Hotel For Rs 1,000, Parking For Rs 60: Nainital Was A Budget Haven Just 50 Years Ago

Last Updated:July 12, 2025, 18:11 IST

Clean hotels in Nainital once cost Rs 1,000–Rs 1,500, but now standard rooms range from Rs 2,000 to Rs 5,000, and during peak season, prices often exceed Rs 5,000 per night

Nainital, one of Uttarakhand’s most popular tourist destinations, has seen a dramatic rise in prices over the past five decades. Once an affordable getaway in the 1970s and 80s, the hill town has now become increasingly expensive for sightseeing, accommodation, and even bringing a vehicle into the city.

The parking fees in Nainital have increased significantly. Where it once cost Rs 60, the fee has now surged to Rs 500. Similarly, the lake bridge fee, which was Rs 10 during the British era, has escalated to Rs 300.

In the past, clean hotels were available for Rs 1,000-Rs 1,500, but now the rent for a standard hotel ranges from Rs 2,000 to Rs 5,000 per night, and during peak season, prices can exceed Rs 5,000. It has become challenging to secure a room in some hotels without advance booking.

Ved Shah, Secretary of the Nainital Hotel Association, notes that inflation has risen nationwide, impacting Nainital as well. Hotel tariffs are set based on costs, with two types of tariffs: the published tariff seen online and elsewhere, and the actual realised tariff, which depends on demand and supply.

If tourist numbers increase, tariffs rise, and if they decrease, tariffs fall. Shah mentions that tourism has declined over the past five to six years, and there hasn’t been a significant increase in hotel tariffs.

Nainital-based businessman Tribhuvan Fartyal said rising inflation has impacted the hill town too. He shared that around 1917, a lake bridge fee of Rs 10 rupees per vehicle was introduced to control tourism. Today, this toll has increased to Rs 300, reflecting the widespread impact of inflation.

Dinesh Bhotia, a shopkeeper in Nainital’s Bhotia Market, shares that he has witnessed many changes since his childhood. He noted that food and hotel rates are currently soaring. Parking fees are at Rs 500, toll tax is Rs 300, and an additional Rs 100 is charged for the entry of outside bikes. These rising costs are a burden for everyone in Nainital.

Even the costs of electricity and water have increased, along with house taxes. Bhotia, who runs a clothing business, adds that while clothing prices in his shop have risen within a limited range, hotel, parking, and toll prices in Nainital have surged dramatically, potentially impacting tourism negatively in the future.

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Location :

Nainital, India, India

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