Minimum rates in Colombo hotels should be lifted - analyst

A leading hospitality real estate analyst said today that the minimum rates implemented in Colombo’s city hotels needs to be discontinued.
The minimum rates is a hamper on the competition in the global market, JLL Hotels and Hospitality Managing Director Mandeep Lamba said at the launch of the company’s report on the hospitality sector in Sri Lanka on Wednesday at the JAIC Hilton in Colombo.
He noted that there are times when the price is higher than the competition around and the minimum pricing can be a barrier.
“We think that the minimum room rate was essential when the market opened up. But today the minimum rate no longer helps the market,” Mr. Lamba explained.
The report released has made a number of key findings and it was pointed out that the laws need to remain consistent to build confidence among investors; ensure further development of the road, rail, hotel and other support tourists infrastructure particularly in the east coast and other emerging regions to improve connectivity; engage in destination market and focus on alternative tourism; establish and develop tourism circuits; and improve on skilled employees for the industry. (Sunimalee)