The Sonnet. Telegraph picture

Jamshedpur, Nov. 6: Looking at the financial crisis, the Union tourism secretary Sujit Banerjee in New Delhi recently asked the representatives of FHRAI to cut down the tariffs to avoid a slump in tourism sector, but the hoteliers of the steel city have decided otherwise.

Though the hotels in the city have not received any official directives from FHRAI, people in the hospitality sector say that the high tariff will hardly affect the business in the city as only corporate clients come down to the city on business.

The hoteliers say, in recent times, demand has been more compared to availability of rooms so there is no question of cutting down on room tariffs. “Jamshedpur or Jharkhand is not a hotspot, especially for foreign tourists. Those who come here are on business. So far there have never been a problem with room occupancy. I have not received any official directives from FHRAI and we can only think on the matter after we get it,” said Smita Parikh, the executive committee member of FHRAI, eastern India.

A couple of months ago, the hotels have hiked their tariff and yet the demand for room has not come down. The Sonnet, a four star hotels of the city, has increased its room tariffs in October. While the tariff of single and double rooms has increased from Rs 3,000 to Rs 3,800, a day in a suite would cost now Rs 7,000 as against earlier rate of Rs 5,500.

“It depends upon the hotels whether they would follow the directions of FHRAI. Business has been good in Jamshedpur so I do not think any hotel would appreciate lowering their tariff rates,” said Rajiv Walia, the general manager of Fortune Hotel Centre Point.

According to Jamshedpur Hoteliers’ Association, the directive has been given keeping five-star hotels in mind. They have increased their rate drastically.

“I think the directive is especially for five-star hotels. The room tariff has increased to $300, which is more than other south-east Asian countries,” said Ronald D’Costa, the founding president of Jamshedpur Hoteliers’ Association.