Reply To:
Name - Reply Comment
Last Updated : 2024-05-19 23:42:00
11 August 2023 12:00 am - 14 - {{hitsCtrl.values.hits}}
From left: Sri Lanka Conventions Bureau Chairman Thisum Jayasuriya, Sri Lanka Tourism Promotions Bureau (SLTPB) Chairman Chalaka Gajabahu, Tourism Ministry Secretary Buwaneka Herath, Tourism Minister Harin Fernando, Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando, and Sri Lanka Institute of Tourism and Hotel Management Chairman Shirantha Peiris
Pic by Pradeep Pathirana
By Shabiya Ali Ahlam
Sri Lanka’s hotel sector will no longer be able to slash prices as they see fit to lure foreign tourists because the hotly contested Minimum Room Rate (MRR) will come into effect from October 1, 2023.
Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando said a decision has been made to re-introduce the MRR, as the current rates charged by hotels, specially the five-stars, are unreasonable and undermine the overall perception of the local tourism sector.
“At present some five-star hotels are charging as low as US$ 65. Where in the world will you find such low rates? And what do you expect other suppliers of accommodation to do?” Fernando told a press conference held in Colombo, yesterday.
“The price conveys a message as well, about the quality and standards. We are positioned on the global tourism map based on the pricing as well. In that sense, we have decided to go ahead and re-introduce the minimum room rates,” he added.
However, unlike the initial proposal, the finalised MRR rates have been revised downwards.
Accordingly, the MRR approved by SLTDA for five-stars is US$ 100++, four-stars US$ 75 ++ and three-stars US$ 50 ++. Provisions have been made for MICE travel.
Previously, the suggested MRR was US$ 130++ (five-stars), US$ 100++ (four-stars) and US$ 80++ (three-stars).
The new MRR, which is currently under the review of the Legal Draftsman, will soon be officially published through
gazette notification.
Accommodation providers who fail to comply with the MRR will face substantial fines, potential license revocation, and a considerable renewal fee of Rs. 5 million for five-star establishments.
The MRR is also imposed with the aim of boosting tourist expenditure. The move will allow hotels to improve the overall quality of the product, Fernando said.
He cautioned that Sri Lanka cannot “jump the gun” and look to attract high-end tourists without having the right tourism product. He pointed out that it will lead towards damaging the country’s reputation as a tourism destination in the long-run.
Fernando highlighted the importance of raising the average daily expenditure of a tourist from the current US$ 180 to at least US$ 300.
Global marketing blitz to go ahead as planned despite tender controversy
The Ministry of Tourism yesterday confirmed that investigations are underway into the tender irregularities pertaining to the global marketing campaign tender, but assured it would not delay the launch of the 360-degree communications effort.
Acknowledging it as a serious allegation, Tourism Minister Harin Fernando however said the issues regarding tenders do not fall under his direct purview and the responsibilities of the same lies with Tourism Ministry Secretary Buwaneka Herath.
While noting that a specific date cannot be shared as to when the investigation will come to a close, Fernando said it depends on the inquiry.
“If very serious, we might even have to hand over the investigation to the CID. I personally, as a minister, do not get involved in these (procurement) matters. This comes under the Ministry Secretary,”
Fernando stressed.
Tourism Ministry Secretary Buwaneka Herath however responded stating that no comments can be made on the matter as investigations are still ongoing.
Nonetheless, a document shared among media personnel at the presser said after preliminary inquiries, the Sri Lanka Tourism Promotions Bureau (SLTPB) officials, who handled the procurement process were temporarily suspended from their duties.
Minister Fernando asserted that despite the hiccup, the marketing blitz will be launched as planned.
The campaign will be launched on August 19 by President Ranil Wickremesinghe, and the thematic campaign will kick off in October as planned, he said.
Following the detection of irregularities, the SLTPB on August 3 re-advertised the tender for the selection of a public relations agency to execute the PR activation for the communication campaign.
The deadline for submission is August 25, and bids would be open immediately after the closing time.
The purpose of the integrated global marketing campaign is to change the negative perception about Sri Lanka which was created during the period of the financial crisis in 2022, the
advertisement read.
The maximum total contract value for the project for a period of one year will be Rs.450 million.
Gee Friday, 11 August 2023 03:10 PM
A Sri Lankan 5 star hotel is only quality of other country 3 star hotel though
KD Friday, 11 August 2023 03:20 PM
Colombo hotels have been over priced for years. Finally they are seeing the real value of their services and the owners dont like it so colluding to introduce a minimum price. This is illegal.
Same product higher price will only deter vistors Friday, 11 August 2023 03:23 PM
Sri Lanka is all about over protection and then catastrophic collapses of industry and economy. Blocking free market practices always brings about inefficiency and when there is downturn the pain will be felt ever harder here compared to nations which don't have inefficient restrictions even on hotel room pricing. Also any good-will Sri Lanka has will only deteriorate when tourists smell the trap of forced up higher pricing.
Gunadasa Friday, 11 August 2023 03:28 PM
Foolish act by the government as some tourists will now consider if it is worth to visit Sri Lanka with relatively high hotel rates. Most of the western tourists can enter Singapore, Malaysia, Thailand etc visa free, while enter to Sri Lanka they have to pay $50 each.
Maldives and Vietnam here we come Friday, 11 August 2023 03:42 PM
It might be cheaper to holiday in Vietnam. Get serious, you cannot afford to jack up the price as people have other options.
Kees Berkhout Friday, 11 August 2023 03:49 PM
Have they forgotten again to make the prices for local people and foreigners the same.
N V Jen Friday, 11 August 2023 04:04 PM
Minimum Room Rates stipulated may be okay during peak months. But hotels should be allowed to have the flexibility to reduce rates during off peak time so that many will be lured to book.
Wiraj Friday, 11 August 2023 04:06 PM
@ GEE, Sri Lankan 5 star hotels are equally good like that those in most countries, and far better than those in South Asian Region FYI.
German Tourist Friday, 11 August 2023 07:49 PM
Better more interesting safer places than Sri Lanka to visit and spend our money. Quite frankly Sri Lanka is a waste of time.
noname Saturday, 12 August 2023 04:57 AM
What a stupid absurd decision! Prices should be decided by market value. Of course room rate for a 5 star hotel in Colombo will be less than that for a Travelodge in London or a motel in Las Vegas! So they would rather cut staff and keep most of the rooms empty than price them at a lower rate than the competition?
Nevil Fernando Saturday, 12 August 2023 07:36 AM
3 star hotels in western world is equivalent to 5 star in Sri Lanka. Tell me why I should pay $130 to $ 170 for a Sri Lankan so called 5 star hotel. This stupid idea will kill hotel industry. Most of the tourists coming to SL stay in boarding houses, and 2 star lodgings. They are not spending much money in SL
MWAI Fernando Saturday, 12 August 2023 08:24 AM
Please let the hotel managements decide on the room prices. They know how to go with the International market and the demands. All these 4,5 star Managers are much more educated in their subject than the Minister and they know what to do to attract foreigners . The Minister and Co. must do something to assist them by disciplining the bus drivers , prohibiting our politicians from going to hotels and behave like thugs, and organizing some kind of relief from higher electricity and water bills. The Minister is representing the Government so speak to your colleagues and demand assistance from them to solve these problems.
Diana Saturday, 12 August 2023 11:35 AM
There seem to be too many Institutions to promote Tourism in Sri Lanka. SL Tourism Promotion Bureau, SL Tourism Development Authority amongst other related Institutions. Are these necessary, or, are they to provide Positions and Jobs to favourites ? A good part of the earnings will be unnecessarily expended !
Commis Saturday, 12 August 2023 11:52 AM
Nothing happens in this country without any attempt at fraud or corruption by the Politicians or Officials. Good that Harin is firm.
Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.
Reply To:
Name - Reply Comment
The state-run loss-making State Mortgage & Investment Bank (SMIB) has reveale
US authorities are currently reviewing the manifest of every cargo aboard MV
On March 26, a couple arriving from Thailand was arrested with 88 live animal
According to villagers from Naula-Moragolla out of 105 families 80 can afford
17 May 2024 - 0 - 130
