NEW minimum hotel rates in Sri Lanka effective this month are seen to help boost tourism and raise the country’s profile after its decades-long civil war.
“Hotels have definitely benefited in the capital (Colombo) and the issues we had in the past (of undercutting, among others) are over,” said veteran hotelier Chandra Mohotti, who is currently general manager of the century-old landmark, Galle Face Hotel.
Rates have gone up to US$125 per room plus taxes from US$100 for the five-star category, according to Sri Lankan Tourism (SLT) officials, with a penalty of US$20 to be imposed on each bed sold below these rates.
Four-star rates have gone up to US$95 per room from US$85, three-star to US$75 from US$70, two-star to US$60 from US$55, and one-star to US$45 from US$40.
The rates will initially only apply to hotels in Colombo, which has more than 2,500 rooms. It will eventually be applied to other hotels in the country.
Hotels will undergo random audit to ensure they adhere to the guidelines.
Shanthi Kumar, president of the City Hotels Association, told local media that the new rates were needed due to an increase in demand for more rooms.
“At present, Sri Lanka offers the cheapest rates in the world, and therefore this increase will not affect the trade in any way. The increase in the rates is safe and was needed in order to prop up the industry,” he said earlier this month.
