The Sri Lanka Association of Inbound Tour Operators (SLAITO) has recently voiced apprehensions regarding the government’s intervention in determining the pricing of hotel rooms in city establishments. This development has sparked significant concern within the industry.

1. It is insisted that rates should be determined by supply and demand dynamics to foster a thriving tourism industry.
2. The argument is made that the promotion of Colombo could be impeded, and MICE tourism adversely affected by this move.
3. It is claimed that the decision might be influenced by a select group of hoteliers.
4. It is asserted that the regulator must bear full responsibility for any negative repercussions arising from MRR.

The recent decision to impose Minimum Room Rates (MRR) for Colombo hotels has elicited concern from the Sri Lanka Association of Inbound Tour Operators (SLAITO), which voiced its objections yesterday.

The apex body, representing Destination Management Companies (DMCs), strongly believes that market-driven rates, reliant on supply and demand dynamics, are deemed crucial for a thriving tourism industry and should not be subject to Government regulation, according to their statement.

On Friday, an Extraordinary Gazette on MRR was issued by the Government, which is slated to become effective from 1 October.

However, it is contended by SLAITO that this move might potentially impede the promotion of Colombo as a destination and could have a detrimental impact on the burgeoning Indian MICE (Meetings, Incentives, Conferences, and Exhibitions) market, which has experienced rapid growth in recent months.

Similar sentiments, it is claimed, were expressed by the Sri Lanka Association of Professional Conference, Exhibition & Event Organisers (SLAPCEO), the association responsible for MICE, who strongly objected to this regulatory decision.

Adding to the concerns is the apparent lack of consultation with SLAITO, despite the association being a key player responsible for bringing the highest number of tourists into the country. The decision to implement the MRR was made without their input or participation in any prior discussions.

“Regrettably, SLAITO (which brings in most tourists into this country) had neither been consulted nor included in any discussion before this arbitrary decision was taken,” the statement added.

The industry body further noted that the consequences of imposing these rates have not been thoroughly assessed or strategically considered. It is suggested by SLAITO that this decision may have been influenced by a ‘select group of hoteliers’, potentially with vested interests.

“SLAITO is of the view that it will result in irreversible long-term damage to the tourism industry for which the regulator will have to take full responsibility,” the association asserted.

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