Tourism industry voices concern over MRR and visa hike

Saturday, 4 May 2024 00:56 - - {{hitsCtrl.values.hits}}

Claims regulatory challenges hinders competitiveness, growth
Lists MRR, breakfast price controls, abrupt transition from ETA visa system as challenges
Tangerine Group MD Angeline Ondaatjie highlights complexities faced by hoteliers under MRR policy
Stresses misconception of raising prices as sole marketing strategy
SLAITO Vice President Bobby Jordan Hanson warns SL might lose out on winter reservations amid visa crisis
SLAPCEO ex-official Paddy Paul highlights issues faced by European operators
Claims some bypassing Sri Lanka due to increased costs
Urges more nuanced approach to pricing policies to ensure industry sustainability
Highlights sudden transition from ETA visa system has worsened industry’s woes

Tourism industry yesterday expressed concerns over the challenges posed by regulatory measures noting that it has hindered its competitiveness and growth.

Speaking to journalists, they highlight the complexities of implementing regulations such as minimum room rates (MRR), breakfast price controls and abrupt transition from the Electronic Travel Authorisation (ETA) visa system.

– Pix by Shehan Gunasekara

Tangerine Group Managing Director Angeline Ondaatjie yesterday highlighted the complexities faced by hoteliers amidst the implementation of the MRR policy.

She explained the challenge of balancing competitive pricing with the desire for higher revenues, noting the dynamic nature of pricing across different properties and locations.

Ondaatjie cited the example of the Grand Hotel in NuwaraEliya, which could command higher rates due to its unique market positioning, contrasting with properties in the Southern Beach strip where competitive pricing was essential to attract guests.

She cautioned against the misconception that raising prices alone could serve as a marketing strategy, stressing the importance of competitiveness within the region and broader Southeast Asia.

“People say we are cheaper than Maldives. And everyone will come here. But it does not work like that,” Ondaatjie stressed.

Sri Lanka Association of Inbound Tour Operators (SLAITO) Vice President Bobby Jordan Hansen warned that Sri Lanka might lose out on winter bookings amidst the abrupt change in visa system and higher visa fees. “We have seen the sentiments shared by our clients and agents. They are frustrated. Although we may not see an immediate cancellation, there is a possibility that we might not have new bookings for winter,” she said, implying that Sri Lanka might not meet its tourist arrivals target.

For 2024, Sri Lanka Tourism has set an ambitious target of 2.3 million arrivals and over $ 4 billion income.

Hansen also shared similar sentiments with regards to the MRR, underscoring the expectation of lower prices from large tour groups.

Golden Isle Travel Managing Director and ex-SLAITO Committee Member and SLAPCEO Former Secretary Paddy Paul highlighted the challenges faced by European operators, some of whom had opted to bypass Sri Lanka due to the sudden increase in costs.

She pointed out the need for a more nuanced approach to pricing policies to ensure the industry’s sustainability.

They also highlighted the sudden transition from the ETA visa system has worsened the industry’s woes.