Hotel room occupancy levels plunge below 40% as coronavirus fears bite

• Island wide hotel room occupancy levels also estimated at 40% or below
• Hotels recorded around 70% occupancy in March during past few years

By Nishel Fernando
Sri Lanka’s hotel room occupancy levels have plunged below 40 percent amid the spread of coronavirus (COVID-19) in several key tourism markets of the country and global and local travel restrictions.

Speaking to Mirror Business, Colombo City Tourist Hotels Association (CCTHA) President and Vice President of Hotels Association of Sri Lanka (THASL) M. Shanthikumar said the current occupancy level at Colombo City hotels has fallen in the range of 35-40 percent.

THASL CEO Amal Goonetilleke revealed that occupancy level at Colombo City hotels have been averaging around 38 percent so far during the month with cancellations still coming in. Similarly, hoteliers estimate the island wide hotel room occupancy level at 40 percent or below.

“It’s difficult to confirm the exact numbers at the moment with cancellations coming in,” Goonetilleke stressed.

The island wide hotel room occupancy levels are drastically dropping, according to THASL President Sanath Ukwatte.

The hotels recorded an occupancy level of around 70 percent in March during past few years.

Shanthikumar noted that future bookings have also considerably slowed with the recent acceleration of coronavirus outbreak globally.

“Future bookings will drop further and further due to the coronavirus outbreak and travel restrictions. The absence of on arrival visa would also have some impact. Hence, the future is looking even bleak now,” he added.

The World Health Organization (WHO) this week declared COVID-19 a pandemic amid recent uptick in new cases and fatalities across Europe, United States and Asia, although infections in China have come down rapidly in recent weeks. Sri Lanka has so far reported three cases with two cases being reported within this week. 

Amidst recent developments, Shanthi Kumar noted that local tourists are also restricting their travel plans within the island, further deteriorating the already low hotel occupancy levels.

Following the Easter Sunday deadly attacks, the hoteliers lured local tourists with discounted rates to somewhat compensate the sharp drop in tourist arrivals. Goonetilleke stressed that the fake news circulating on social media remains a concern while noting that it could become detrimental to the industry and to the country.  Further, she emphasised that hoteliers have been taking precautionary measures to restrict the spread of coronavirus in the country since January.  Despite the global travel slowdown, she noted that tourists from less impacted countries such as UK, Russia and India continue to visit Sri Lanka.  However, if the current challenging situation persists, hoteliers cautioned that they would have to consider difficult decisions on an individual basis to survive.  

“Although, it’s very tough, the hotels will have to mange with whatever the business they get, though each hotel will make their own decisions in the near future,” Shanthi Kumar said.