Rapid growth in industry with peace:

Tourist industry will benefit by increased room rates

Charumini DE SILVA

The increase of city hotel room rates would benefit the hotel industry and the entire tourism industry according to a leading hotel industrialist.

Hotel Developers Lanka PLC Chairman, Navaz Rajabdeen told Daily News Business, “We are pleased that the decision to increase the rates was approved by the Tourist Board and accepted by most of the leading hotels. When the rates were reduced, the service charges were also reduced. Therefore, the present increase would benefit the management and the staff of the hotel trade”.

He said there should be legislation to regulate the quality and service in tourist hotels since a considerable increase in the number of tourist arrivals was expected in the coming season and thereafter.

There has been a tremendous increase in the number of tourist arrivals especially from the Middle East, Europe and Asia too. The tourism industry has shown rapid growth with the dawn of peace.

Tourist Hotels Association of Sri Lanka, President, Srilal Mitthapala said this would ensure that the hoteliers move forward with a proper price structure in the short-term until the market stabilizes.

With the increased rates of hotel rooms in the city of Colombo there will be a better platform to start up their business again where the number of tourist arrivals had also increased with the dawn of peace.

There will be long-term potential when the number of tourist arrivals increases in the next two to three years while the tourism industry will expand further. City Hotels President, Shanthi Kumar said the average occupancy rates of star class tourist hotels in Colombo were US$ 50 - 60, but the hotels will now increase these rates to US$ 100 - 120. This will include all hotels in Colombo, Dehiwela and Mount Lavinia.

Sri Lanka’s star class hotels will increase their rates from November 1 for occupancy and services to be on par with international tourist destinations so that Sri Lanka will not be classified as a cheap destination.