Rooms in Colombo now cheaper
View(s):Sri Lanka’s commercial capital Colombo is likely to have its room rates drop by about 20 per cent this year in the wake of the minimum prices set by authorities not being implemented this year.
Sri Lanka’s Hoteliers Association President Sanath Ukwatte said that the gazette pertaining to the imposition of minimum room rates in Colombo hotels expired in March this year.
He noted that currently the hotel prices were heading towards a reduction in prices of rooms by about 20 per cent and the only advantage that hoteliers gain is that they could compete with the home stays and hostels.
Prices have been dropping since April, and the industry is worried it could affect staff service charge and altogether the total earnings of employees could be impacted, Mr. Ukwatte said.
“This is a dangerous sign, so I hope the hoteliers will not drop (prices) continuously to the earlier level of $50,” he said.
Mr. Ukwatte explained that this regulation was imposed at a time when the prices of rooms in Colombo were dropping drastically to as low as US$50 at one time.
Undercutting and a lack of cooperation among hoteliers has given rise to this issue and it is also evident that this is clearly due to the fact that everyone is fighting to get any traveller into their hotel at any cost.
This is a clear indication of the lack of tourists visiting the country and especially since Colombo city hotels are mostly patronized by businessmen and conference delegates with only about 20 per cent staying for leisure.
(SD)