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Crisis for Himachal’s Tourism Industry Deepens with Peak Season Washout for Second Consecutive Year
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Stakeholders of the tourism industry face financial hardships as working capital exhausts completely
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Majority of tourism stakeholders not able to benefit from the scheme due to stringent conditions
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Interest subvention scheme yet to be implemented
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Biggest hurdle in the scheme is the cut off date of the outstanding balance of the loan
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Defaulting EMIs ruined the reputation of the stakeholders and bared them to procure financial assistance in future from the financial institutions
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The Association asks the government to ease down the restrictions and conditions on tourists as the daily cases have declined
Shimla-The tourism industry in Himachal Pradesh, one of the major sources of state economy and employment, is bearing the brunt of the pandemic more than any other sector as Covid related restrictions have brought tourism movement to a grinding halt. The sector has reported an estimated Rs. 1500 crores loss since the pandemic. It’s estimated that over two lakh people associated with the tourism sector are now unemployed. There is no count of medium and small-scale tourism-related ventures in Himachal that are now shut because of the pandemic-induced restrictions.
The cab drivers and transporters, who are an integral part of the hospitality industry chain, are also facing hardships. For several, paying instalments of loans procured to buy cabs/carriage vehicles is the biggest challenge. This crisis is not only driving them into a debt trap but also causing extreme psychological stress.
Meanwhile, the state government has failed in providing any substantial relief to the stakeholders of affected sectors. In April 2021, the state government had announced a 50 per cent concession on stage carriage special road tax (SRT) for three months from April. A 50 per cent concession on passenger tax on taxis and contract carriage was also announced along with an interest subvention scheme. The stakeholders say that the interest subvention scheme was yet to be implemented. Also, they can’t take loans as they have defaulted on loan instalments last year.
The situation for this sector has grown grimmer as the peak season gets washout for a second consecutive year. The Tourism Industry Stake Holders Association has once again pleaded Chief Minister Jairam Thakur to rescue the sector and its stakeholders from this crisis by providing reliefs.
“Three months of summer make peak tourist season and play a major role in the sustenance of the hotel industry,” says Mohinder Sethi, President of the Association.
“The tourism industry faced a complete loss of summer season last year due to Covid -19 pandemic. This year too, 75% of the season is lost,” he adds.
“The stakeholders of the tourism industry are facing financial hardships firstly because their working capital has completely exhausted and secondly because tourism in Himachal Pradesh has again come to a grinding halt since March 2021,” he further adds.
He further RBI’s restructuring of loans with a condition that the loan account should be standard as of March 31, 2021. However, the hotels have no occupancy for the last three months due to which the stakeholders could not pay their EMIs for March, April and May months.
The tourism industry remained closed for almost eight months last year due to nationwide lockdown. Now this year again just before the tourist season the second wave Covid pandemic has compelled the hoteliers to keep their units closed due to nil occupancy, Sethi says.
Stakeholder Deprived of Availing Benefits of RBI Scheme
The RBI has introduced the Emergency Credit Line Guarantee Scheme 3.0 to provide relief to the tourism, hospitality and travel sector but the majority of tourism stakeholders could not take benefit of this scheme due to its stringent conditions, Sethi says.
“The biggest hurdle in the scheme is the cut off date of the outstanding balance of the loan, which is 29 February 2020 that also with a condition that the account should not have a default of more than sixty days as on February 2020, Sethi adds.
He argues that the majority of tourism units were compelled to take fresh loans during the past year to meet their running expenses of the units because the state government had extended no assistance last year.
The Association says that the RBI needs to make amendments by extending the cut off date to March 31, 2021, and relax the condition of the number of days of default of EMI.
“The state working capital interest subvention scheme is still awaited. It has been observed that the process of extending help to the industry takes a very long time which creates a big gap between the ground reality,” Sethi says.
He says that the fear of declaring loan accounts as NPA by banks is a live example of it.
“If the financial assistance were provided on time it would have saved many tourism units loan account from slipping to non-performing accounts,” Sethi says.
He says that the labelling of NPA accounts has ruined the reputation of the stakeholders and bared them to procure financial assistance in future from the financial institutions. The tourism industry is worst affected throughout due to pandemic, he adds.
“The stakeholders are helpless because state government provided no financial assistance. On the other hand, there is no inflow of tourists to the state due to stringent restrictions imposed by the government to prevent the spread of the Coronavirus.
The Association is now asking the government to ease down the restrictions and conditions on tourists as the daily cases have declined.
“Now the graph of Covid cases is drastically reduced, and the need of the hours is to remove the restrictions like e- Covid pass and compulsory RTPCR negative report for tourists intending to come to Himachal. This will give some oxygen to the dying tourism industry because the tourism units can at least generate some revenue to meet their expenses up to some extent during the remaining 25,% tourist season,” Sethi says.
“We request Chief Minister Jairam Thakur to introduce an interest subvention scheme and remove the restrictions on entering the state in the upcoming cabinet meeting to be held on May 5, 2021, in the larger interest of the survival of the tourism Industry, Sethi said on the behalf of the Association.
Solan—In a shocking incident on Monday, an 18-year-old youth, Pravesh, survived a vicious leopard attack in Sarli village of Arki subdivision. The teenager reportedly fought the leopard for nearly 12 minutes before breaking its jaw, killing the animal on the spot.
Quick Thinking Saved His Life
Pravesh told the media that he was walking from the fields to a nearby shop in the morning to fetch milk when the leopard, hidden in the crops, lunged at him. Noticing the leopard’s tail, he attempted to run but fell after a short distance. During the attack, he covered his neck with his hands to protect himself from fatal bites.
The teenager continued to struggle with the leopard, repeatedly attempting to put distance between himself and the predator. In a desperate move, he grabbed the leopard by its mouth, twisted its jaw, and broke it, killing the animal instantly. Pravesh sustained multiple injuries, including deep claw marks, and is currently receiving treatment at Arki Hospital. Police and forest department teams have launched an investigation into the incident.
Serious Allegations of HP Forest Department’s Negligence
One of Pravesh’s relatives accused the forest department of negligence, noting that similar attacks had occurred in the area previously.
Earlier, a leopard had attempted to attack a scooter rider, who managed to escape. The family said they had informed the forest department on March 6 about potential danger, but no concrete action was taken. Villagers waited for three hours for a forest team to arrive, but none came. When the Block Officer eventually visited, he reportedly told villagers to ensure their own safety. Requests for cages to capture the leopard were also denied, with officials asking for written complaints instead.
SHIMLA | 7 August 2025 –The India Meteorological Department (IMD) has forecast light to moderate rainfall across Himachal Pradesh over the next two weeks, with isolated heavy to very heavy showers likely over the low hills, plains, and adjoining mid-hill regions. While the ongoing monsoon remains vital for agriculture, it also brings an elevated risk of localized flooding and landslides.
Week of August 8–14
Maximum temperatures will range from 22°C to 34°C, depending on elevation—22°C to 28°C in high hills, 26°C to 30°C in mid-hills, and up to 34°C in lower regions. Minimum temperatures are expected to remain near normal, between 12°C and 24°C. Cooler conditions may persist in districts like Kullu and Lahaul-Spiti.
Week of August 15–21
Similar rainfall patterns are expected to continue, with scattered heavy rain episodes. Temperature trends will remain stable, though slightly below-normal maximum temperatures are likely in parts of Lahaul-Spiti, Mandi, Kangra, and Kullu districts.
Outlook for Late August
Rainfall is expected to remain broadly normal, with region-specific variations. Districts such as Kinnaur, Shimla, and Sirmaur may see below-normal precipitation, while Una, Kangra, Hamirpur, Bilaspur, and Solan are likely to receive above-average rainfall. Both maximum and minimum temperatures are forecast to stay close to seasonal norms.
Officials at the Meteorological Centre in Shimla have urged residents and local authorities to remain alert for sudden heavy downpours, which could disrupt road connectivity and trigger landslides—especially along vulnerable hillside routes. Past monsoon episodes have blocked key highways, including routes between Mandi and Kullu and near Banjar, underscoring the ongoing challenges in the region.
This advisory comes as Himachal Pradesh continues to face the dual pressures of sustaining its agriculture-dependent economy while managing the life and infrastructure risks posed by an active monsoon. Continued vigilance and preparedness remain crucial.
SHIMLA | 7 August 2025 –Himachal Pradesh continues to deal with the impacts of the 2025 monsoon season, reporting extensive property damage, loss of lives, and widespread disruptions across the state. According to the official reports from the State Emergency Operations Centre (SEOC), the Department of Revenue, and the India Meteorological Department, from June 20 to August 6, 2025, heavy monsoon rains caused significant damage across multiple districts:
- Casualties: 199 deaths due to landslides, flash floods, cloudbursts, drowning, lightning, electrocution, and accidents; 304 injuries reported.
- Property Loss: Extensive damage to houses (both pucca and kaccha), shops, factories, labor sheds, animal shelters, and substantial crop losses in agriculture and horticulture.
- Public Infrastructure: Over ₹1,900 crore in damages to roads (including PWD), power supply, health, education, fisheries, rural and urban development, and animal husbandry.
Most affected districts include Mandi, Kangra, and Hamirpur, with severe crop and infrastructure losses.
Additionally, 91 deaths occurred due to monsoon-related road accidents.
Public Utilities and Infrastructure Disruptions
The SEOC report dated August 7, 2025, highlights ongoing disruptions:
- Roads Blocked: About 493 major roads and 3 national highways (NH-305, NH-21, NH-05) remain blocked by landslides and floods.
- Power Supply: Disruption of 1,120 distribution transformers (DTRs).
- Water Supply: 245 water schemes affected, threatening access to potable water for communities.
Key blockages include NH-21 between Mandi and Kullu and NH-305 near Banjar and Jhed.
Weather Forecast and Warnings
The India Meteorological Department’s forecast valid from August 7, 2025, includes:
- Isolated heavy rainfall expected throughout the week.
- Thunderstorms and lightning predicted in isolated areas.
- Minimum temperatures near normal or slightly below.
- Maximum temperatures showing a moderate increase.
The public is urged to remain vigilant due to the risks of further landslides and flash floods.
Himachal Pradesh remains vulnerable as the monsoon season continues, with thousands affected by damage, displacement, and disruption of essential services. Authorities are continuing with rescue and recovery operations and are urging residents to stay alert to the ongoing adverse weather. This situation highlights the pressing need for enhanced infrastructure and disaster management strategies to mitigate monsoon-related risks.
Himachal’s LPG Supply Hit Amid Global Tensions, Likely to Affect Hospitality Industry
Himachal Teen Survives 12-Minute Leopard Attack, Kills Predator in Self-Defense
Weather Forecast for Himachal Pradesh For the Next Two Weeks
Monsoon 2025: Himachal Pradesh Suffers 199 Casualties, Over ₹1,905.50 Cr in Damages
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