| The scarcity of hotel rooms is going to persist well beyond the Commonwealth Games in 2010, with a projected shortfall of about 100,000 rooms in the country through 2011, according to a new study.
The scenario in Delhi, the seat of Commonwealth games the Capital is no better. Only about one-fifth of rooms expected to achieve completion out of total requirement of about 50,000 rooms, if one were to go by the proposed investments so far, the study points out. Skyrocketing land prices, fluctuating taxation norms, poor infrastructure, corruption and red-tape are some of the major roadblocks blocking domestic and foreign investment in hotel sector, according to a Ficci-E-Valueserve study 'Investment opportunities in hotel Infrastructure in India'.
The industry estimates fix the requirement at 1,50,000 rooms which would require huge investment of $17 billion (Rs 79,900 crore), but the planned investment falls much below the mark and would be able to add only 53,333 rooms, the study noted. Observing that the Commonwealth Games was "the single largest, immediate opportunity expected to fuel the unprecedented increase" in proposed new hotels in Delhi and the NCR, the study notes the proposed investment will add only about 10,000 rooms, far below the target of 50,000 rooms
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