Minimum room rate imposed on Colombo hotels removed

In a press release, Sri Lanka Tourism Development Authority (SLTDA) yesterday said the minimum room rate (MRR) imposed on city hotels in Colombo has been removed with immediate effect.

SLTDA said the decision was taken taking into account the severe hit on tourism industry in the aftermath of the Easter Sunday bombings.

SLTDA also said “it’s better for the market forces to decide the room rates” rather than them dictating terms due to prevailing situation.

The bombings which killed over 250 people and injured over 500 people saw the hotel occupancy rates plunging below 10 percent.

The minimum room rates were introduced in 2009 following lobbying by 4-star hoteliers, so that they can compete easily against 5-star rated hotels.

Meanwhile, SLTDA said they were hopeful of getting the travel advisories on Sri Lanka lifted in the next “couple of weeks”, as authorities have been working closely with many diplomatic missions since the incident.

Last week, China softened the travel ban imposed on Sri Lanka to “cautious when travelling.”