Hotels hungry for cash flow

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Mr. Shanthikumar noted that “If we get the loan for wages within the next three months then we can survive otherwise we will have to lay off more of the permanent staff.”

Currently only about 25-30 per cent of the normal patrons is visiting hotels even for food and beverages, it was noted.

Galle Face Hotel Vice President Anura Lokuhetty told the Business Times that “we are doing quite well with food and beverage and banquet” adding that they are maintaining the regulations and look forward to people coming out. However, he pointed out “we are not out of the woods as the rates are insufficient to keep the hotel infrastructure running.”

As a result of credit card discounts hotels remain attractive for local clients to patronise them. “I don’t think hotels can reduce much – right now it’s a matter of survival since this time it is something we don’t know yet when it will turn around.”

Mr. Lokuhetty noted that there is only about 5 per cent occupancy on slashed rates mostly for Sri Lankans. Hayleys Leisure Managing Director Rohan Kaar said all their resorts are depending on domestic tourists on weekends although “it’s not really a game changer because of the slashed rates.” It hardly covers the costs, he said.

In the city however, the Kingsbury is purely dependant on F and B and weddings and hardly any accommodation, he said and in this respect they are trying to reduce losses but rooms have not been shut down. About two to three rooms per night would be occupied, he said.

They are also engaged in more restaurant business and have established a delivery app to send food that has helped generate more business in addition to a laundry pickup and delivery service as well, Mr. Kaar said. “Light at the end of the tunnel seems far far away,” he noted. (SD)