until 2018, we had work for 10 months a year to ferry tourists from the station to hotels and then to various destinations. However, since 2020, that has dwindled significantly. In 2023, the road closures during the disaster reduced our income to almost zero. We were hoping that difficulties would ease after the disaster, but even after 2023, we don’t have much work for about four to five months of the year. It’s just enough to cover our expenses,” he added.
A series of natutural disasters has made it diffcult for the tourism sector to stay afloat. (ETV Bharat)
Sanjauli resident Sanjay Negi has been driving a taxi for the past two decades. During the Covid-19 lockdown, Negi had to sell his old Innova to pay off instalments. “In the first season, we would drive three to four taxis every day. There were a lot of people. In the summer, the car would run from morning till night. Now, if I get one or two bookings a week, I consider it luck. I bought an Innova in 2016. I thought it would become our source of income once our children grew up. But the bank kept sending notices to clear instalments. Out of compulsion, I had to sell the car at half the price in 2021. Sometimes I feel like quitting, but nothing else comes my way,” Negi said.
The tourism industry is struggling to recover from the pandemic shock. In 2019, it welcomed 17.212 million tourists, which plummeted to 3.213 million in 2020 and 5.637 million the next year. In 2022, it was at 15.099 million and reached 16.005 million in 2023, significantly lower than the figures of 2015 to 2019. In 2024, a total of 18.124 million tourists, including 18.041 million Indian and 0.83 million foreign tourists, came, which is less than the 18.451 million footfalls registered in 2016. Till April 2025, 4,467,051 tourists visited Himachal.
Taxi drivers are finding it difficult to pay off their instalments. (ETV Bharat)
The situation has not only affected private hoteliers, as the Himachal Pradesh Tourism Development Corporation (HPTDC) decided to hand over 14 loss-making hotels to private owners in July. The matter went to the High Court when the corporation was unable to provide its retired employees with promised benefits, prompting the court to order the closure of loss-making hotels.
Although various discounts are being offered to attract tourists, their number refuses to increase. Rajiv Kumar, managing director of HPTDC, said, “We have released a monsoon discount package offering 20 to 40% off at tourism corporation hotels. We expect a large number of tourists from outside states to visit Himachal to take advantage of this discount,” he added.
The Himachal Pradesh Tourism Development Corporation (HPTDC) decided to hand over 14 loss-making hotels to private owners in July. (ETV Bharat)
The homestay operators are also not less affected. Homestays in Kullu, Manali, and Lahaul-Spiti were not only a source of stable income but also a medium to directly connect rural communities with tourism. Statistics say 4,905 homestays were registered in Himachal Pradesh as of December 2024, offering approximately 20,099 rooms and 30,881 beds. But now all are in jeopardy.
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