Low demand from upmarket travellers this winter
There has been a drop in arrivals for the four and five star category hotels as a result of increased rates and a decline in Russian charter operations, industry sources said.
At present with the winter season on, the industry has seen a drop in demand for this category of hotels as a result of the increased prices compared to other markets, they point out.
Upmarket travellers preferred to book rooms in lower star category hotels or would chose to travel to other destinations like Vietnam and Thailand where rates have been drastically dropped. As a result an overwhelming demand is currently seen in these destinations compared to Sri Lanka.
Tourist Hotels Association of Sri Lanka President M. Shanthikumar said while they cannot state a clear reason for the drop in demand for travellers to these two category of hotels the industry is currently witnessing a decline in Russian charter operations to Sri Lanka as well.
There has been a 10 per cent drop in demand from travellers to the four and five star category hotels and they are hoping to see how things will turn out by the first week of January, Mr. Shanthikumar said.
He noted that although they expect an increase in arrivals it is uncertain since authorities will be imposing a US$60 airport tax per passenger at the Mahinda Rajapaksa International Airport (MRIA) at Mattala from January 1, 2025. Charter operations mainly operated to this airport due to the absence of an airport tax previously that led to this airport being attractive for these flights.
Mr. Shanthikumar said they have requested the authorities to remove this new airport tax in a bid to remain competitive and not to lose traffic during this key winter season. However, no decision has yet been announced on removing the said tax.
Most Russian charters that operate to Mattala have already signed contracts but they are likely to move out if these new charges are imposed.
Russia has become the second highest market for tourism with the number of arrivals increasing to 197,498 in 2023 from 91,272 in 2022. India is currently the top market for tourist arrivals at 302,844 for the year 2023.
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