Call to ban online travel companies

Tribune News Service

Shimla, August 18

The Tourism Industry Stake Holders Association today demanded a complete ban on online travel companies from operating in Himachal in the larger interest of survival of stakeholders of tourism industry.

In a statement issued here today, Mohinder Seth, president of the association, said that all the online travel companies are operating without mandatory registration through their portals without any fear of the authorities.

This, he said, was going on despite the rule that no tourism unit or tourism activity can be undertaken without registration with Tourism Department as per the Tourism Development and Registration Act 2002.

Rahul Chawla, Joint Secretary (Travel Chapter), said this illegal operation by online companies was directly affecting the business of travel agencies of Himachal.

He said livelihood of thousands of youth in Himachal is based on travel business. “All the travel agencies run by Himachalis are registered with the Tourism Department whether they are doing online or off line business,” he said.

Seth said the online travel companies are operating in Himachal without any registration with Tourism department are a big blow for hotel industry also.

“These online travel companies are booking the rooms on 75 to 80 per cent discounted tariff than the tariff fixed by the Department of Tourism which is a clear violation of tourism Act and rules. This is directly affecting the business of registered hotels, home stay and bed and breakfast units because there is clear provision in the tourism rules that no unit can offer more than 50 per cent discount on fixed tariff and in case the room is booked for less than 50 per cent of the fixed tariff then there is a provision of fine under the tourism Act,” explained Seth.

Seth demanded that the government should take action against the online travel companies who are operating in Himachal without the mandatory registration. “This will help in increasing the revenue of the government and these travel companies will not be in a position to offer more than 50 per cent discount on fixed tariff,” he said.

He said the online travel companies have to be made answerable to the tourism department.