New Delhi, Nov 13: While the divestment of India Tourism Development Corporation (ITDC) is only a matter of time, the ailing corporation is, however, showing signs of revival. The company has shown a topline growth of about 9.5 per cent during April-October 2000, compared to the same period last year. Three of its properties have shown an operating profit.These three, the Qutub Hotel in Delhi, Ashok Bangalore and Ashok Manali, have shown operating profit during April-October 2000, ITDC chairperson Asha Murty told The Financial Express.
The ITDC's turnover has gone up to Rs 151.76 crore during April-October 2000, compared to Rs 138.6 crore during the same period last year. The increase in turnover has been attributed to the high occupancy growth and rationalisation of expenditure.
``Despite a general slump in the hospitality business and, in spite of an adverse market perception that the company is on the block, 14 out of 26 hotels of the company have shown a marginal occupancy growth between two-three per cent during April-October 2000,'' Ms Murty said.
Infact, during October, the combined occupancy of these hotels have gone up to 40 per cent, she added. The occupancy of these hotels in October last year was 37 per cent.
Ms Murty, however, conceded that the revenue condition of the company remained under pressure. Without disclosing the bottom line growth during the period, Ms Murty said, ``The revenue position has not improved due to the higher wage bills and other fixed costs.'' The wage bill of ITDC hotels is about 57 per cent, compared to 16-20 per cent wage costs in case of other private hotel chains, she said. ITDC's wage bill stood at Rs 63.79 crore during the first half of the current fiscal, against Rs 53.53 crore in the same period last year. The corporation, reportedly, suffered losses worth Rs 12 crore during the first quarter of the current fiscal.
ITDC's recent decision to revise wages of its non-executive staff, added a financial burden of about Rs 20 crore as additional annual wage and Rs 30 crore as arrears. In order to curb expenditure and increase revenue, the corporation has identified a few key areas effecting savings. The areas include saving on power and fuel, and food cost. In order to reduce its wage bill, the corporation has already given in-principle approval to a voluntary retirement scheme (VRS) for the company's employees and a rollback in the retirement age of its staff from 60 years to 58 years.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.