Bengaluru: The hotel industry was the worst hit in the last two weeks, with the ongoing Cauvery water agitation marring business. Due to bandhs and the volatile situation in the city, most hotels, bars and pubs remained closed. The days on which there was no bandh too witnessed dull business with people reluctant to step out of their houses.
As a result of the rioting, arson and violence, the city police clamped section 144 in 14 police station limits while the sale of liquor was banned affecting business. Scores of hotels, pubs and bars located in the Central Business District(CBD) witnessed a low footfall while the weekends which usually have the maximum footfalls also witnessed a new low.
Wonderla Resort, which has a water park and resort located on Mysuru Road, was shut for two consecutive days on September 9 and 10 following the tension on the Bengaluru- Mysuru Highway.
“As the tension escalated in the area, we completely shut our operations for two days. However, the resort was re-opened on September 11. Since last weekend the situation has become better and we are expecting more crowds in the coming weekend,” said Mr Francis, manager Wonderla Resorts.
Meanwhile shoppers to the city’s malls and markets also dipped due to the row. “When there was a total bandh, the estimated loss per day was Rs 20 to 25 lakh,’ said an employee of 1MG Mall. The occupancy at city hotels was badly affected as many cancelled their hotel bookings fearing violent reprisals.
Over the last few months, Karnataka has witnessed five shut-downs and this is the sixth bandh. “Rs 160 to 170 crores per day is the loss to the state exchequer on account of less tax inflow on a bandh day. This is based on the average transactions which touch Rs 1600 to 1700 crores in a day and an average tax of 10%.” said a senior official from FKCCI.
