RTDC profitability grows 24%, questioning leasing out plans

Jaipur: At a time when the state govt is pushing to lease out the properties of the Rajasthan Tourism Development Corporation, the latest financial performance of the corporation tells a story of steady recovery and improving profitability.Up to January 2026, RTDC posted a total income of Rs 4,896.56 lakh, a sharp rise from Rs 3,962.21 lakh in the corresponding period of FY 2024–25. This translates into a year-on-year growth of nearly 23.6%, reflecting stronger occupancy and improved performance.
Hotel revenue alone climbed to Rs 1,467.67 lakh from Rs 1,202.60 lakh a year earlier, signalling the corporation's core business is making gains. Catering services also improved substantially from Rs 1,089.74 lakh in 2024–25 to Rs 2,484.75 lakh in the current financial year.Even more significant is the improvement in profitability. With total expenditure at Rs 4,095.77 lakh in the first 10 months of the current financial year, RTDC generated an operational surplus of Rs 800.79 lakh. In percentage terms, the operating margin improved to about 16.4%, up from roughly 13.5% in the same period last year, an expansion of nearly 3 percentage points.These figures assume importance against the backdrop of the state govt's intent to lease out several RTDC properties on the grounds that they are loss-making and a financial burden on the state.The data, however, presents a different reality. While certain individual units may face operational challenges, the corporation as a whole is generating a surplus and improving its margins. The narrative of systemic losses does not fully align with the overall financial performance.Employees of the corporation, who are opposed to privatisation, argue that rather than exiting operations through long-term leases, the govt could consider reinvesting in the properties.Many RTDC hotels occupy prime locations in heritage cities, wildlife circuits and pilgrimage destinations. Modernising rooms, upgrading amenities, enhancing digital booking systems and improving marketing outreach could significantly raise average room realisations and occupancy levels.In a recent meeting with senior officials of the tourism department, the Chief Secretary also emphasised enhancing the potential of the properties to make a profit, said sources in the department.With revenues nearing Rs 4,900 lakh in just 10 months and profitability increasing, the case can be made that strategic capital infusion, rather than leasing out, may unlock far greater long-term value for the state.