Himachal and Uttarakhand have left tourism in the lurch, complain people dependent on tourists

A bleak winter stares at thousands of men and women, who derive their livelihood from tourism in the hill sates of Himachal Pradesh and Uttarakhand.

With all tourism activity having come to a grinding halt following the most unplanned lockdown anywhere, and that too during the peak tourist season that extends from March to July, their individual stories weave a collective tale of unmitigated gloom.

How to revive tourism industry and restore faith among the people has not quite figured so far in the government’s plans.

Tour operators, hotels, guesthouse and home stay owners, trekking and tourist guides and porters, rafting and adventure activity outfitters, motorcycle tour operators, taxi service providers, line production service providers to the film industry, small restaurants and dhaba owners are all staring at almost zero income this year.

“It seems, we have been abandoned like an illegitimate child in times of a family crisis,” says Vipin Sharma, founding partner of Rishikesh-based Red Chilli Adventure that outfits rafting and trekking expeditions.

“For more than 20 and more, the rafting community in Rishikesh has earned revenue and foreign exchange for the government, provided employment to thousands of local people, stood by the state government in times of natural calamity and disasters, but when we are at the receiving end following the pandemic, they have completely abandoned us. Nobody is even talking about our fate or future,” is a common refrain one hears.

“What we earn during the summer months, we spend during the winters, when we also invest for the next season,” they explain.

For the hill states of Himachal Pradesh and Uttarakhand, tourism remains one of the primary engines of the state’s economy. In 2018-19, the Gross State Domestic Production (GSDP) of Himachal Pradesh was Rs, 182,000 crore, out of which the tourism sector contributed 6.6 percent to the state GDP, amounting to Rs 12,012 crore. This was generated by the inflow of 16.09 million domestic and 356,000 foreign tourists.

Similarly, in Uttarakhand, the sector contributed over 50 percent to the state’s GDP between 2006-07 and 2016-17, clocking a compounded annual growth rate (CAGR) of 5.03 percent, according to a 2018 policy document of the tourism department. This growth was propelled by the inflow of 31.78 million domestic and foreign tourists in 2018. After the 2013 flash floods that devastated Uttarakhand, the PDH Chamber of Commerce and Industry pegged the state’s tourism revenue loss at Rs. 12,000 Crore.

The most defining aspect of tourism in both the states is the central role of micro, small and medium-sized players and the gig economy in delivering bulk of the services to tourists.

The typical definition of a gig economy is dependence on a certain activity for a short duration for generating employment or revenue. “There are very few big players in this business in Himachal. Most of the tour operators offering a variety of activity packages or accommodation providers are small-scale operators. Tourism here is more like a cottage industry. The growth has been entirely organic. It’s for this reason, probably, that we don’t have anybody lobbying for us in the high places, representing our economic interests,” says Karanbir Bedi, a former journalist, who runs Hotel Dayzor in Kaza, Spiti.

The impact of the shutdown has been significant. It has upended future plans for almost everyone associated with the sector. Many have been forced to find alternative sources of income to keep the kitchen fires burning.

Vishal Mehra, a Manali-based tour operator, specialised in providing logistic support to the film industry, who made a beeline to the tourist town for film shooting in the spectacular mountains during the summer months, has turned to selling vegetables to eke out a living. “Since March, I haven’t earned a single penny from my regular business. But the expenses haven’t gone down; you still have to pay your EMIs and bills,” he reflects.

Following the June 4 guidelines issued by the Ministry of Health and Family Welfare, the Himachal Pradesh and Uttarakhand governments are allowing the opening of hotels in a phased manner. But the order comes with a big catch.

It places the onus of preventing guests carrying Covid-19 squarely on the hotel owners. The restrictive order prevents the movement of tourists outside the hotel, apart from undergoing mandatory quarantine. Besides, the establishments are required to implement a lengthy list of SOPs.

“It’s not practical for any hotel to resume business with these guidelines in place,” says Dole Raj, president of Manali Hoteliers Association.

“We have decided not to resume operations for the next few months, until the situation comes under control. We don’t want to be held responsible for the spread of the pandemic. It seems the government has transferred the responsibility to prevent the spread of the disease to the people who earn from tourism.”

The closure of hotels and guest houses has also forced some of the owners to sell their properties at rock bottom rates. “Yes, it’s true that some of the owners have not been able to service the EMIs on loans taken to build the properties. They have no option but to do a panic sale,” confirms Raj.

Trekking and motorcycle tours are two of most popular adventure activities in Himachal Pradesh and Uttarakhand among foreigners. Most of the treks and bike tours are booked almost a year in advance for which the tour operators are paid a percentage of the cost as booking amount.

“In an average season, we service roughly 50-60 motorcycle touring groups and another 20-30 trekking groups,” says Vijay Bodh, who runs Mountain Voyages, a Manali-based adventure activity outfitter, along with his brother Dorjee.

“In almost 20 years of being in this business, we have not seen such economic devastation. There are a lot of people like tour and trekking guides, porters, taxi service operators and hoteliers and guest house owners who depend on us to generate business for them. It’s all gone,” they reveal.

In May, Uttarakhand tourism minister, Satpal Maharaj, announced that over 500 registered rafting guides would be given financial assistance of Rs. 5,000 each. But on the ground, the announcement has remained just words, of another promise that never came through. “None of our guides have got any money nor have we heard anything after the announcement,” says Sharma of Red Chilli Adventure.

According to official figures, Himachal Pradesh had 3066 registered hotels in 2018, but that number is a gross under-representation. Manali alone has over 2,500 hotels, guest houses and home stays.

The real number in the state is in excess of 13,000 establishments that provide employment to large number of local population. They are all, scraping the bottom of the barrel to survive in these tough times. And winter is yet to come.