20% surge for tourism in winter, room rates to cash in more revenues
With the increasing tourist traffic to Sri Lanka, hoteliers are optimistic of a 20 per cent increase in bookings for the next winter season.
“Winter looks good – for the whole island winter could bring in about a minimum of 20 per cent increase in traffic,” Hoteliers Association President M. Shanthikumar told the Business Times on Thursday.
He noted that with the expected increase in traffic the revenue is also likely to surge with the minimum room rates becoming effective from October 1.
“Revenue will be more than 25-30 per cent and operation cost will be low and as much as one says there will be a drop in tourism we do not agree,” Mr. Shanthikumar said.
He explained that there is no need for the traveller that can afford to pay US$100 to be charged only $30.
In fact he pointed out that this was queried by the Central Bank Governor as well during their meetings with him on the moratoriums. He had queried why the industry would want to sell at below the cost and when they do so it would not be possible to service the loans obtained.
The moratoriums on the tourism industry had ceased to be effective from December 2022, it was noted.
Meanwhile, with the increasing traffic there is also a large diaspora traffic flying in directly to Jaffna due to Hindu festivals.
Mr. Shanthikumar noted that the five star hotels in Jaffna are today charging higher rates than their counterparts in Colombo since there is less undercutting.
Moreover, he pointed out that rates can continue to be higher as most bookings are made directly.
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