A 20 percent hike in hotel room rates in Rajasthan will affect tourism in the state, say tour operators. Not really, argue hotel owners.

The tourism industry was anticipating a growth of over 30 percent in arrivals. Statistics reveal that every third foreign tourist coming to India visits Rajasthan.

But with the hike in hotel tariffs, the industry sees only a marginal rise in business.

The tourist season in the state started in September. But despite the onset of November, the arrivals have been far below expectations.

Said Nikhil Pandit, secretary of the Rajasthan Association of Tour Operators: "We had to cancel trips of two big groups as they objected to the increased tariffs.

"Most tourists are now reluctant to visit the state because on an average the tariffs have gone up by over 20 percent," said Navendu Goswami of Rajasthan Expedition.

"Many tourists are turning to other states as the Rajasthan package is proving them costly," Sanjay Kaushik of Rajputana Holiday Makers pointed out.

The hotel industry does not accept the argument.

"Some hotels have raised their tariffs and that is only because they have gone for refurbishment of their properties and have invested big sums of money. The rest have maintained the same tariffs. So I don't think business has been affected," said Ajay Agarwal, president of the Hotel and Restaurant Association of Rajasthan.

"On the contrary we have recorded room occupancy of over 85 percent during the past two months and there were crisis of accommodation at times."

The number of foreign tourists visiting the state during January-April stood at 456,000, up by 36 percent from the corresponding period last year.

"The growth in domestic tourist arrivals was almost 29 percent, with the total number of domestic visitors being 5.4 million," a tourism official said.

Known for its traditions, heritage, forts and palaces, Rajasthan registered a growth of 55 percent in the number of foreign tourists during 2004.