Electricity tariff hike shatters recovery hopes of tourism sector

The government continues to make tall claims on the importance of the tourism sector to revive the economy, but the reality is they have no understanding whatsoever as their actions are harming the hard-hit industry, The Hotels Association of Sri Lanka (THASL) said.

 THASL President M. Shanthikumar, speaking on behalf of industry stakeholders said it is disappointing that the government doesn’t care to acknowledge the concerns raised by the sector regarding the hike in electricity tariffs and its impact. 

“Only last week we made a representation to the PUCSL on the concerns with the hike in power charges. Despite us having spoken at length on the issues and pointing out it is unfair to be placed in the super tariff category, to our shock, no change has been made,” said Shanthikumar.

Tourist arrivals
He stressed that while the hoteliers understand the need for increasing tariffs, they are fully against the decision to place them in the highest tariff category. This issue remains to be addressed.

The hotels sector has seen its operational costs shoot up by about 400 percent since the economic crisis. According to the THASL chief, no profits are made by the properties due to escalating expenses.
 When questioned if the burden will be passed on to consumers, Shanthikumar said the hoteliers won’t be able to since customers are already asking for discounts.

He shared that the electricity bill will increase by over 30 percent on average for the sector with the new tariff hike that came into effect from yesterday.

He stressed that while the hoteliers understand the need for increasing tariffs, they are fully against the decision to place them in the highest tariff category. This issue remains to be addressed. The hotels sector has seen its operational costs shoot up by about 400 percent since the economic crisis. According to the THASL chief, no profits are made by the properties due to escalating expenses.  When questioned if the burden will be passed on to consumers, Shanthikumar said the hoteliers won’t be able to since customers are already asking for discounts. He shared that the electricity bill will increase by over 30 percent on average for the sector with the new tariff hike that came into effect from yesterday.