Minimum Room Rate to end by May 31

4 May 2024 06:05 am - 13 - {{hitsCtrl.values.hits}}

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Harin Fernando

By Shabiya Ali Ahlam and Nishel Fernando

The highly debated Minimum Room Rate (MRR), which has the tourism industry divided, would be removed at the end of this month, Tourism Minister Harin Fernando confirmed.

Fernando yesterday put to rest the concerns and confusions on how long the MRR will continue to be rolled out, stating that it is time for the measure to be scrapped.

“There is good news. We have taken a decision and by May 31, the MRR will be removed,” Fernando told journalists yesterday while addressing a press conference regarding the controversies surrounding the
e-visa scheme.

“We wanted to have it till March 31. Unfortunately, the SLAITO (the Sri Lanka Association of Inbound Tour Operators) and THASL (The Hotels Association of Sri Lanka) went to court with it,” he said.
In September 2023, the Sri Lanka Tourism Development Authority (SLTDA) reintroduced the MRR for the Colombo city hotels, after considering the hoteliers’ requests.

The gazetted rates are US $ 100 for five-star hotels, US $ 75 for four-star hotels, US $ 50 for three-star hotels, US $ 35 for two-star hotels and US $ 20 for one-star hotels.

While stressing that it is time for market forces to run, Fernando said the tolling out of the MRR was well thought out to assist the industry.

He noted that with tourism improving, there is not much need for the MRR.

“Even if we put the MRR, Shangri-La and all sell for much higher rates, where they go about US $ 180-200. With ITC coming, they have lifted the benchmark,” said Fernando.

“So, it is up to the hotels also to do their own marketing and they also have to go out there, do their marketing, get their promotions done,” added Fernando.

SLTDA Chairman Priantha Fernando shared that the objective with the MRR is achieved, with the city hotels seeing occupancy increased to 70 percent over the last six months.

“The income generated increased by 33 percent within the city of Colombo. Now it’s up to the hoteliers to continue this, based on the demand,” he said.

Meanwhile, in a separate conference held by the stakeholders of One Industry One Voice, the members highlighted the negative impacts brought about by the MRR.

According to Golden Isle Travel Managing Director Paddy Paul, the move was a massive hit for MICE tourism, as the Colombo hotels have become uncompetitive to the regional peers.

“The DMCs are unable to negotiate with the city hotels to offer discounts to paxs. In particular, the Indian MICE tourists are choosing Thailand, the UAE and Saudi Arabia over Colombo,” he said.

SLAITO Member Bobby Jordan Hansen alleged that the MRR was granted on the request of “a small number of hoteliers”.

“All we ask from the government is to facilitate tourism in a way we can go and market and convince the tour operators. Sri Lanka is a fabulous destination; just bring your clients here. That’s the message we have to give,” she said.

Comments - 13

Steve Saturday, 04 May 2024 08:28 AM

This is what happens when people with no knowledge take over such institutions. Market forces should determine rates and not arbitrarily set by a Ministry.

Sokrates Saturday, 04 May 2024 09:30 AM

As always, it was a mistake for the government to interfere in the free competition of a free market. But there is still a lot to delete, for example maximum sales prices, alcohol prices, alcohol licenses, vehicle import licenses, fixed prices and much more.

Gabriella Saturday, 04 May 2024 05:08 PM

Just observe the way the smug know it all smart arse conducts himself. Do you think he would ever be receptive to astute counselling ? Keep voting for these jackasses !

Treat Tourist Like “Cash Cows” Saturday, 04 May 2024 10:56 AM

For now, get the tourist arrival volumes up by all means. Reduce prices wherever possible so long reasonable operations cost and some profits are made. SL Needs return tourism and best way is the word of mouth from those who have visited SL to their friends and family back home. Make it convenient to get complimentary 20 to 30 days visa’s and no hassling the tourist at the airport by officials and touts. Place voice recording CCTV’s to deter anyone to be unscrupulous with tourists. Treat All tourist like “cash cows”

Ranjith Saturday, 04 May 2024 05:56 PM

Covid 19 is as usual tourists will come and go in late 1970 tourists occupancy rate was over 70% right through out the year, we don't minister to unnecessarily interfere tourists industry will thrive hard work put by hotel owners, tour operators, tourists guides so on and so forth, government has to play a supportive role improving infrastructure in tourists hotspots

Harin don't get too greedy Saturday, 04 May 2024 07:15 PM

Now that the fee for a visa is proved to be too high in this country the minister seems to be fcussed on lifing the minimum room rate by the 31st of May to make up for the loss.. I have already planned to visit Sri Lanka in December and have tentatively booked my hotel rooms etc. and if I find the charges are more than what was quoted initially wen I booked i may have to cancel my trip to Sri Lanka. While Sri Lanka is striving to get 2.5 million tourists by the end of this year the city where I live attracts approx. 12 million tourists annually and is known as a tourists paradise.

wsw Sunday, 05 May 2024 08:34 AM

When illiterates run a nation, they make blunder after blunder, sadly the people who voted them will eventfully suffer.

wsw Sunday, 05 May 2024 12:00 PM

These jackasses disguised as politicians, believe they are above the law and beyond accountability, when it comes to sensible decision making. Subsequent to such embarrassing gaffs, one would expect a reasonable person to accept their mistake as part of their social responsibility. Instead, these clowns arrogantly attempt to justify and brush aside any concern, regardless of its legitimacy.

Sirima Palankanda Sunday, 05 May 2024 04:17 PM

Hora Harin is still surviving under the pant of the refused RW!! Find a place to hide - may be under Myna?

ANNECUNT Sunday, 05 May 2024 04:50 PM

IF YOU WANTS TOURISTS TO COME GIVE THEM RESPECT TREAT THEM WELL ABOLISH VISA FEE , FREE TO MOVE AROUND THE COUNTRY AT WILL, SRI-LANKANS ARE FRIENDLY PEOPLE WITH SMILING FACES ALWAYS HAPPY TO HELP

ALL WIND AND NO POOOOOOO Sunday, 05 May 2024 05:23 PM

ONE CAN TAKE ONE LOOK AT HIS FACE IN THIS PHOTO AND FORM AN OPINION OF THIS SCUMBAGS CHARACTER. CAN ANYONE PLEASE ENLIGHTEN ME ON WHAT HIS QUALIFICATIONS ARE TO BECOME MINISTER OF TOURISM!!

ANNECUNT Sunday, 05 May 2024 05:36 PM

i think we have a decent minister for the job, just need to give him support and encouragement

ANNECUNT Monday, 06 May 2024 01:20 AM

GOOD WORK HARIN HOPE WE SUCKSEED

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Minimum Room Rate to end by May 31

Comments - 13

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