Sri Lankan government temporarily lifts minimum room rates in Colombo to boost off-season tourist arrivals
Sri Lanka’s Tourism Development Minister John Amaratunge has reportedly said that the government has decided to temporarily lift the minimum prices on Colombo hotel rooms in a bid to boost off-season tourist arrivals for two months.
Accordingly, Sri Lanka is offering a Colombo City 3-night package for US$ 99 per person in 3-star hotels, while under price controls a double room has to be sold at US$ 75 per night from September to November.
Reports state that the price controls had helped 3-star hotels sell a room at the rates comparable to superior 4 and 5 star hotels in some East Asian capitals.
A gazette notice prescribing minimum rates lapsed in March 2018, but Minister Amaratunga was quoted as saying in the media that he was using ministerial powers to enforce the price floors.
Amaratunga had said that he had written a letter to the tourism promotion office, saying that the minimum room rate were in place.
However, the Minister has now told the media that minimum room rates have been removed for a couple of months.
The Minister has added that he can re-issue minimum rate gazette into force whenever required.
OSL take:
The Sri Lankan government is engaged in an aggressive tourism promotions campaign to further boost the growing tourism sector in the country. Sri Lanka’s tourism sector has been recording a continuous growth and the latest move of postponing the implementation of the minimum room rates in Colombo would definitely help promote off-season tourism in the country. Given the latest developments in Sri Lanka’s tourism industry, there are many investment opportunities that are in the making almost on a daily basis. Interested foreign businesses/investors could explore such opportunities.
| Article Code : | VBS/AT/17092018/Z_4 |