Hoteliers have been engaged in refurbishments estimated to top US$25 million this year indicating private sector confidence in tourist arrivals into Sri Lanka.
Islandwide refurbishments have been carried out at an estimated US$20-25 million, Sri Lanka Tourist Hotels Association President Anura Lokuhetty told the Business Times on Wednesday.
Terming this to be “substantial investment” by the private sector, he noted that this clearly indicates a show of confidence by the industry in tourist arrivals.
In the last one year alone, the number of both large and small hotels that have undergone refurbishments stands at 10-12, Mr. Lokuhetty said.
In addition, hoteliers this year have engaged in refurbishments with the provision of additional facilities with more restaurants, bars and other room facilities.
Compared to refurbishments carried out in previous years it is a notable change, he said adding that this is because today hoteliers are taking into account the need to provide increased facilities to guests.
Previously, hoteliers were engaged in “cosmetic changes,” Mr. Lokuhetty explained noting that while this was carried out with the intention of surviving in the industry and at the time they would also provide only the minimum facilities.
However, this notable change is evident in that hoteliers have “really upgraded”, he said.
But this change has also contributed to an increase in rates, which Mr. Lokuhetty explained was due to the availability of a limited number of rooms in a country where other costs are higher.
In this respect, he noted it is unfair to accuse hoteliers of overpricing as they have to work with the market forces.
However, others in the industry believe this overpricing is not a good move stating that although trends indicate a good season, refurbishments is no reason to price the product high. “We must strategically price ourselves,” Sri Lanka Inbound Tour Operators Association President Nilmin Nanayakkara told the Business Times.
He explained that if for instance, at the high price no quality transportation is provided then this would give rise to a number of issues to creep in.
The responsibility lay with the industry to ensure that pricing is carried out ‘strategically’, he said.
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