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Last Updated : 2024-05-01 06:56:00
By Nishel Fernando
Jetwing Hotels Chief Hiran Cooray defended the Minimum Room Rates (MRR) as a necessary market push under the current environment for Colombo City hotels to return to profitability while increasing earning capacity for
their employees.
“You try to market a hotel and see, it’s not easy. People don’t have the confidence, and when there is fear, you don’t necessarily go out and sell at a higher price. That’s why it’s necessary for someone to come and push it up. Finally, hotels are making money, do you want to stop that? ” Cooray questioned.
He pointed out that MRR which came into effect from 1 October last year has not only supported hotels to return to profitability, but also their employees to increase their income in service charges, averaging up to around Rs.70,000-80,000 per month.
In making the case for continuation of MRR, Cooray stressed that MRR provides hoteliers and travel agents with much needed confidence to price room rates accordingly, while simultaneously elevating service standards.
“President says that he wants rates to be US$ 250, it will take some time. But when hoteliers and travel agents get the confidence, it can be then pushed up,” he said.
He also viewed MRR as a ‘market push’ instead of an intervention.
“As a Sri Lankan, you want more or less money to come into the country? It’s simple as that,” he added.
Meanwhile, Cooray shared that the industry expects a ‘good’ summer to maintain the current growth momentum.
“We are heading into May and June, which is slightly on the lower side, but overall, we expect a good summer as well,” he said.
Mahasona Friday, 05 April 2024 01:06 PM
Why don't we have a MRR for Negombo hotels? Mr. Cooray is cleverly sidelining Colombo hotels on the tourist map while leveraging advantages for his 5 hotels in Negombo. He and Harin are detrimentally impacting the business of attracting tourists to Sri Lanka from various Asian countries for their ill intent.
CNU Saturday, 06 April 2024 04:58 AM
Yes, Mr Cooray. Hurrry, to push up the rates. Can you also please push up the quality of service and the food quality you serve. Stop peddling nasty dried out buffets at exorbitant prices with ill trained staff picking up guests ‘ plates before one has finished one’s meal. This is what I experienced during my recent visit to SL. Also get the Tourist Board to stop just counting the heads of so called tourists but also check on the money they spend in SL I understand that some Russian ‘ tourists ‘ over stay there visa conditions, leave the hotels/ guest houses and just live on raw Karola. Come on Mr Cooray don’t cause SL to be a slave to so called tourism to pack your pockets Sri Lankans deserve better !!
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