In the past, Kolkata was the last resort for hospitality industry honchos. Mumbai and Bangalore were the preferred destinations. But thanks to the economic resurgence in West Bengal’s capital, perceptions at last are changing and Kolkata’s five star hotels are witnessing an unprecedented room occupancy rate.

The average rate of occupancy in the city’s five star hotels, currently, is 90 per cent. Though in the December-January conference season, bookings are high, experts believe the present buoyancy is not short-term and that the boom will be sustained. “I don’t think we can put down the good performance to only conferences and events,” says Modhurima Sinha, director communications, Taj Bengal. “The high occupancy reflects Kolkata’s overall business growth.”

Taj Bengal on Belvedere Road has been experiencing a 95-100 per cent occupancy rate. At ITC Sonar Bangla, the occupancy rate has grown by 50 per cent from 2004. The Park is witnessing 100 per cent occupancy, while Hyatt on the EM Bypass is going strong at 97 per cent. The hospitality industry is capitalising on the development and growth of several sectors like IT, telecommunications, infrastructure and, to some extent, manufacturing.

The growth in services has been spearheaded by the IT sector. Against the national average of 36 per cent, IT in West Bengal grew by 70 per cent. All major IT companies have set up shop. These include IBM, TCS, Cognizant, Wipro, Computer Associates, HCL, Mahindra BT and AIG, among the biggies. Among the upcoming projects are development centres by HSBC Electronics Data Processings, Satyam, ITC Infotech, ICICI OneSource, Hinduja TMT and Capgemini. Thirteen IT parks are coming up in the city over the next three years. This will create 13.3 million sqft of built-up space. A “knowledge corridor” is being set up in two phases at New Town where plots and prime walk-in infrastructure will be available for global companies. This is apart from a spate of malls, upmarket housing projects and commercial complexes that are coming up in New Town on EM Bypass on the eastern fringes of the city.

The expansion of the service sector in the city is the key factor to Kolkata’s resurgence, says Ranvir Bhandari, general manager, ITC Sonar Bangla. “Kolkata is a fertile ground intellectually. The service sector is bound to flourish here.”

“The boom is here to stay since Kolkata is on resurgence path, what with the state domestic product having registered a growth of 7.1 per cent in the 1993-2003 period against the national average of 6 per cent,” says Rahul Saraf, managing director, Forum Group.

No wonder, business travel is keeping room service busy.

Says Amit Nag, director of marketing, Hyatt Regency, “There has been a record rise of 17.7 per cent in star hospitality occupancy in December-January over the corresponding period last year. I expect 25 per cent growth this year.” The boom means prices for rooms have escalated. Average room rates, which languished at Rs 4,500 till six months back, are nearing the Rs 6,000 barrier.

(www.dnaindia.com)