Hotelier says minimum meal rates imposed by govt. could hurt tourism industry

• By Yohan Perera  

A local tourism industrialist stated that the government’s imposition of minimum meal rates for Sri Lankan hotels could be unrealistic and potentially has adverse effects on the tourism industry. 

Chandana Amaradasa, a hotel owner with a background in tourism management, expressed the opinion that tourists may be discouraged from visiting Sri Lanka and inbound tour operators might be hesitant to bring in tourists, if the government intervenes in setting meal and room rates for hotels. 

As per the gazette notification issued on September 11, 2023, the stipulated rate for breakfast at a five-star hotel is US $ 10 while it ranges from US $ 9 to US $ 5, respectively for four-star hotels to one-star hotel. 

The meal rates for lunch ranges from US $ 7 to US $ 15. The rates for dinner are from US $ 9 to US $ 17. 
“The rates could increase with the demand and it could increase further by the end of the year,” Amaradasa said. 

He claimed that the rates are lower in other competing countries. 

“Besides, no other government in the world decides on meal rates,” he said. 
“Around 70 percent of tourism business is brought in by the inbound tour operators. They would be reluctant to bring in tourists with the decision by the government to stipulate minimum rates for meals,” he added. 

He said the connected industries such as food and beverage suppliers and airlines would also be affected by this move. 

Some foreign operators, including those in India, had warned that they would consider pulling out of the Sri Lankan market, if the government fails to reverse the situation.