2 August 2023 08:11 am
By Shabiya Ali Ahlam
The re-introduction of the Minimum Room Rates (MRR) which was to come into effect yesterday (August 1) will be delayed as industry stakeholders have yet to reach a consensus, Mirror Business learns.
Tourism Minister’s decision to bring back the MRR was met with harsh criticism by some sections of the tourism sector, mainly the Destination Management Companies (DMCs) and certain hotels as they believe the increase in prices would drive away international visitors.
Having shared concerns with the Tourism Minister Harin Fernando in early July, industry stakeholders were given time to reach an agreement before the MRR is gazzated.
However, no parties have put forward any proposal as yet, Sri Lanka Tourism Development Authority (SLTDA) said.
“They (hoteliers and the DMCs) were given time to discuss among themselves and come to a settlement. But that has not happened as yet. We have been holding the MRR from being gazetted till we receive their proposals,” SLTDA Chairman Priantha Fernando said.
However, the authorities will be compelled to intervene if no response is received in the coming days, he added.
Fernando went on to assert that the re-introduction of the MRR is definite, but what might change is the proposed rate.
The previously proposed US$ 130 ++ per night on BB (Bed & Breakfast) for a five-star hotel will likely be reduced. A possible reduction will also follow for other star-rating hotels.
The MRR was in place across Sri Lanka from 2010 to 2019 and was disbanded when the tourism sector started to feel the impacts stemming from the Easter Sunday attacks.
The decision to reintroduce the MRR was made in response to hotels offering extremely lower prices to attract visitors, leading to a considerable decline in room rates, even at five-star hotels.
President Ranil Wickremesinghe has repeatedly asserted the need for Sri Lanka to focus on high-end tourism and to ensure it is not promoted as a ‘cheap’ destination.
As the island nation badly needs foreign exchange to progress from its current economic status, Wickremesinghe has stressed that the local tourism sector must look at ways and means to uplift its products and service quality to increase the spending of international visitors.