Electricity tariff reduction by 30% huge relief for tourism sector-THASL

The hotel industry welcomed the decision to reduce electricity tariff by 30% and said that it would bring about a huge operational cost benefit for the industry, said President Tourist Hotels Association and City Hotels Association, M. Shanthi Kumar (Pictured).

THASL said that they have been lobbying for this with successive governments with no avail and thanked Minister Vijitha Herath and the NPP government for providing this incentive. “We have also gone to courts over this matter and we are happy that this is now settled.”

He disclosed that for some five star hotels in the country their monthly electricity bill is around Rs. 20 million and this gives them a huge saving. Asked if the benefit of this could be reflected in room rates and F&B prices he said that it’s not immediately possible. “This is because there is a 30% plus tax that was imposed by the previous government on the industry.”

Meanwhile Chairman Thema Resorts Chandra Wickremesinghe (Pictured) who has an inventory over 400-star class keys welcomed this and said that it will give them a big saving from their overall costs. “Currently electricity takes around 10% of our operating costs and this is a major saving for us.”

He said that these savings can now be used by the industry to pay up their bank loans which the industry was struggling due monthly high overhead like a high electricity bill. He also said that this saving can also be channeled towards employee welfare. “The hotels that have not taken bank loans can reinvest this for refurbishment and expansions.”

Meanwhile another hotelier said that this positive move by the government also gives a clear message that they are genuinely keen in developing the tourism sector. “It will help new entrepreneurs both local and foreign to invest in the sector in Sri Lanka.”

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