Dissent continues over Minimum Room Rate

SLAPCEP Vice President Janice Hakel Ranasinghe, ASMET President Rohan Abeywickrema, SLAITO President Nishad Wijetunga, SLAPCEO President Imran Hassan and Aitken Spence Travels Managing Director Nalin Jayasundera
PIC BY PRADEEP DILRUCKSHANA

• Some industry stakeholders express profound discontent, alleging favouritism towards certain hoteliers by implementing MRR
• Criticism directed at SLTDA for not considering all industry views
• Call to revoke MRR gazette to prevent harm to tourism sector
• MRR, which applies only to city hotels in Colombo, came into effect on October 1 
• Warn MRR could make Sri Lanka less price competitive in  tourism market

By Shabiya Ali Ahlam
The sharp division within Sri Lanka’s tourism industry on the implementation of the Minimum Room Rate (MRR) became even more apparent yesterday, as the key industry stakeholders voiced their profound discontent about the move, charging that it was implemented to cater to the “vested interests” of certain hoteliers. 
Holding a press conference in Colombo, yesterday, they slammed the Sri Lanka Tourism Development Authorities (SLTDA) for not taking into account their views and concerns before implementing the MRR. 
The industry associations that took part in the press conference were the Sri Lanka Inbound Tour Operators (SLAITO), Sri Lanka Association of Professional Conference, Exhibition and Event Organisers (SLAPCEO) and Association for Small and Medium Enterprises in Tourism (ASMET). 

They urged the authorities to revoke the gazette on the MRR at the earliest before it causes major harm to the country’s tourism sector. 
The MRR, which had the blessing of the Tourism Minister and some influential hoteliers, came into effect on October 1. 
The senior representatives of the three associations cautioned against the government intervention to artificially fix prices, primarily to satisfy a select group of hoteliers with “vested interests”. 

“This approach may lead to Sri Lanka becoming out-priced in comparison to competing tourist destinations offering similar attractions and experiences,” SLAITO President Nishad Wijetunga said. 
The representatives alleged that the Tourism Ministry was misled by certain hoteliers with properties in the immediate outskirts of Colombo to proceed with the MRR, so that they can benefit by increasing occupancy by offering lower rates. 
The MRR applies only to the city hotels located within the heart of Colombo. 

The representatives pointed out that Sri Lanka’s tourism landscape, specially in Colombo, lacks the necessary offerings to attract high-end tourists. Therefore, the mandatory imposition of the MRR will not benefit the industry in any significant way. 
“The MRR might benefit those who are lazy to improve the value of their product. It’s a way to make money without much effort. We have no issue with room rates being increased as long as it is demand-driven. It should be forced. This is not something the government should interfere,” Aitken Spence Travels Managing Director Nalin Jayasundera said. 
They also emphasised that elevating Sri Lanka to a luxury destination cannot be achieved solely by artificially increasing room rates. They underscored the urgent need for a diverse range of activities and events in cities like Colombo. 
They further said destination management companies (DMC) have indicated that Sri Lanka is losing its competitive edge to regional counterparts, even in the meetings, incentives, conferences and exhibitions (MICE) sector, due to more appealing rates and value-for-money offerings from these competitors.

“When selecting a travel destination, tourists typically do not consider the financial commitments of hoteliers, such as loans and moratoriums. Implementing the MRR risks making Sri Lanka less price competitive relative to other destinations. This is not the time for trial and error,” ASMET President Rohan Abeywickrema said.