Mangaluru: The Karnataka State Tourism Development Corporation (KSTDC) is preparing to inaugurate its first-ever resort in coastal Karnataka, marking a significant expansion of its hospitality footprint. The new property, named Mayura Phalguni River Resort, has been developed within the scenic premises of Pilikula Nisargadhama in Mangaluru and is expected to open to the public soon.

First KSTDC-operated property in the coastal belt

Despite coastal Karnataka attracting lakhs of tourists annually, especially to destinations such as Mangaluru, Udupi and Karavali beaches, KSTDC has so far had no directly operated property in the region. Previous government-owned facilities — two in Malpe and one in Mangaluru — were handed over to private operators under the renovate-operate-manage-transfer (ROMT) model.

“This resort will be the first in the coastal belt to be operated and managed entirely by KSTDC,” said Pushpalatha H, general manager (admin and hotels), KSTDC. The land belongs to the Pilikula Developmental Authority (PDA), which transferred the space for redevelopment.

Built on the site of a former JLR property

The location previously housed a resort run by Jungle Lodges and Resorts (JLR). However, the facility was shut down after suffering losses. KSTDC officials said that JLR’s model — heavily dependent on wildlife-based tourism — did not translate well to the Pilikula environment.

“One of the reasons JLR did not succeed is that they could not offer jungle safaris, which was their USP. Although Pilikula has a zoo, tourists expect to see animals in the wild. However, visitors will not have the same expectations from us,” said a KSTDC source. The decision to take over the space in 2023 followed a detailed study of various hospitality models suitable for Pilikula’s family-centric, nature-oriented setting.

Features of Mayura Phalguni River Resort

The resort will feature eight rooms, including deluxe rooms and suites, along with cottages designed in the traditional ‘thotti mane’ (courtyard house) architectural style. A spa — designed to resemble a traditional therapy centre — will also be part of the facility and will be the first of its kind at any KSTDC property.

With Pilikula already known for its zoo, heritage village, lake activities, science centre and botanical garden, KSTDC aims to position the resort as a relaxed getaway for families, nature enthusiasts and visitors seeking peaceful riverfront accommodation.

Existing challenges in KSTDC operations

KSTDC currently manages 28 properties, including 22 hotels under the Mayura brand. However, several have struggled with occupancy and reputation issues. Officials acknowledge that average occupancy in recent years has remained below 50%, except in high-demand destinations such as Nandi Hills, Mysuru, Ooty, Madikeri, Hampi and Badami. These properties typically achieve 60% occupancy during weekdays and up to 85–90% during weekends or peak tourism months.

Customers have frequently complained about infrastructure gaps, lack of maintenance and inconsistent service quality. Bhagwat Rajput, who stayed at Mayura Royal Heritage Ooty earlier this year, shared his concerns: “We went to the property on a family trip, and there were frequent power interruptions without back-up. There was no water in toilets and no intercom facility.”

KSTDC promises renewed focus on quality

In response to mounting feedback, KSTDC has begun taking corrective steps. Pushpalatha said that a digital marketing agency has been hired to continuously track customer reviews and highlight concerns in real time. “We are using this feedback to improve our services,” she said, noting that efforts are underway to modernise infrastructure, improve maintenance standards and enhance customer experience across all properties.

With the opening of Mayura Phalguni River Resort, KSTDC is hopeful of establishing a strong presence in coastal Karnataka and tapping into the region’s growing tourist footfall. The corporation believes that the strategic location, combined with Pilikula’s established attractions, will help the property perform better than past attempts.

Conclusion

The upcoming Mayura Phalguni River Resort signals a fresh chapter for KSTDC’s expansion in the coastal tourism sector. As the corporation works to improve quality standards across its network, the success of this resort may determine future investments in the region. Visitors to Mangaluru can soon look forward to a government-managed, riverfront stay within one of the city’s most beloved eco-tourism centres.