A major controversy has erupted in Shimla as the state government moves forward with plans to hand over the historic and prestigious Peterhoff Hotel to private operators. The move has drawn sharp criticism from tourism corporation employees as well as political opponents, who argue that this heritage property, which has historically generated solid revenue, should remain under public management rather than being transferred to private entities.
Employee Union Demands Reconsideration
The Himachal Tourism Corporation Employees Union has formally urged the government to reverse its decision to lease out the property. Raj Kumar, general secretary of the union, pointed out that Peterhoff has traditionally stood as one of the corporation's most lucrative revenue-generating assets. The union expressed deep concern over the steps being taken toward privatization following a state cabinet meeting held on January 19 of this year. Representatives emphasized that nearly 70 to 80 percent of the hotel can be fully restored and equipped with modern amenities. Rather than handing it over to private players, the union advocates for the reconstruction of damaged sections and the phased renovation of surviving structures, insisting that the Himachal Tourism Corporation should continue running its operations independently.
Political Opposition Raises Questions
The controversy has also taken a political turn, with the Bharatiya Janata Party criticizing the alleged move. Randhir Sharma, the state media in-charge for the BJP, issued a statement questioning the reported decision to halt bookings at the property after November 25. He stated that Peterhoff is an invaluable public asset of Himachal Pradesh and demanded that the administration explain why a functioning, historically significant property is being considered for transfer to the private sector.
A Rich Historical Legacy
Situated amidst the scenic hills of Shimla, the Peterhoff property boasts a fascinating and extensive history. Originally known as Meghdoot, the foundation of the building was laid in 1863 when Shimla served as the summer capital during the British Raj. Initially functioning as the Viceregal Lodge rather than a hotel, the venue witnessed major historical events. Following India's independence, the building housed the Punjab High Court, and notably, the trial of Nathu Ram Godse for the assassination of Mahatma Gandhi was conducted here between 1948 and 1949. Later, the structure served as the official residence of the state governor. Tragedy struck in January 1981 when a massive fire gutted the wooden heritage building. It was subsequently reconstructed in 1991 and converted into a heritage hotel, welcoming guests ever since.
Financial Pressures Facing the Tourism Corporation
The privatization push comes against the backdrop of mounting financial pressures within the state's tourism sector. The Himachal Pradesh Tourism Development Corporation currently operates a network of 55 hotels, restaurants, and cafes across the state, out of which 35 units are running at a loss. The corporation's total accumulated losses have crossed the 120 crore rupee mark. In an effort to restructure these operations, the government has expressed intentions to hand over 14 of its hotels to private entities, drawing intense scrutiny from stakeholders who fear the loss of public heritage.
