Why Shimla saw the lowest hotel occupancy in 40 years on New Year's eve

Despite the anticipation of weekend snow and the Chief Minister's instructions to treat revelers leniently on New Year, Shimla struggled to attract tourists, recording over 60 percent hotel occupancy until Sunday evening—its lowest in the past 40 years, Press Trust of India reported, citing hoteliers. In contrast, the previous year saw Shimla with an occupancy rate exceeding 80 percent on New Year's Eve.

While the Mall Road and The Ridge in the city center were lively with tourists enjoying the winter carnival's lights and cultural events, this influx did not translate into increased hotel room occupancy, according to M K Seth, president of the Shimla Hotel and Tourism Stakeholders Association. Seth noted that the current 60 percent occupancy is the lowest in four decades, even compared to the New Year during the Covid-19 pandemic.

Seth revealed that vehicles without prior bookings were initially diverted by the police at Shoghi, not realizing that a majority of New Year tourists are spontaneous, impacting the rush to the main city. The matter was resolved after discussions with the Superintendent of Police.


Chief Minister Sukhvinder Singh Sukhu had directed to follow the hospitality slogan 'Atithi Devo Bhava' and ensure smooth traffic flow with adequate arrangements in all districts. The state authorities had also allowed food joints and pan shops to remain open 24x7.

Seth also said that touts also guided tourists to unregistered accommodations, affecting the sales of registered hotels, home stays, and other establishments.

Tourists preferring isolated accommodations in the suburbs and those planning private parties beyond the city further contributed to the trend.

Tourism stakeholders attributed adverse publicity on social media and electronic channels regarding traffic jams to diverting tourists to other destinations. Videos of stranded vehicles due to traffic jam had also impacted room occupancy in Shimla and other parts of Himachal.