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Tuesday, 8 January 2002  
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Hotels freed from low-price trap

by Tharika Goonathilake

Colombo City Tourist Hoteliers yesterday agreed to a minimum room rate of US $ 75 for Meetings, Incentives, Conferences, Exhibitions (MICE).

The agreement, which comes into effect today was initiated by the Sri Lanka Convention Bureau, Sri Lanka Tourist Board together with Sri Lanka Association of Professional Conference and Exhibition Organizers (SLAPCEO). It was signed by the two associations under the patronage of Minister of Tourism Gamini Lokuge at the Lanka Oberoi yesterday.

Minister Lokuge said that this was a significant achievement which augured well for the tourism industry in the long term.

"At a time when the travel and tourism industry is facing low yields as a result of internal and external problems, it is a laudable that the industry has reached a consensus to work together to maintain standards and improve the quality of the service. The industry suffered similar set backs in 83 but was able to bounce back through resilience. We can do the same again," he said.

However, the minister warned that the fifteen signatories must honour the agreement in order to make it an effective tool in marketing Sri Lanka as a potential MICE destination.

"It is up to you to honour your pledge. We cannot police your activities. The Government recognises the crucial role the industry plays not only in promoting Sri Lanka as a travel destination but also in bringing in much needed foreign exchange to the country's coffers," Minister Lokuge said.

Sri Lanka Tourist Board Chairman Renton de Alwis said that the new agreement will help the hotel industry to get out of the low pricing trap and help launch Sri Lanka as a destination not only worth coming to but also pay for.

He said that Sri Lanka's destination status will have added value with higher prices and better yields which in turn could help channel much needed funds for further training and improving quality in the hotel sector.

CCTHA President Eraj Abeywardena said that Hoteliers have resolved to stand together to benefit from this agreement and called on all the signatories to honour their pledge and refrain from violating the pricing policy.

Sri Lankan Professional Conference and Exhibition organizers, President Dharni Soza said that the agreement will be valid for two years and will be reviewed every six months with a view to assessing its validity in keeping with market conditions.

Ministry Secretary Dr. P Ramanujan, Sri Lanka Convention Bureau Additional General Manager S. Gopinath also spoke.

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