Tourism – Himachal Pradesh Moves to Outsource Eight Loss-Making HPTDC Properties
Tourism – Facing sustained financial losses, the Himachal Pradesh government has decided to outsource eight hotels, restaurants and cafes owned by the Himachal Pradesh Tourism Development Corporation (HPTDC). The properties will be handed over to private operators under an operate-and-maintain arrangement in an effort to improve management efficiency and reduce the corporation’s financial burden.
Decision Approved by State Leadership
According to officials familiar with the development, the proposal to outsource the selected tourism properties has received approval from Chief Minister Sukhvinder Singh Sukhu. The Managing Director of HPTDC recently informed the Principal Secretary of the Tourism Department through an official communication that the plan had been cleared at the highest level of the state government.
To facilitate the process, a Deputy General Manager-level officer has been designated as the nodal officer. The official will coordinate with the Himachal Pradesh Infrastructure Development Board to oversee the outsourcing procedure and ensure that the transition to private operators follows the required administrative framework.
List of Properties Identified for Outsourcing
The eight tourism units proposed for outsourcing are located across several popular destinations in the state. These include Old Ross Common in Kasauli, Apple Blossom in Fagu, Hotel Sarvari in Kullu, Hotel Lakeview in Bilaspur, Hotel Mamleshwar in Chindi, Hotel Chanshal in Rohru, Hotel Shiwalik in Parwanoo and Giriganga in Kharapathar.
Among these properties, Apple Blossom in Fagu and Hotel Lakeview in Bilaspur are the largest facilities, each offering 26 guest rooms. Hotel Sarvari in Kullu follows with 18 rooms, while the remaining properties are comparatively smaller establishments serving tourists visiting nearby hill destinations.
Officials indicated that these locations were selected after assessing their operational performance and maintenance requirements. Several of the properties have struggled with declining infrastructure and limited resources for upgrades in recent years.
Cabinet Decision Laid the Groundwork
The outsourcing move is part of a broader policy decision taken earlier by the state cabinet. On June 28, 2025, the cabinet had initially approved a proposal to outsource 14 HPTDC units across the state in an effort to improve operational efficiency.
However, the final list was later revised, and six properties were removed from the proposal. One of the properties excluded from the plan was Kashmir House in Dharamsala, which later became the headquarters of the tourism corporation. Following these revisions, the number of properties selected for outsourcing was reduced to eight.
Financial Strain on Tourism Corporation
The Himachal Pradesh Tourism Development Corporation currently operates 55 hotels, restaurants and cafes across the state. Officials say a significant portion of these establishments have been incurring financial losses.
Government sources indicate that nearly 35 of these units are currently running at a deficit, placing pressure on the corporation’s overall financial stability. The outsourcing model is expected to bring in private sector expertise in operations, maintenance and hospitality management, which could potentially help revive struggling properties.
The government believes that private operators may be better positioned to invest in upgrades, improve service standards and attract more visitors to these locations.
Debate Over the Future of Government Tourism Assets
The outsourcing decision has also generated discussion within the tourism administration. Earlier, HPTDC Chairman Raghubir Bali had appealed to the state government to reconsider the plan.
He argued that instead of transferring the management of these properties to private operators, the government could invest in renovation and modernization. According to him, many of the hotels are in need of refurbishment and improved facilities, and upgrading them could help bring back tourists while keeping the properties under government management.
Bali suggested that restoring these assets with proper funding could strengthen the state’s tourism infrastructure and preserve the corporation’s role in hospitality services.
Focus on Reviving Tourism Infrastructure
Despite differing views, the government’s decision reflects a broader effort to address financial challenges faced by state-run tourism infrastructure. Officials say the outsourcing process will focus on ensuring that the properties continue to serve tourists while maintaining operational standards.
The coming months are expected to see further steps in the selection of private partners and the formal implementation of the operate-and-maintain agreements for the identified properties.