BHUBANESWAR: The Comptroller and Auditor General (CAG) has observed that non-application of commercial prudence by Tourism department in organising the eco-retreats has resulted in heavy losses and low occupancy rates.
According to the report laid in the Assembly on Monday, the CAG observed that the total expenditure on eco-retreats increased from Rs 17.34 crore to Rs 83.39 crore due to rise in number of such facilities but returns were not corresponding. Income went up minimally from Rs 3.85 crore to Rs 7.40 crore during five years period from 2019 to 2024.
An analysis of per retreat expenditure and revenue revealed that the excess expenditure/loss per retreat increased from Rs 4.58 crore in 2020-21 to Rs 10.85 crore in 2023- 24 at a rate of 137 per cent.
The department had introduced in 2019 eco-retreats a glamping (glamorous camping) project to develop Odisha as one of most preferred tourist destinations in India. The number of eco-retreats increased from one in 2019-20 to seven in 2023-24.
The eco-retreats provided accommodation in luxury tented cottages and associated facilities such as a restaurant, conferencing facilities, land/water sports activities. The objective was to provide infrastructure and facilities, services and products on par with a 3-star category hotel and resort.
However, the occupancy rate of tourists in the seven retreats during 2022-23 and 2023-24, ranged from 14 to 57 per cent and 23 to 62 per cent, respectively.
The audit observed that the reasons for low occupancy include lack of marketing initiatives, non-provision of quality foods by the agencies and power fluctuations/outages in different sites.
Though eco-retreat is an appreciable initiative as it promotes sustainable tourism activities and brings employment opportunities, these should have been organised after due consideration to returns on investments and commercial viability, it said.