City hotels decide to charge standard rate
Shirajiv Sirimane
The City hotels have decided to charge a standard amount with effect
from January 1 2008. This move was initiated to give the destination
more value and to create a level plain field.
Vice President, Tourist Hotels Association of Sri Lanka, Amal
Goonatilleke said that they have also decided to do away with the ‘net’
rate and the guests would now have to pay all the taxes in addition to
room charges.
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Vice President, Tourist Hotels Association of Sri Lanka, Amal
Goonatilleke and President Hiran Cooray
Picture by Shirajiv Sirimane |
“When a guest pays US $ 100 for a room the hotel has pay around US $
27 for other overheads. In the future this would be added to the
customer.”
She said that over 65 per cent of the city travellers are business
clientele and they would not have a major problem with the increased
rates. An average star class hotel is now being sold for around US $ 60
and with the implementation of the latest minimum rates it should go up
to minimum US $ 90 with Colombo Hilton be able to charge over US $ 100
mark.
“This would be a good achievement and would bring in more revenue for
hoteliers, share holders and employees as well. “The money would be also
utilised for reinvestments.”
It is expected that a 250-room hotel with this increase of US $ 10
rate per guest, could earn an additional Rs. 100 million per year.
President City Hotels Association, M. Shanthikumar said that this move
would also help for the employees to get a better service charge.
“Presently they are offered around Rs. 5,000 and we expect that this
amount would be more than double the earning with the new scheme in
place,” he said.
He said this system was also introduced in 1992. “However it failed
as there was undercutting among the hoteliers and other problems also
emanated,” he said.
However, we are confident that it would be a success this time as we
have learnt from our past mistakes,” he said. Additional Director
Ministry of Tourism said that this move was initiated by a committee
formed under the new Tourism Act and also said that it would be more
advantageous for the hoteliers in the long run. |
