Hotels hurled a double whammy
Hoteliers are facing a further blow to their earnings since the latest outbreak of COVID-19 as the only guests that patronized them, the Sri Lankans, are now steering clear of holiday travel.
With the outbreak of the coronavirus in Minuwangoda, the government had placed a number of clampdowns on social gatherings and restricting numbers that forced the closure of many events.
While some even cancelled their weddings others are however, going ahead, to the blessing of some hotels, since the auspicious times to perform these rituals cannot be forgone.
“All our hotels are suffering and whatever local business we used to get they (locals) have cancelled all stays due to the current scare – so we are once again badly hit,” Hotels Association of Sri Lanka President Sanath Ukwatte told the Business Times on Wednesday.
The only (local) business they had amounted to about 20 per cent of their pre-COVID earnings “and now even that is all gone,” he lamented.
Takeaway food delivery services were carried out by hotels in the city but not all hotels can carry these out and in the resorts it is clearly not possible, he noted.
Meanwhile, the industry is facing more problems as banks are refusing to go ahead with the loans to the leisure sector for the payment of wages, Mr. Ukwatte said adding that: “We request the government to support the wage support scheme.”
This had obtained Cabinet approval on June 10, but since then there has been no arrangements by banks to approve of such loans to the hotels. Jetwing Symphony Hotels Chairman Hiran Cooray said their group of hotels do not have any guests and people have cancelled bookings with only about 3-5 per cent occupancy on the weekends. Prior to the recent outbreak, hotels and resorts were happy with weekends getting packed with Sri Lankans.
Now even the guests that arrived during the weekdays like those staying over while travelling on official work or even the meetings have now dwindled to zero, Mr. Cooray explained. Previously they used to have about 15-20 per cent occupancy on weekdays.
Weddings are also restricted to the immediate family as a result it has taken a toll on the hotels, he noted.
The Jetwing Group which has given out six of its hotels for quarantine purposes is now having no stays as repatriation flights have stopped since the recent outbreak, he said.
However, hoteliers believe there is a social and psychological cost involved in this entire lockdown process as it is impacting on livelihoods immensely.
Connaissance De Ceylan Chairman Chandra Wickramasinghe said that resorts are facing postponements as people are asked not to travel and as a result business has come to a close and nothing coming into the hotels.
He also noted that they had obtained the first working capital loan but now they are yet to receive the second loan and even the loan for the payment of electricity bills is being worked out.
Industry officials blamed the medical fraternity for not taking into account any concern of the economic cost to the country as it is a disease that could be managed without imposing sudden lockdowns. “There should be some consideration about the economic cost without randomly locking down areas,” one official said.
But overall hoteliers are not looking at the winter season which in previous years was the most wonderful time of the year with hotels gearing up for the holiday season and the Christmas novelty.
This year is going to be dull with nothing on the cards as the latest outbreak has dampened spirits and scared off guests from year end gatherings!
NKar Travels Managing Director Nilmin Nanayakkara pointed out that under the circumstances “it’s a matter of trying to survive” and added that: “I only hope all my colleagues will survive.”
He noted that at present maintaining less numbers in the country is most important and preventing the spread of the coronavirus is crucial.
City Hotels Association President M. Shanthikumar said that city hotels remained opened but were operating on a small scale with few patronizing the hotels.
He said that there has been a drastic drop in the number of visitors to the bars and restaurants of the hotels with all functions postponed.