Falling occupancy despite Perahera

Hotels in Kandy have been experiencing a slump in spite of the Esala Perahera season and Sri Lanka staying off the world headlines for a few months. Hoteliers in the hill capital blamed the prevalent condition in the country as the reason behind the drop. Most hotels that The Kandy Times Business spoke to said that occupancy levels were low compared to the same period in the previous year.

A spokesperson for Hotel Suisse said that the occupancy this year, at 46% was less than that of last year, which was around 60%. Hotel Hilltop reported occupancy of 53% - 54% against 80% - 90% last year. According to the spokesperson from Hotel Hilltop, the two and three star hotels did not do all that well this season.

General Manager of the Earl’s Regency Thusith Samaraweera however, said that August was very good with occupancy around 90% while occupancy was at 100% during the 10 days of the Perahera. There was also a marked increase in the number of tourists from the Middle East he said, pointing out that it is probably the school holidays and the climatic conditions of the region (Middle East) that send them this way. Although tourists from that region did visit Sri Lanka earlier, their numbers have grown this month, he said.

Queen’s Hotel also experienced a drop in their number of guests, said a spokesperson, describing this year as not so great. The first three days of the Kumbal Perahera showed the highest numbers in terms of occupancy and there were equal amounts of locals and foreign tourists, he said, going on to explain that the amount of foreign tourists were less this year than in previous years.

Meanwhile the four-day gem, jewellery and handicraft exhibition in Kandy organised to coincide with the Esala Perahera was a disappointment with hardly any foreign buyers or curious tourists. Sales if any were confined to local sales and that too in the gem and jewellery section but not in the handicraft section.

Industry sources said the biggest obstacle was the heavy security cordon by the Police for the Perahera and the location of the exhibition at Queen's Hotel which is the centre of the High Security Zone for the Perahera. There were just a few local buyers. The exhibition was opened by the Chairman of the National Handicrafts Association, M.G. Tillekeratne on a low profile.

There were gem dealers from the south with most exhibitors from Kandy but they were unhappy with the timing of the exhibition. Both organisers -the Gem Authority and the Handicrafts Association didnt realised the security measures in place for the Perahera would hamper buyers, local or otherwise to even visit, exhibitors said. The event was also not properly advertised, another reason for the poor sales.