Why Are Tourists Avoiding Nainital This Summer? Rs 60 Crore Loss And Counting

News18

20-05-2025

Last Updated:
Nainital has seen a sharp drop in tourists this summer, with hotel bookings down to 10–15% and losses nearing Rs 60 crore due to safety concerns and rising travel costs
Nainital, the renowned hill station nestled in the state of Uttarakhand, is experiencing an alarming decline in tourist footfall this summer, traditionally its peak season. From April to June, the city usually sees a surge in visitors from across India, particularly from Delhi-NCR, Punjab, Gujarat, and Maharashtra. However, this year, the picturesque town stands eerily quiet.
Hotels remain largely unoccupied, local markets are subdued, and the iconic boats on Naini Lake lie idle. Tourism operators report a staggering loss of approximately Rs 60 crore so far. The Nainital Hotel Association has confirmed that occupancy rates, which reached as high as 90% in May last year, have plummeted to a mere 10 – 15% this season.
Several factors are believed to have contributed to this sudden downturn. Industry experts and local business owners point to increased parking and toll charges, recent reports of communal tension within Nainital, and a generally strained security situation along the India-Pakistan border. These issues have led many would-be tourists to choose alternative destinations.
'The situation is dire," said Digvijay Singh Bisht, President of the Nainital Hotel Association. 'The cascading effect is visible across all sectors; hotels, restaurants, taxi services, shops, and boating activities are all facing financial hardship."
Ved Sah, Secretary of the Hotel Association, added that over 90% of hotel bookings have been cancelled in recent weeks, largely due to safety concerns and uncertainty.
Kamal Pandey, a local businessman, noted that his earnings have dropped to just 20% of what they were during the same period last year. Hotel owners in both Mallital and Tallital echo similar sentiments, with many struggling to pay staff salaries as rooms remain vacant.
Despite the current gloom, there remains a glimmer of hope. Some business owners report a slight uptick in tourist numbers in recent days. If the situation remains stable, they believe travellers may begin to return in the coming weeks. Nonetheless, the immediate future of Nainital's tourism sector hangs in the balance. Stakeholders are calling on the government for urgent intervention, requesting relief packages and concrete assurances of safety to help revive the once-thriving industry.
As one of India's most cherished hill stations battles this unprecedented crisis, the hope remains that the tranquil charm of Nainital will soon once again draw visitors from far and wide.
First Published:
May 20, 2025, 10:14 IST