PESHAWAR: Adviser to the Chief Minister Khyber Pakhtunkhwa on Information and Public Relations, Shafi Jan, said that certain elements are spreading negative propaganda regarding the Swat Serena hotel lease despite the government’s clear policy framework and legal process.
Shafi Jan said that the Khyber Pakhtunkhwa government remains fully committed to the transparent, honest and efficient management of valuable public assets and the promotion of tourism, terming reports about the Swat Serena Hotel as misleading and contrary to facts.
He described the hotel as one of the province’s prime tourism assets, spread over approximately 44.6 kanals in Swat district. He explained that the property was leased in April 1985 to Tourism Promotion Services (Private) Limited (Serena Hotel) for a period of 30 years at an annual rent of Rs500,000.
The lease expired on June 30, 2015. Upon completion of the lease term, disagreements arose over the determination of rent in line with prevailing market rates, leading to legal proceedings.
According to the adviser, the hotel’s rent was reassessed at different stages, with the annual rent fixed at Rs8.86 million in 2014 and later revised to Rs13.27 million in 2022. In October 2021, the provincial cabinet approved a temporary retrospective extension of the lease, subject to the determination of a fair market rate.
Subsequently, a multi-sectoral committee headed by the Director General of the Culture and Tourism Authority (CTA) conducted a detailed review and fixed the annual market rent at Rs104.69 million to align with current market realities.
However, after reviewing legal and policy requirements, it was decided that further extension of the lease was not permissible under existing provincial policy.
Shafi Jan said the government plans to lease the property through a transparent and competitive open auction. Third-party assessments indicate that the hotel’s monthly market value is significantly higher, which could generate substantial revenue for the province.
He reiterated that the provincial government is taking effective measures to promote tourism, improve facilities for tourists, and further strengthen infrastructure in tourist destinations, stressing that tourism is a sector of vital importance for Khyber Pakhtunkhwa’s economy.
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