Tourist hotels are reporting unprecedented summer business despite a slow international traffic squeezed by war and virus.

Jaypee Hotels, a Jaiprakash Gaur company, is expecting fill occupancy in its Mussoorie hotel in June. Company executives say the hotel has not seen such business in years.

Several other hotels in Uttaranchal and Himachal Pradesh also reported full occupancy till June 20.

It is not just the hill stations that are seeing a surge in tourist traffic. Jaypee Hotels' Agra property, too, has seen a rise in occupancy from about 35 per cent in 2002 to 45-48 per cent this year.

Executives at WelcomHeritage hotels said while last year's peak season weekends were always full, this year people were booking for all days of the week. "Even a destination like Mount Abu, which is a weak summer draw, has heavy bookings this year. People are even willing to go to jungle lodges this time," the executive said.

An East India Hotels spokes- person said there was a lot of interest in the company's hotels in the hills as well as in its resorts in Rajasthan. She, however, said since the holiday season had just begun, the actual rise in demand would be known later.

Federation of Hotels and Restaurant Association of India Secretary-General Shyam Suri said bookings this year were going to be significantly higher than the 50-60 per cent in 2002. The major beneficiaries would be the three-star hotels and resorts because the five-star hotels catered largely to the business traveller, he added.

Apart from the diversion of tourist traffic to local destinations because of the severe acute respiratory syndrome, the rationalisation of airline fares, reinstallation of the leave travel allowance and hectic conferencing have also contributed to the rise in business. Dealer junkets are also being restricted within the country.

Jaypee Hotels vice-president (marketing) Pradeep Kalra said the company was expecting a 25 per cent rise in conferences during April-June.