Once acclaimed for its pine-whipped pure air and sylvan environs, Kasauli and its precincts are gradually fading under a layer of toxic haze, dust, and concrete owing to unbridled environmental degradation.The Kasauli Planning Area, covering 1,911.39 hectares and spread across 35 villages, has seen rampant growth of tourism units which have occupied every conceivable space on the hills, valleys and across the rivulets.Estimates indicate that roughly 250 hotels, alongside an equal number of bed-and-breakfast units and homestays, now operate across vital arteries like the Kimmughat-Garkhal, Sanawar-Kasauli, Dharampur-Kasauli, Garkhal-Chabbal-Jagjitnagar, and Dharampur-Kanda roads, as well as in rural hamlets such as Kasauli Gaon, Dochi, Nandoh, and Gara.Sharp decline in hospitality revenueOnce considered a booming enterprise, Kasauli’s hospitality sector now suffers from a steep decline in average room revenue. From being ranked among the highest in Himachal Pradesh, returns have taken a sharp dip due to market saturation.Average room revenue, which stood at Rs 7,000 to Rs 8,000 per night until a few years back, has dropped by nearly 20 per cent and faces further decline. Most hotels operate at a mere 35 per cent average annual occupancy, while larger properties peak at 60 per cent.With the main tourist season lasting only 120 days a year, covering year-round overhead expenses is a major challenge. Due to limited local attractions, tourists rarely stay beyond a day or two, severely impacting commercial viability.Consequently, many properties, including under-construction projects like an 80-room hotel on the Kanda-Dharampur and Kimmughat-Chakki Mor roads, are currently up for resale.“One sees the mushrooming of hotels at every nook and corner,” says a local hotelier. This saturation makes it difficult for operators to break even after servicing their loans.Industry concerns, proposed solutionsAccording to Rocky Chimni, vice-president of the Kasauli Residents and Hoteliers Association, the region offers little beyond cool climes and panoramic views, making it hard to retain visitors. The tourism body has repeatedly petitioned successive governments to introduce annual attractions, such as summer festivals akin to Shimla’s, to draw crowds for extended periods.Association adviser Winny Chaddha says, “There is a whopping 20 per cent increase in the number of hotels every month. This is adversely affecting the revenue of existing tourism units while impinging on the civic amenities as most of the hotels lack parking.”The association wants a moratorium on new projects, putting the fresh approvals on hold for a few years to allow existing properties to stabilise. It has also sought viability studies to evaluate whether the region can sustain further commercialisation.Another demand is ensuring an infrastructure overhaul, including revising the Town and Country Planning building norms, mandating adequate parking, and improving traffic management at the congested Garkhal junction where five roads converge.Unregistered unitsEstablished hoteliers also face stiff competition from a proliferation of homestays and bed-and-breakfast units. Traditional hotels, they point out, are pressured to invest heavily in recreational amenities like spas, swimming pools, and gaming zones, whereas smaller homestays operate with fewer overheads. The rise of unregistered properties operating via online booking portals with flexible tariffs has further encroached on the established clientele.While the Tourism Department initiated a campaign to identify illicit operations — detecting roughly 100 unregistered units across Solan and Sirmaur districts — enforcement remains sluggish due to a severe shortage of staff, says District Tourism Development Officer Padma Chodon.