The India Tourism Development Corporation (ITDC) has declared a dividend of 20% on paid up capital amounting to Rs. 13.50 crore for the year 2006-07. This is the fist dividend declared since 1998-99. At a function here today, Chairman and Managing Director, ITDC Shri Parvez Dewan presented a cheque of dividend to Tourism and Culture Minister Smt. Ambika Soni.

During 2006-07, ITDC made a profit of Rs. 105.18 crore before tax as against Rs. 51.57 crore during 2005-06 which represents a 104% increase in profits over previous year.

Out of Rs. 105.18 crore, Rs. 6.04 crore was spent on upgradation of hotel properties in addition to normal maintenance. Out of balance Rs. 18.84 crore was provided as liability on account of an arbitration award for 2001-04. Also, a liability of Rs. 7.89 crore was provided for employees’ dues for the earlier years, leaving a net profit (before tax) to Rs. 68.77 crore.

It will be recalled that ITDC had made a marginal profit of Rs. 2.86 crore (before tax) in the years 2003-04, after losses in the 4 preceding years.

HIGHLIGHTS of the performance of the company during 2007-08 are:

Off-season (April to September) profits for the Hotels Division rose by 3704%, i.e. from Rs. 44 lakh in 2005-06 to Rs. 16.74 crore in 2007-08.

HIGHLIGHTS of the performance of the company during 2006-07 were:

The Ashok Reservation & Marketing Services, i.e the event management division’s turnover increased by 400% over 2005-06 and profits by 2547% from a loss of Rs. 10 lakh to profit of Rs. 2.47 crore.

The Ashok Creative Division’s turnover increased by 2612% over 2005-06, and profit by 290% from loss of Rs. 97 lakh to profit of Rs. 1.85 crore.

The Ashok Institute of Hospitality & Tourism Management increased it’s turnover by 146% over 2005-06 and profits by 119% from Rs. 51.31 lakh to Rs. 1.13 crore.

During the year 2006-07, all the divisions of ITDC improved their profitability over the previous year except the Engineering Division. In the case of the Ashok International Trade Division (Duty Free Shops), ITDC’s presence has been reduced to only Goa with the privatization of Airports.

Road Map for Future Plans

ITDC has launched a major renovation and upgradation drive for all its hotel properties throughout the country. Work on the renovation of 40 rooms at the Brahmaputra Ashok, Guwahati has been completed. Work on a Wellness-cum-Convention Centre is to be completed in 2009. The front wing of Hotel Janpath, New Delhi has been fully renovated and the back wing and lobby are to be renovated this year. 59 Rooms of Hotel Ashok, New Delhi have been upgraded and another 182 rooms, the Convention Centre, the Lobby and some public areas are to be renovated and upgraded by 2010 at a cost of Rs.146 crores, half of which is in the form of grant from the Ministry of Tourism and the remaining Rs.73 crore from the ITDC’s own profits.

After the success of the Indo-African Summit held at Hotel Ashok earlier this year, in which 13 Presidents, Prime Ministers and Vice Presidents from African countries participated, the Ministry of External Affairs is likely to put up some of its visiting international guests at Hotel Jaipur Ashok, for which purpose 60 rooms are being upgraded.

Hotel Patliputra Ashok, Patna is ITDC’s best success story outside Delhi. One floor is being upgraded to 5-star standards and a Banquet Hall is being added. Similar improvements are being made at Hotel Kalinga Ashok, Bhubaneswar where one floor is being upgraded. ITDC’s Joint Ventures are all making profits. Additional rooms are being added to Hotel Donyi Polo, Itanagar and one floor of Hotel Ranchi Ashok is being upgraded.

At Hotel Pondicherry Ashok two convention rooms are almost ready and plans have been approved for 10 cottage rooms and a Wellness Centre which will include a Swimming Pool.