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| Thursday, 11 December 2003 |
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CHC to open Pilgrims' Rest in Nepal, New Delhi : Hotels Corp nets Rs. 6m profit in nine months By Shirajiv Sirimane The Ceylon Hotels Corporation (CHC) for the first time has been able to make a profit of Rs. six million for the first nine months of this year. According to the Secretary to the Ministry of Tourism P. Ramunajam, the corporation was operating at a loss over the past few years. " The total loss for last year was Rs. 13 million," he said. The Chairman attributed this to bad management and excess staff. The CHC head office at Colombo 4, was overstaffed and the CHC paid Rs. 19 million to offer a Voluntary Retirement Scheme (VRS) for 51 employees in the head office. "With new marketing strategies and less payments for employees CHC is now making profits." He said that the Bank of Ceylon, (36%) Galle Face Hotel (25%) and the public are the main shareholders of the institution. Since the institution was not making profits a dividend could not be paid to its shareholders. "We will start paying dividends soon." According to the Chairman of the CHC Bodhi Ranasinghe the CHC has invested Rs. 35 million on infrastructure development and upgrading most of their properties last year. He said that revenue within the company was utilised for this purpose. He said that the CHC is catering mainly to local tourists and only around 25% of foreigners are patronising them. "However, the number of foreign tourists is increasing." Properties in Belihul Oya, Polonnaruwa, Ella, Tisssa and Kitulgala are especially in demand among foreigners. The method of direct marketing by way of their web site handles these foreign tourist arrivals. With the peace initiative domestic tourism too picked up and has grown at 15% since then. The CHC which commenced operations 37 years ago, will give priority for local tourists in the future as well. The CHC which functions under the Tourist Board hopes to invest on a property in Jaffna. "We are looking at a 10 room hotel and negotiations in this regard have been completed." The CHC hopes to invest RS. 8 million for this property. Meanwhile, for the first time the CHC is hoping to operate a Pilgrims' Rest in Nepal. According to Senior Manager Operations Ranjith Balsuriya a CHC delegation will leave for Nepal next week. "We are looking at a 100 room Pilgrims Rest to cater to locals who visit Nepal." In addition the CHC will also explore the possibility of acquiring a 40-room property in New Delhi. He said that the initiative in this regard had been taken on a directive from the Ministry of Buddha Sasana. |
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