Tourism industry: Govt to privatise PTDC motels

Property of Pakistan Tourism Development Corporation being sold at throwaway prices.

ISLAMABAD: Despite instructions to not privatise Pakistan Tourism Development Corporation (PTDC) motels by the standing committee on tourism and culture, the government plans to privatise the industry.

According to officials, there are discussions taking place between the army and the government for taking over Flashman’s motel in Rawalpindi. Sources revealed that one of the main reasons the army is interested is because the hotel is situated in Rawalpindi Cantonment and is close to the GHQ.  Nonetheless, the government is expected to undervalue the property and sell it at very cheap rates. Privatising tourism related property remains a great challenge for the government as the tourism industry is already termed ‘dead,’ officials said, adding no local or international investors are interested in investing into motels and hotels.

Flashman motel, which comes under the PTDC, was included in the privatisation programme with the approval of the Council of Common Interest and Cabinet Commission on Privatisation in 1997. Accordingly, three transactions, namely Deans Hotel, Peshawar, Cecil Hotel, Murree, and Faletti’s Hotel, Lahore, have been successfully completed till date. Twenty-six of 42 PTDC hotels and motels were included in the current privatisation programme, which includes Flashman motel.

Senator Dr Abdul Khaliq Peerzada said the main aim of privatisation is to improve efficiency and give work to an organisation better than the government. However, Cecil Hotel, a prime property was sold for peanuts and was turned into an apartment building. Deans Hotel was turned into Dean’s Shopping Arcade, which was a sheer violation of rules.

Chairperson Senate Standing Committee on Culture and Tourism Senator Nilofar Bakhtiar told The Express Tribune that she was against PTDC hotels privatisation.

Bakhtiar said that problems emerge after privatisation. The PTDC employees, who got a golden handshake were not given any money after the sale of these hotels and the Privatisation Commission still has to give compensation to PTDC on account of assets of  the above three hotels disposed of, she said.  The standing committee on tourism had unanimously recommended that there should be no further privatisation of PTDC hotels and motels and in case of privatisation of any institution, the Parliament should be consulted and all concerned departments and ministries should be taken on board, the minister added.

Published in The Express Tribune, January 10^th, 2011.