THASL and CCRC oppose NATA directive on ‘Happy Hour’

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THASL Chief M. Shanthikumar confirms written submissions made to Tourism Ministry, Finance Ministry and SLTDA for prompt action to avoid hotels being penalised for promoting tobacco, alcohol to boost sales and revenues
Stresses such regressive policies could harm tourism industry
Top restaurateur and CCRC past President Harpo Gooneratne says consistent and progressive policies are must

By Charumini de Silva

The Hotels Association of Sri Lanka (THASL) and Colombo City Restaurants Collective (CCRC) have strongly opposed a new directive from the National Authority on Tobacco and Alcohol (NATA), which prohibits hotels from offering any discounts on alcohol purchases, deeming it a punishable offense.

“We have already submitted written objections to Tourism Minister Harin Fernando, State Minister of Finance Shehan Semasinghe, Tourism Ministry Secretary Buwanaka Herath and SLTDA Chairman Priantha Fernando, urging them to ensure that hotels are not penalised for promoting tobacco and alcohol to boost sales and revenues,” THASL President M. Shanthikumar told the Daily FT. Shanthikumar criticised the directive, particularly the prohibition of “Happy Hour” promotions that include both drinks and food.

He argued that such regressive policies could harm the industry.

“The Rs. 50,000 fine is ridiculous,” he said, adding that hotels are in no position to comply with such unfair directives.

He also noted that the hotel industry is one of the highest revenue contributors to the Government from tourism and expressed disappointment at receiving such directives from authorities like NATA.

Separately, top restaurateur and Colombo City Restaurants Collective (CCRC) past President Harpo Gooneratne described the directive as shocking and unacceptable.

“If tourism needs to be developed, there should be consistent and progressive policies. The NATA directive is absurd,” he said.

Gooneratne cited the latest decision by the Thailand Government to give free-visa for 93 countries as an example for progressive decisions.

CCRC is the apex body representing the food and beverage industry in Colombo.

In a letter dated on 28 May to a leading star-class hotel in Colombo, NATA Chairman Dr. Alan Ludowyke noted that NATA had received several complaints about hotels offering discounts on alcohol products, including “Happy Hour” promotions.

The letter mentioned that according to NATA, this practice violates Section 37(2) of the NATA Act No. 27 of 2006. Violating this section can result in a fine of Rs. 50,000 and each Director of the offending establishment could be deemed guilty of the offense.

Thus, the NATA has directed hotels to comply with all provisions of the NATA Act No. 27 of 2006 (as amended).

THASL and other industry stakeholders are calling for immediate intervention from the relevant authorities to address their concerns and ensure that hotel promotions are not unfairly penalised under the NATA directive.

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