Tourists, this winter season are looking for low-priced accommodation, a development that has affected hotels and resorts with the season not attracting travellers to today’s “expensive” hotels. More visitors are arriving and the target of one million arrivals would be achieved but they find star-class hotels too expensive since the war ended with prices increasing [...]

The Sundaytimes Sri Lanka

Tourists seek cheaper accommodation

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Tourists, this winter season are looking for low-priced accommodation, a development that has affected hotels and resorts with the season not attracting travellers to today’s “expensive” hotels. More visitors are arriving and the target of one million arrivals would be achieved but they find star-class hotels too expensive since the war ended with prices increasing since 2009.

Reasons for the sudden shift in tourist preferences were also blamed on the recession in Europe and increased regional competition. Jayantissa Kehelpannala, Sector Head Sri Lankan Resorts of the John Keells Hotels Group and newly appointed Hotels Association President, speaking to the Business Times admitted there was a drop in bookings but remained cautiously optimistic that nothing could be predicted today since last-minute reservations were observed lately in the winter season. As at now “there is a drop but I emphasise the booking patterns have changed drastically,” he said.

City Hotels Association Chairman M. Shanthikumar said they expect city hotels to generate occupancies at 70% this winter but expect fewer tourists in resorts. More Russian and Ukrainian tourists are now looking for informal accommodation, he explained adding that “this is not a healthy sign” and this sector needs to be monitored.

He said visitors were attuned to finding accommodation at US$30-40 during the war but today hoteliers are seeking a return on their investment. Malaysia and Thailand however, remained more competitive since their costs of operation were at least 40 per cent less than Sri Lanka.

“Now there is a change and the product has been upgraded,” he said while dismissing any allegations of no value for money since today’s hoteliers believe they are upto international standards. Sri Lanka was recently awarded the best destination that provides value for money at the annual London international travel fair.




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