Hotels lobby for crackdown on unregistered listings on global booking platforms

• THASL calls on govt. to pass legislation allowing only SLTDA-registered accommodations be listed on global online travel agencies 
• Says it is a critical step to curb foreign currency leakage and level playing field for heavily taxed formal hotel sector

By Nishel Fernando 
The Tourist Hotels Association of Sri Lanka (THASL) has called on the government to introduce a simple legislative amendment mandating the global online travel agencies, including Booking.com, Agoda and Expedia, to exclusively list the accommodations registered with the Sri Lanka Tourism Development Authority (SLTDA). 
The association highlighted that this minor legal tweak is a critical step to curb foreign currency leakage and level the playing field for the heavily taxed formal hotel sector, which currently competes against an expanding and unregulated informal market.
During a recent press briefing in Colombo, the industry leaders emphasised that the survival of most modern accommodations relies heavily on these digital platforms for customer acquisition. By legally restricting the platform access to only the registered properties, the unregistered entities would be forced to either enter the formal economy by obtaining the necessary licences or cease operations.
To facilitate the technical and regulatory enforcement of this mandate, the association noted it is currently working in cooperation with the Digital Economy Ministry, to ensure these global digital platforms comply with the local tourism regulations. The industry representatives pointed out the severe commercial disparity between the registered hotels and unregistered properties. While the formal establishments are heavily regulated and contribute significantly to the state coffers, the informal sector largely bypasses these financial obligations. 
The stakeholders noted the heavy tax burden placed on the formal sector, explaining that out of every Rs.100 charged by a registered hotel, Rs.25 is directly remitted to the government in the form of various taxes and licence fees. 
Meanwhile, the unregistered entities utilise the global booking engines to secure international bookings and generate foreign exchange earnings that often bypass the formal banking system and national tax net.
Representing the association, Asoka Hettigoda stressed that a straightforward legislative amendment could automatically resolve this longstanding issue by cutting off the primary distribution channel for unregulated operators. 
“One important thing from our point of view, now all these hotels—most of them are operating through basically Booking.com, Agoda and all those kinds of platforms. So, what we are asking the regulators is, at least one is, we should pass legislation to say that Booking.com, Agoda, Expedia and all these booking engines should be marketed only to the tourist-registered property institutions,” Hettigoda stated.
Hettigoda emphasised that the primary objective of this regulatory push is to seamlessly halt the bleeding of foreign exchange from the national economy, without requiring complex enforcement mechanisms.
“What we are requesting the government authorities to do is that small amendment. One thing is, it will automatically—because if they can’t market in those platforms, they cannot exist going forward. I think that foreign currency leakage stopping is what we are hitting at this point of time,” he added.
Bringing all tourist accommodations under the regulatory umbrella of the tourism authority through this targeted digital regulation would not only broaden the government’s tax revenue base but also ensure a standardised service quality, security and safety for international travellers visiting Sri Lanka.