Indian corporates opt for better markets, says SLAPCEO

Indian corporate travellers are unlikely to book Sri Lanka for their next corporate events due to the increase in the rates in Colombo that has left most travel agents to continue to focus on other destinations to generate a better income.

Although the main events may be there some of the smaller conferences like dealer events and other corporate events are not booking Sri Lanka, Sri Lanka Association of Professional Conference, Exhibition and Event Organisers (SLAPCEO) President Imran Hassan told the Business Times.

Most Indian corporate events are now being picked up in markets like Thailand, Vietnam, Dubai and now even Goa (in India). He noted that previously Indian corporate travellers opted to choose Sri Lanka compared to their own Goa but now that has reversed. In this respect the 600-800 pax are not coming and this has led to a significant drop in business events.

In addition to the imposition of the minimum room rate that has increased rates across all hotels in the city it was pointed out that the surge in rates further by the new VAT component that has increased by 3 per cent from the previous 15 per cent is also not helping the industry to move forward.

In this respect, Mr. Hassan pointed out that Sri Lanka is now becoming increasingly uncompetitive as this issue is already affecting the industry.

With the increase in rates that has led to reduced visitors, he pointed out that they are focusing more on their operations in the Maldives to generate increased revenues which is a sad situation.