Sri Lankan Tourism grows

Srilal Miththapala, President, Tourist Hotels Association of Sri Lanka in a communiqué indicated that the month of December continued to show a healthy improvement in the arrivals, recording 56,862 arrivals for the month, a 16.2% increase compared to December 2008.

In the arrival pattern United Kingdom continued to dominate with about 81,500 arrivals while India generated a slightly higher figure of 82,600 arrivals.

Region wise, Western Europe accounted for 170,000 arrivals, while the figure for South Asia stood at 126,000 arrivals.

He indicated that on an overall basis, the total arrivals to the country for 2009 ended at 447,890 compared to 428,475 for 2008, which is an overall 2.1% increase. This is very significant because cumulatively up to June 2009 there was an almost a 12% drop compared to the previous year, which means that in the last six months of 2009, this deficit was not only wiped out, but also there was a small 2.1% overall increase.

Occupancy in the Negombo and the South Coast for December 2009 overall was 70-80% full while Colombo was around 60-70%. Kandy and Nuwara Eliya regions did reasonably well but the cultural triangle managed only 50-60% occupancy levels, Mr Srilal indicated.

He indicated that the minimum rates now in force in Colombo City dramatically pushed the yields up, which was clearly evident from service charge payable to Staff increased to around Rs 12,000 -20,000 in most all the larger hotels for the month of December.

One to three-Star hotels also have seen a substantial growth in the service charge increasing from Rs. 3,000/- to 7,000/-. And most Colombo hotels have seen a substantial growth in the occupancy levels over the past 3 months.

Referring to 2009 31st Night Mr Miththapala indicated that the New Years’ Eve activities continued with too much disruption due to the Poya Day falling on the 31st but Colombo City hotels yielded large numbers. In the resorts there was some dampening of rivalries, since alcohol was served only after 12.00 midnight.

He indicated that during Christmas time, staff of some hotels undertook CSR activities (Hilton raised funds for the Deaf and Blink School in Ratmalana, Cinnamon Grand Santa workshops, etc).

Looking back at the performances during the latter half of 2009 Mr Miththapala indicated that 2010 would become a challenging year for Sri Lanka Tourism. He indicated that most of the hotels would be contracting rooms at a higher price, which is vital to ensure that the hotels also refurbish and upgrade where necessary to guard against being over-priced in the region.

Several hotels are already planning refurbishing and upgrading programmes and a foavourable response to THASL's request for duty free facilities for refurbishment from the Government, is eagerly awaited.

Contemplating on issues Mr Miththapala indicated that although the Government continues to identify the Tourism Sector as the main thrust industry of the economy but the Provincial Councils see the industry as a means by which they can extract more and more taxes.

He indicated that in late last year some of the Provincial Councils levied a new, arbitrary tax on hotel on liquor and cigarette sales. The issue is that the tax is levied on retail and wholesale sales, and it is quite clear that hotels do not fall into this category, since they are in the service industry. He indicated that repeated appeals to all relevant authorities fell on deaf ears, and as a last resort THASL has now taken legal action against these Provincial Councils .

- Asian Tribune -