Stakeholders upbeat on tourism, but urge swift actions on challenges

Sri Lanka tourism stakeholders yesterday expressed confidence in the continuation of the current positive trend witnessed provided that there are no hiccups. 
However, representatives stressed the need for  authorities to acknowledge and iron out the prevailing challenges so that the industry can reach its aspired targets.

Speaking to Mirror Business, The Hotels Association of Sri Lanka (THASL) said that occupancy in hotels across the country is at a much higher rate when compared with last year.

THASL President M. Shanthikumar noted that at present the occupancy is about 65 percent, and is likely remain the same if the current operative conditions continue.
“January to March was a stellar. And we should be able to keep up with the same momentum or make improvements,” he said.

Reflecting similar sentiments, Sri Lanka Association of Inbound Tour Operators (SLAITO) President Nishard Wijetunge, said bookings have been good so far and on paper the bookings for summer and beyond are also looking good.   “Gut feeling is that if the country situation remains as it is now, without any upsets, industry will do well. We have a few challenges that we foresee,” he said.

The two key challenges are the Minimum Room Rate (MRR) and the vehicle fleet.
According to SLAITO, the current MRR imposed in Colombo that has prevented new bookings to Colombo will continue to be a stumbling block. Wijetunge shared that if not removed in the near future, the Colombo based establishments in particular will see lesser bookings.

“It is the old contracts/bookings that contributed to the occupancy numbers in Colombo over winter,” he said.
At present, two separate cases have been filed at the Supreme Court, challenging the MRR. One, by a Colombo city hotel and the other, jointly by three industry associations, SLAITIO, Association of Small and Medium Enterprises in Tourism (ASMET) and Sri Lanka Association of Professional Conference, Exhibition and Event Organisers (SLAPCEO). 

The other challenge is the aged vehicle fleet that is now around 15 years old. The import restrictions placed on vehicle imports have made it difficult for tourism sector stakeholders to have access to newer, high performing, models.