The state’s flagship business event — Bengal Global Business Summit (BGBS), scheduled on April 20 and 21 — has provided a major impetus to the occupancy levels of the hotels in the city with the industry hoping to reach the pre-Covid level faster than its expectations.
According to industry officials and market analysts, the average occupancy levels across different categories in the past have been in the range of 67 per cent to 72 per cent.
In 2019-20, before the full impact of the Covid pandemic, the average occupancy level was at 68 per cent, which came down to 32.1 per cent in 2020-21.
A study by research firm Hotelivate estimates the average occupancy to climb back to 61.1 per cent in 2021-22 and reach 68.4 per cent in 2022-23, which is on a par with the pre-Covid number.
The industry remains optimistic about these estimates and, the easing up of restrictions coupled with big physical events such as the BGBS and conferences, are set to play a key role in the turnaround .
With more than 25 countries having indicated that they are sending delegations to this year’s summit, the hotels in the city have seen a sharp rise in occupancy.
A key enabler has been the state’s initiative to provide the accommodation information in terms of room types and tariffs across major hotels on the website of the BGBS along with contact details which have eased the booking process for the participants.
“The state government has been doing considerable outreach for businesses to come and invest. The summit is coming at a very good time when we are trying to leave behind the pandemic. Hotels have got strong bookings in terms of businessmen and delegations coming to attend this event. The tourism industry is also gearing up to portray itself at the summit,” said Vijay Shrikent, area manager, Taj Kolkata at a Hotel Association of India interaction with The Telegraph.
“There are also a lot of conferences which are happening in recent times and we also have weddings. With the
restrictions being lifted, people are able to attend these events in the same manner as in the past. Corporate bookings are also picking up as offices open up,” said Shrikent.
The trend in Bengal is in line with the national trend.
“With the pandemic subsiding to a great extent, the fear is slowly going away and the hotel industry is seeing very good bookings and the outlook seems to be quite good. Many of the hotels are already back to 2019 levels so far as their bookings are concerned,” said M.P. Bezbaruah, secretary-general, Hotel Association of India.
According to the hospitality industry overview of HVS Ananrock, the hotel sector had ended the year with a countrywide occupancy level of 42-45 per cent, which resulted in a 24-27 per cent increase in RevPAR (revenue per available room) to Rs 1800-2100.
“We expect Indiaoccupancy to improve to 66 per cent in 2022, which along with a 28 percent increase in ARR (average room rent) will push RevPAR to Rs 3,731 during the year,” said Mandeep Singh Lamba, president, HVS Anarock.
ICRA estimates pan-India premium hotel occupancy to be 40-42 per cent in 2022, up from 26-28 per cent in 2021.
