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12/08/2023
City hotels get lifeline with return of MRR regime from 1 October
The country’s crucial yet struggling city hotels will get a lifeline with the return of Minimum Room Rate (MRR) regime from 1 October 2023 a move which industry officials yesterday identified as positive but comes with strict penalties if found to be violating.
The announcement by officials comes amidst divisions within the tourism industry with a MRR championed by The Hotels Association of Sri Lanka (THASL) and the Colombo City Hotels Association (CCHA) but scorned by Sri Lanka Association of Inbound Tour Operators (SLAITO) and industry leaders individually giving mixed opinion on the merits and demerits.
However, Tourism Minister Harin Fernando told a media briefing yesterday that the end goal is to attract high-end tourists.
“International hotel brands coming into Sri Lanka will give a huge edge to the tourism industry. Sailing, yacht boarding, diving are signs of high end tourism. Our end goal is to attract Indian celebrities to fly in their private jets and enjoy vaccination in their yachts,” Fernando told the briefing flanked by heads of key State tourism agencies.
He also reiterated that hotels and resorts in Yala are earning a minimum $ 600-700 for bed and breakfast basis which shows the capacity to operate within that high-end room rates if there is a unique product to be offered.
Sri Lanka Tourism Development Authority Chairman Priantha Fernando said the legislation is currently undergoing review by the legal draftsman's office and is expected to be gazetted soon.
The city hotels operated under a MRR until the 2019 Easter Sunday terror attacks.
“To ensure proper oversight, a reputable audit firm will be appointed to monitor the implementation and progress of the MRR compliance,” Fernando said.
He emphasised the subtle yet powerful message conveyed by pricing, which significantly impacts perceptions of product and service quality. “The new regulation aims to uphold quality standards and enhance the overall tourism experience in the destination,” he added.
