Colombo hotels face a hit from minimum rates

The tourism industry is facing a drop in MICE travellers as most are feeling the pinch from the high rates charged following the imposition of the minimum room rates in Colombo.

Tour operators highlighted that in addition to the Israeli war situation that has cost the industry a surge in arrivals from a new market the minimum room rates have also pushed out travellers to Sri Lanka.

New bookings coming particularly from the Indian market are not being confirmed as a result of the increased rates with the imposition of the minimum rates in

Colombo hotels, Sri Lanka Association of Professional Conferences Exhibition and Event Organisers (SLAPCEO) President Imran Hassan told the Business Times.

He noted that Colombo hotels are losing business to hotels outside of the city due to the high rates imposed.

So far, the confirmed groups prior to the imposition of the minimum rates are being honoured so there are no cancellations, he said.

However, new bookings are hard to get and more so from the Indian market that does not like to be price regulated.

Mr. Hassan pointed out that at a time when the industry is just picking up, their growth is dented as a result of these minimum rates.

In the meantime, Sri Lanka Association of Inbound Tour Operators (SLAITO) President Nishard Wijetunga told the Business Times on Friday that their Letter of Demand sent to the Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando asking for a withdrawal of the gazette on the minimum rates, had been rejected.

A letter sent to Tourism Minister Harin Fernando too had not received any feedback requesting he use his powers to rescind the gazette that could be carried out within 14 days of it coming into effect.

The MICE market is coming down because with those prices they cannot promote the destination in overseas markets, former SLAITO President Mahen Kariyawasam said. As a result this has caused a drop in visitors to Colombo, it was noted.

Meanwhile new promotions scheduled to be held in crisis-hit Israel with a roadshow planned for December this year have been put on hold, Sri Lanka Tourism Promotion Bureau (SLTPB) Chairman Chalaka Gajabahu told the Business Times.

Special charter flights came to take back the Israeli tourists holidaying in Sri Lanka following the outbreak of the war, Mr. Gajabahu said.