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Minimum Room Rate squashed by Court of Appeal

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The Court of Appeal yesterday issued interim orders in the cases CA Writ 691/23 and CA Writ 695/23 suspending the operation of the order published by Extraordinary Gazette No.2349/02 dated September 11, 2023 which imposed a Minimum Room Rate (MRR) for corporate and free independent tourist hotel rooms located within the limits of the Colombo Municipal Council area.

The petitioners argued that the MRR was implemented without adequate consultation with key stakeholders in the tourism industry. They claimed that the rate lacked a rational basis, pointing out that the Sri Lanka Tourism Development Authority did not conduct a proper study before imposing the impugned MRR. Several key stakeholders pointed out that the MRR would unfairly favor certain hotel categories while detrimentally affecting the industry as a whole.

The suspended notice, as published in Extraordinary Gazette No.2349/02, set the MRR at USD 100 for five-star tourist hotels, USD 75 for four-star hotels, USD 50 for three-star hotels, USD 35 for two-star hotels, and USD 20 for one-star hotels.

Criticism from a significant number of stakeholders was leveled against this notice. Until the final determination of the case, the MRR will cease to operate, as per the interim orders issued by the Court of Appeal.

Faiszer Musthapha, PC with Shaheeda Barrie, Tharaka Nanayakkara, Amila Perera and Sierra Amarasiri appeared for the Petitioners including Sri Lanka Association of Inbound Tour Operators.

Sanjeewa Jayawardena, PC appeared for the Hotels Association of Sri Lankain support of the MRR.

The post Minimum Room Rate squashed by Court of Appeal appeared first on DailyNews.

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