The first ever sector that severely deteriorated after the bifurcation of United Andhra Pradesh is Hotel Sector in Hyderabad. The city enjoyed the monopoly in this sector since last 3 decades in attracting tourists and foreign visitors. Hotel industry in Hyderabad has start losing importance since last one year. Hotel Industry is confident on its business for next ten years because of Hyderabad having common capital for two states.
But Chief Minister Chandra Babu decision to shift AP’s administrative activity from Vijayawada is getting severe impact on Hospitality sector in Hyderabad. AP Government’s much publicity for its new capital Amaravathy hits Hyderabad Hotel sector badly. Government officials, foreign delegates and industrialists have visited Amaravathy from last 30 days which would increase the occupancy rate in Vijayawada and Guntur Hotels.
Telangana State Hotels Association General Secretary B. Jagadeesh Rao said that current occupancy rate in Hyderabad hovers around 50% - 60%. He believed that AP Government has aggressively concentrated on Tourism sector than Telangana Government. At the same time, Occupancy rate in Vijayawada hotels has increased very abnormally. 80% of hotels and motels are occupied in Vijayawada. Now hotels have planned to construct near Gannavaram and Amaravathy region.
