Hoteliers and travel agents are bracing for a major showdown when efforts to implement dollar transactions becomes effective from December 1. The Hoteliers Association of Sri Lanka (THASL) in a letter to the travel agents has stated that in future the latter would be compelled to transact with hotels using only US dollars and not [...]

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The Sundaytimes Sri Lanka

Hoteliers shake up travel agents for dollars

By Sunimalee Dias
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Hoteliers and travel agents are bracing for a major showdown when efforts to implement dollar transactions becomes effective from December 1.

The Hoteliers Association of Sri Lanka (THASL) in a letter to the travel agents has stated that in future the latter would be compelled to transact with hotels using only US dollars and not in rupees from the beginning of next month.

Travel industry sources said that this would prove detrimental to them as most of the smaller members of particularly the inbound operators would be compelled to open up foreign currency or dollar accounts. Sources from the Sri Lanka Association of Inbound Tour Operators said they were opposed to the move and considering legal action. Interestingly, some of the travel agents and hoteliers within the same organizations are at logger-heads over the recent developments since they belong to the different associations.

THASL previously stated in an interview with the Business Times that this proposal was very important at a time when the dollar was constantly fluctuating giving them leeway to obtain foreign dollar loans.

It would also prove to make gains for the industry in a bid to support massive investments for construction of hotels.




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