Minimum room rate has negative impact on local tourism: CHSGA member

• By Yohan Perera

The minimum room rate introduced for city hotels by the government could have a negative effect on tourism, an industrialist said.
Member of Ceylon Hotel Schools Graduates Association Chandana Amaradasa said the minimum room rate introduced for Colombo City hotels recently is to be extended to hotels across the country. 
“Minimum room rate will result in local hotels losing their competitive edge. Whatever business that is coming to Colombo will go to countries such as Thailand and Malaysia as price factor matters,” he said. He said countries such as Malaysia and Thailand offer a cheaper rate.

“The tourism sector supply chain, which is massive, is also going to be affected.” he said, while highlighting that the Indian market has begun to run away.
“Among other issues is the lack of skilled persons to work in the tourism industry and lack of vehicles to cater to tourists. You need a good transport system to cater to 10,000 to 12,000 daily arrivals. There is a mafia of taxi operators,” he stressed.

“Sri Lanka should also improve its airport capacity and should capitalise on the demand,” he said.
Referring to the debt issue faced by the tourist sector players, he said the authorities should look at the lending systems followed by other countries and change those procedures.
Responding to the issue of tourists getting involved in business in Sri Lanka Amaradasa was frank and declared that no tourist should be allowed to do so.