Will The Two Govt. Hotels Survive? - Eastern Mirror
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Will the two Govt. Hotels survive?

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By EMN Updated: Sep 02, 2014 11:43 pm

Z Lohe

[dropcap]T[/dropcap]he Govt. of Nagaland has only two hotels, namely, Hotel Saramati, Dimapur and Hotel Japfu, Kohima. These two Govt. undertaking hotels were the pride of Nagaland for several years catering to the needs of the State in absence of any better Govt. accommodation and private hotels. The other day, a news item on non-payment of salaries to the staff of Saramati Hotel, Dimapur appeared in local papers. In the same item, the Managing Director (MD) of Nagaland Hotels Limited(NHL) frankly highlighted some of the predicaments being faced by management. It is pertinent to introspect what are those mentioned factors and else which may force the NHL to face the same fate of Dimapur Sugar Mill, Khansari Mill, Coffee Board, etc.What the MD, NHL said about ‘stiff competition’ from private sector is valid. Of late, 3-star category private hotels have mushroomed in both Dimapur and Kohima equipped with better and modern amenities whereas NHL has 19th century amenities in comparison. The proprietors too are more influential to seize those opportunities to host lavish Govt. sponsored functions and accommodate State guests in their hotels which otherwise would have been the chances for NHL to earn substantial profit.
I did not investigate the present position, and yet it is relevant to cite the past practice of whoever was the Chairman of NHL used to lodge and eat in these two hotels free of cost by himself or his men in the name of being the boss. Availing the facility in such manner once in a blue moon is tolerable, however, by my knowledge it used to be rampant causing huge financial loss to hotels.
Both Saramati and Japfu are ‘over-staffed’ as reported by MD, NHL. Japfu has total 70 staff to look after 26 guest rooms, and their salary comes to Rs.14 lakhs per month roughly. Saramati has 73 staff to manage 25 guest rooms, and their salary comes to Rs.13 lakhs per month roughly. On query, each hotel needs not more than 50 staff to effectively run it. Thus, it has total 40 excess staff. For salary component for those 40 odd staff becomes substantial annually.
The question of who is responsible for induction of excess staff? The politicians are mostly responsible. Why Sugar Mill, Dimapur failed? Many factors might have attributed to its failure. But the biggest setback was the over staff. I learnt that Sugar Mill required 350 staff to run it whereas politicians filled the sugar mill with people without limit. We, the politicians, in Nagaland have non-Midas touch. King Midas turned all what he touched upon into gold. Whereas, all what we politicians touch used to turn into liability, ruin and abandonment. The mill could not mint adequate money to pay salary for the staff, and it had to be wound up. Same thing may happen to the two hotels which are finding it difficult to pay staff salary with its own earning. When it fails to survive on its own, how long should the Govt. pump in additional funds to sustain it? When it becomes sick and a liability to retain it, then comes the issue of how 140 staff would be alternately accommodated and the question of privatisation comes.
Let us see how the present set of authority will devour it or nurture it to revenue earning Limited.

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By EMN Updated: Sep 02, 2014 11:43:40 pm
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