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Karnataka tourism corporation reports profits

Our Bureau

Bangalore, July 5

IN a bid to expand its revenue stream, the Karnataka State Tourism Development Corporation (KSTDC) has decided to set up an `one-stop shop' to house the gamut of tourism services such as reservation, cafeteria, ATMs and foreign exchange counters in the heart of the city.

The premises would be let out to branded services merchandise and service providers. The new venture, expected to start in about two months from a leased premises, is expected to earn a net revenue of Rs 23 lakh per annum. The corporation, which made a loss of Rs 20 lakh during 2002-03, has for the first time turned to black after several years with an operating profit of Rs 53 lakh during the fiscal 2003-04. Its turnover saw an increase of more than 30 per cent at Rs 19.88 crore (Rs 13.88 crore).

Addressing a press conference here on Monday, Mr Abdul Sattar Sait, Chairman of KSTDC, said apart from expanding the revenue earnings through various schemes, the corporation was also planning to rationalise its costs to emerge more viable and competitive.

It plans to offer voluntary retirement scheme to reduce the staff strength by 83 employees working in different units of the corporation. Mr Sattar said he would be seeking a grant from the State Government to implement the VRS, which is estimated to cost Rs 4.2 crore.

Expressing optimism about the corporation's ability to turnaround faster, Mr Sattar said the proposed Bangalore International Airport project should give an impetus to the tourism industry, resulting in further revenue growth.

Mr Mahender Jain, Commissioner for Tourism and Managing Director of KSTDC, said as part of new activities to increase its revenue potential, the corporation has decided to take up on priority the upgradation of eight properties, which include five Mayura brand of properties at an aggregate cost of Rs 3.87 crore. In addition, a heritage hotel has been proposed to be built at Humpi. Mysore Palace will be provided with light & sound system to enhance its heritage attraction, he said adding it will be opened to tourists by the end of this year.

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Karnataka tourism corporation reports profits



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