After the division of the state in 2014, Vijayawada is being
centre of attraction for AP. Political and business activities reached to peak in
Vijayawada even before capital has announced in Amravati.
Because of all these, traffic in Gannavaram airport
increased drastically. CBN govt did some development activities and extend the
airport to the back side to cope up the traffic in the airport. Having Ashokgajapathy
Raju as Civil Aviation Minister in Modi cabinet was added more advantage for
the development of Airports in Andhra Pradesh. Tirupati Airport turns to be
International Airport where as Vizag, Rajahmundry and Vijayawada Airports have
developed. All these development activities in Vijayawada cause to increase Hotel
Occupancy rate. Though there was no 5 Star Hotels in the city, other hotels are
getting occupied quickly.
Now, Air Connectivity was slowly disconnected to AP. Private
Airlines have decided to cancel their services from Vijayawada and Vizag.
Services from Vizag to Bangalore, Kolkata, Mumbai, Kochi and Delhi are
discontinued by one of the Private Airlines. AP new Government has not showed
much interest to renew the services. Vizag to Colombo flight was stopped where
as Vijayawada to Singapore flight was stopped. 3 of the Airlines have stopped
early morning services from Hyderabad to Vijayawada and vice versa. Hotel
occupancy rate in Vijayawada have dropped from 90% to 30% in last 45 days. Occupancy
rate increased in Hotel Sector when there is any activity in any city. Currently,
we don’t see much business activity in AP new Capital Amravati. When there is
no activity that impact falls on tourism and travel industry.
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