Chennai: The state government-owned Tamil Nadu Tourism Development Corporation (TTDC) has registered a dip in gross profits by about Rs 3 crore during the 2013-14 fiscal, with almost all its divisions turning in a dismal performance. The decline in profits is largely attributed to the negative growth recorded by both hotels and transport divisions.
The corporation has 54 hotels across Tamil Nadu and a strong edge over many private players in having greater visibility among hill resorts and on beaches in the state. It is operating 24 hotels, 21 of them and four restaurants having been franchised. The corporation recorded a turnover of Rs108.61 crore as against Rs106.59 crore in the previous fiscal and a gross profit of Rs16.05 crore and Rs19.64 crore during this period.
Despite these losses, the corporation, for the first time since its inception 43 years ago, presented a dividend of Rs3.13 crore during the 2013-14 financial year. It registered a net profit of Rs12.42 crore, which is about Rs4 crore less than the sum in 2012-13 (about Rs16.25 crore).The hotel division registered a negative growth of 1 per cent. It’s turnover was pegged at Rs80.4 crores. The profitability of the hotels division has been eroded due to sluggish growth in lodging and boating, negative growth in bars and a higher incidence of special repairs to the tune of Rs2.45 crore.
While both the lodging and catering divisions registered 3 per cent and 10 per cent growth, respectively, the boating sector achieved a growth of 4 per cent.The turnover from bars too has reduced by 8 per cent and the declining trend, which commenced during the 2012-13 fiscal, is mainly attributed to the levy of 14.5 per cent VAT on the sale of liquor.
