Hospitality sector to hit NY jackpot in state

Bengaluru: Karnataka’s hospitality sector will ring in 2024 with a bang, expecting to rake in over Rs 6,000 crore between December 25 and Jan 1 as tourists descend in droves to welcome the new year.

Bengaluru alone is likely to see a turnover of more than Rs 600 crore on the last day of the year, with over 50,000 bookings across the hospitality sector showing the enormous attraction of the tech hub for party-goers. 

“Hotels in Chikkamagaluru, Hampi and several other places across Karnataka are packed with tourists this week. These tourists are headed to Bengaluru for celebrations on December 31,” P C Rao, President of Bruhat Bengaluru Hotels Association, told DH.

Several five-star properties across the state and Bengaluru have been booked two weeks in advance. 

A senior manager (communications) with a five-star property in Bengaluru was ecstatic to see the cash registers ringing. “We have been receiving calls for booking rooms the whole day. It makes us happy that the business has reached the pre-Covid levels. We are expecting to be sold out by Saturday night,” he told DH.

Brigade Road and surroundings, where revellers congregate on Dec 31, are expected to receive an estimated 2.5 lakh people, according to a recent survey by the Brigade’s Shops and Establishments Association. 

Suhail Yosuf, Secretary, Brigade’s Shops and Establishments Association, said this year’s crowd is going to be the biggest. “This will be the biggest crowd that this place has seen in the last 21 years,” he said, adding it would top the rush seen on Christmas Eve.

According to the Bangalore Trades Association, hotel business has almost doubled this year. “There’s a lot of promotional activities that retailers have done this year as a part of the Bengaluru Habba that increased the walk-ins during this season,” Vijayashekar Ravi Deepam, president of Bangalore Trades Association, told DH.

“This is also that time of the year when we see the NRI crowd come in to shop and soak in the city’s NY fervour.”

With tourists trying to squeeze into the city, hotel room rents are skyrocketing - a room that would cost Rs 6,000 is going for nothing less than Rs 12,000. “The profits made by the hotels — both food and dining and stay — is more than 50 per cent,” he added. 

Ramesh Chandra Lahoti, President of Federation of Karnataka Chambers and Commerce Industry, credited this boom to ‘Brand Bengaluru’. “Bengaluru is a great place for celebrations, hence the response is not surprising. People want recreation, and what’s better than Bengaluru?” he said.

Considering the overwhelming response in reservations, the Bruhat Bengaluru Hotels’ Association has written to the government seeking an extension in the deadline for celebrations, which will in turn help facilitate more people. 

Revellers are all pumped up but some have been put off by the exorbitant rates. 

“I tried booking tables for my friends and myself, but there were no tables available anywhere. And the ones that are available are charging Rs 80,000 for a table of eight and Rs 60,000 for a table of five. The rates are too high this year,” said Siddharth, a resident of Bengaluru.

Highlights - The Big Rush  Bengaluru is likely to see a turnover of more than Rs 600 crore on Dec 31 Over 50,000 bookings across the hospitality sector in state capital for NY Brigade Road, where revellers congregate, is expected to receive an estimated 2.5 lakh people A hotel room that would cost Rs 6,000 is going for nothing less than Rs 12,000 in B'luru

Quote - Hotels in Chikkamagaluru Hampi and several other places across Karnataka are packed with tourists this week. These tourists are headed to Bengaluru for celebrations on December 31 - P C Rao President of Bruhat Bengaluru Hotels Association

Quote - We have been receiving calls for booking rooms the whole day. It makes us happy that the business has reached the pre-Covid levels. We are expecting to be sold out by Saturday night - Senior manager (communications) of a five-star property in Bengaluru