‘‘Minimum Room Rate huge blow to Lankan MICE market’’
Sri Lankan Conference and Exhibition Market (MICE) will have a huge blow with the implementation of the Minimum Room Rate (MRR) and it will also have a major negative impact on the Indian arrivals, said leading tourism stakeholders at a joint press conference yesterday.
President Sri Lanka Association of Inbound Tour Operators Nishad Wijetunge said that the Minister of Tourism Harin Fernando who is back in Sri Lanka has been briefed about this and he has sought more time to study this. He said that Sri Lanka may be the only country in the world where the government calls and determines hotel prices in an industry run by the private sector. Indian Travel Agents Association has indicated that the implementation of MRR will dip Indian arrivals who certainly use Colombo for a minimum two night stay while one of Sri Lanka’s leading Thinks, Advocata too has spoken against this.”In addition Nepal’s only nominee in Forbes list, Binod Chaudhary who has several hotels in Colombo too has stood against this.”
In addition most of the five star hotels too are opposing this as they all know that this MRR will kill the hotel industry in Colombo city. The current five star bed and breakfast rate which is around USD 85 will now move up to around USD 150 plus which will have a major impact on some of the price concerning Indian travelers. He also said that booking engines too would not be able to sell Colombo as their prices with commission would go up over USD 160. New Delhi five star hotels sell a ‘bed and breakfast double’ package for around USD 90, Kuala Lumpur 60 and Dubai 83.
“These prices will make Sri Lanka one of the highest price destinations. We know room rates have to be increased but this is not the time to do so as the industry is just picking up.”
Imran Hassan from Sri Lanka Association of Professional Conference, Exhibition & Event Organisers (SLAPCEO) said that they have already missed two large MICE events bringing over 100 guests due to the implementation of the MRR.
Vice President Nalin Jayasundara said the industry spends around Rs. 2 billion for Sri Lankan tourism promotions and they were not properly consulted before implementing this MRR. Committee Member SLAITO Rohan Abeywicrama said that this move is mooted by a few run down hotels who think they can earn higher revenue by this move. He also recalled that the MRR which was introduced in 2019 failed.
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