Even as tourists continue to flock to Puducherry, the business sector has taken a beating due to the cash crisis.
The classified hotels in Puducherry are waiting for the election process to draw to a close, in order to petition the government to address their problems.
The Hotel Association of Pondicherry’s Executive Committee member, Anand, said that the occupancy rate in hotels had dropped by 10 to 15 per cent.
“Many tourists book hotel rooms online or through travel agents. The occupancy rate at hotels has not taken much of a hit. However, restaurants have seen a drop of 30 to 40 per cent in business. We do not have enough change to give to the customers even when they have Rs 2,000 notes,” he said.
The dependency on cash in restaurants has not declined either.
“Local customers are facing problems in withdrawing cash at the ATMs and foreign tourists are unable to exchange money. This has reduced the flow of customers to restaurants. They do not prefer eating out. If this situation continues, the arrival of foreign tourists is expected to reduce in the coming days,” said Mr. Anand.
He added that the Hotels Association of Pondicherry on Tuesday submitted a memorandum to the Lieutenant Governor, the Chief Minister and the Tourism Minister, requesting them to ensure availability of cash in the banks.
“The Central government is coming out with new and contradictory announcements every day. This has left the business community confused. We are preparing a comprehensive memorandum, incorporating even the problems of the Goods and Services Tax,” he said.
Tourism Director R. Mounissamy, however, struck a more positive note, stating that there was no slump in the arrival of tourists.
“Tourists continue to visit Chunnambar Boat House and we had garnered up to Rs 3.5 lakh in revenue last week,” he said.
