Hospitality sector on the brink of collapse: THASL

Sri Lanka’s pandemic-hit hospitality sector is on the verge of collapse with revenue flows drying up due to the absence of tourists, The Hotels Association of Sri Lanka (THSASL) said yesterday while renewing its call for further government assistance.

“We are indebted with no revenue. We have very limited funds to pay our workers or to maintain our buildings. Our pleas to the government for a wage support scheme are yet to materialise,” said THASL in a media statement yesterday.

With the escalated pandemic situation at home and some of the key source markets, THASL pointed out that the local tourism sector needs a ‘substantial solution’ that follows best practices adopted elsewhere to address the present crisis.  

To aid the struggling industry during the on going health and economic crisis, THASL shared a seven-point request that could offer the sector some breathing space.

To prevent the collapse, the THASL asked for the government to implement the Cabinet-approved wage support scheme, extend debt moratorium till December 2022, introduce an effective debt restructuring programme, waive all penalties on non-payment of utility bills, abolish 1 percent revenue charge on hotels by Municipalities, waive off Tourism Development Levy payments from 2019 until end 2022, and prioritize vaccinating hotel workers and tourist service providers.
(See the full THASL statement on Page 17)