Industry stakeholders up in arms against moves to scrap ‘Happy Hour’

Industry stakeholders including hoteliers, tourism authorities and even law enforcement agencies have shown their utter dismay over an abrupt decision taken by the National Authority on Alcohol and Tobacco (NATA) to scrap the ‘Happy Hour’ in hotels, which was termed as an ‘absurd’ move to discourage already ailing tourism sector and consumers.

A letter circulating on social media addressed to the Chairman of a leading five-star hotel in Colombo by the NATA states that the latter is issuing a directive to all hotels to refrain from granting any discounts on the purchase of alcohol products during their ‘Happy Hour’.

The letter dated on May 28th and undersigned by the Chairman NATA Dr. Alan Ludowyke had directed the hoteliers to comply with the NATA Act No.27 of 2006 (as amended). The letter has been copied to Commissioner General of Excise M. J. Gunasiri and a senior Excise official who is the Board Director to NATA from the Excise Department.

The letter had stated that the NATA had received several complaints regarding hotels with liquor licences offering discounts on the purchase of alcohol products, such as ‘Happy Hour’ promotions.

The communiqué quoted “The National Authority hereby informs you that this practice constitutes a clear violation of Section 37(2) of the NATA Act No.27 of 2006. Consequently the Board of Directors of NATA has decided to issue a directive to all hotels to refrain from granting any discounts on the purchase of alcoholic products.”

It further warned violation of the aforementioned section is liable to a fine of Rs.50,000 and each Director of the offending establishment will be deemed guilty of the offence.

When contacted a legal officer of the NATA told the Daily Mirror that they had received certain complaints regarding these hotels selling alcoholic beverages on discounted rates during the Happy Hour, which is illegal.

The officer quoted Section 37(2) of the NATA Act as, “A person shall not offer any prize, gift, cash rebate, discount or the right to participate in any contest, lottery or game to the purchaser of a tobacco product or alcohol product in consideration of the purchase of that product or to any person in consideration of the furnishing of evidence of such purchase.

Asked whether this abrupt move would disturb business and discourage tourism industry beneficiaries, the official said what mattered most to them was to enforce the law in the country. Saying it was a decision taken by the Board of Directors of NATA, which has the sole authority to enforce the law, the official further questioned whether the tourists would visit Sri Lanka to see its beautiful nature and rich culture rather than merely to drink alcohol.

He said the decision has been taken following a research over the matter and the letter has been sent as 'Show Cause' to the hoteliers.

Responding to this statement, senior managers of two leading star hotels in Colombo told the Daily Mirror that this rule will clearly discourage their businesses as well as the clients during a difficult period when the tourism sector is regaining its grip after three years.

On the account of anonymity, they explained how they carry out their sales with a number of overheads to keep the business running.

When contacted, Chairman Sri Lanka Tourism Development Authority (SLTDA) Priyantha Fernando termed this as an ‘absurd and unwise’ move to discourage the tourism industry and that they would report the matter to the Presidential Secretariat and the subject Ministry by Monday.

“On one hand we are doing our level best to uplift the tourism industry of this country and these kinds of counterproductive moves will undoubtedly discourage the hoteliers and restaurateurs,” Fernando said.

When inquired about the practicality of this decision as the law enforcement agency that would be responsible for implementing this law, Commissioner General of Excise M. J. Gunasiri told the Daily Mirror that it could be an ‘unwise’ move at a time like this.

“The stipulated law is mentioned in the NATA Act, but they will have this issue raised in the next NATA Board Meeting through the Excise Board Member concerning the practicality of implementing it suddenly,” Gunasiri said.

The Excise Chief however denied any knowledge of the sudden necessity to enforce this law by the NATA.

Attempts made to contact Chairman NATA Dr. Alan Ludowyke for comment were not successful.