Industry stakeholders up in arms against moves to scrap ‘Happy Hour’

• Says an ‘absurd’ move to discourage already ailing tourism industry  
• Hoteliers say this rule will clearly discourage businesses
• Violations of the directive could result in fines of Rs. 50,000

By Kurulu Koojana Kariyakarawana   

Industry stakeholders including hoteliers, tourism  authorities and even law enforcement agencies have shown their utter  dismay over an abrupt decision taken by the National Authority on  Alcohol and Tobacco (NATA) to scrap the ‘Happy Hour’ in hotels, which  was termed as an ‘absurd’ move to discourage already ailing tourism  sector and consumers.  

A letter circulating on social media addressed to the  Chairman of a leading five-star hotel in Colombo by the NATA states that the latter is issuing a directive to all hotels to refrain  from granting any discounts on the purchase of alcohol products during  their ‘Happy Hour’.  

The letter dated on May 28th and undersigned by the  Chairman NATA Dr. Alan Ludowyke had directed the hoteliers to comply  with the NATA Act No.27 of 2006 (as amended). The letter has been copied  to Commissioner General of Excise M. J. Gunasiri and a senior Excise  official who is the Board Director to NATA from the Excise Department.  

The letter had stated that the NATA had received several  complaints regarding hotels with liquor licences offering discounts on  the purchase of alcohol products, such as ‘Happy Hour’ promotions.  
The communiqué quoted “The National Authority hereby  informs you that this practice constitutes a clear violation of Section  37(2) of the NATA Act No.27 of 2006. Consequently the Board of Directors  of NATA has decided to issue a directive to all hotels to refrain from  granting any discounts on the purchase of alcoholic products.”  
It further warned violation of the aforementioned section  is liable to a fine of Rs.50,000 and each Director of the offending  establishment will be deemed guilty of the offence.  

When contacted a legal officer of the NATA told the Daily  Mirror that they had received certain complaints regarding these hotels  selling alcoholic beverages on discounted rates during the Happy Hour,  which is illegal.  
The officer quoted Section 37(2) of the NATA Act as, “A  person shall not offer any prize, gift, cash rebate, discount or the  right to participate in any contest, lottery or game to the purchaser of  a tobacco product or alcohol product in consideration of the purchase  of that product or to any person in consideration of the furnishing of  evidence of such purchase.  

Asked whether this abrupt move would disturb business and  discourage tourism industry beneficiaries, the official said what  mattered most to them was to enforce the law in the country. Saying it  was a decision taken by the Board of Directors of NATA, which has  the sole authority to enforce the law, the official further questioned  whether the tourists would visit Sri Lanka to see its beautiful nature  and rich culture rather than merely to drink alcohol.   
He said the decision has been taken following a research  over the matter and the letter has been sent as ‘Show Cause’ to the  hoteliers.   

Responding to this statement, senior managers of two  leading star hotels in Colombo told the Daily Mirror that this rule will  clearly discourage their businesses as well as the clients during a  difficult period when the tourism sector is regaining its grip after  three years.  
On the account of anonymity, they explained how they carry  out their sales with a number of overheads to keep the business running.  

When contacted, Chairman Sri Lanka Tourism Development  Authority (SLTDA) Priyantha Fernando termed this as an ‘absurd and  unwise’ move to discourage the tourism industry and that they would report  the matter to the Presidential Secretariat and the subject Ministry by  Monday.  

“On one hand we are doing our level best to uplift the  tourism industry of this country and these kinds of counterproductive  moves will undoubtedly discourage the hoteliers and restaurateurs,”  Fernando said.  
When inquired about the practicality of this decision as  the law enforcement agency that would be responsible for implementing  this law, Commissioner General of Excise M. J. Gunasiri told the Daily  Mirror that it could be an ‘unwise’ move at a time like this.  

“The stipulated law is mentioned in the NATA Act, but they  will have this issue raised in the next NATA Board Meeting through the  Excise Board Member concerning the practicality of implementing it  suddenly,” Gunasiri said.  

The Excise Chief however denied any knowledge of the sudden necessity to enforce this law by the NATA.   
Attempts made to contact Chairman NATA Dr. Alan Ludowyke for comment were not successful.