Hotel staff leave Sri Lanka as take home pay slumps
Hoteliers, especially the SMEs, are finding it hard to pay salaries of the few workers left behind, in a country bereft of its visitors as earnings of hotels staff slumps significantly.
Sri Lanka’s economic crisis has hit hard to where it hurts the most – staff in hotels – that face a reality of a low pay check and a rising cost of living affecting their families struggling to make ends meet.
With occupancies dropping this winter season to 30 per cent,
Sri Lankan hotel staff are receiving less service charges that is contributing to a significant drop in staff incomes making it hard for them to survive as a result of which they are looking for jobs in other countries.
These occupancy levels are not even sufficient to break even to even pay staff and most hotels in the SME sector are finding it difficult, Hoteliers Association President M. Shanthikumar told the Business Times
Hotels are in touch with hotel schools around the country to fill the vacancies opening up in the hotels, he noted.
He noted that hotels staff turnover is high since they are receiving very little in the form of service charges that in a good season is usually a large part of their take home pay.
Also as a result of the low arrivals’ number, Mr. Shanthikumar explained though staff leaving the country is an issue it is however, right now “manageable”.
But when arrivals increase then the industry will need more staff to match up to the increasing demand and that would be when the service could increase and then convince people to continue to remain in the country, he noted.
So far, business to business promotions have been carried out but no business to consumer promotions to convince tourists that Sri Lanka is open for travellers, he said.
The industry is currently banking on a digital promotion campaign next year to build awareness among prospective travellers to visit the country.
Mr. Shanthikumar explained they have been in discussion with the Sri Lanka Tourism Promotion Bureau (SLTPB) in this regard. In the meantime, the private sector is engaged in carrying out their own promotion campaigns.
The long overdue global promotion campaign is on hold due to the current dollar shortage crisis, he said.
A further possible increase in electricity tariff will have an added adverse impact on an industry that is looking at an extension on their moratoriums which ends in December 31.
At the moment the amount of traffic Sri Lanka generates is mainly from Russia and India with most of the former staying at informal hotels.
The rest of the majority of traffic that is visiting the country on tourist visas is mainly the Sri Lankan diaspora that form about 40-60 per cent of the arrivals, Past President of Sri Lanka Association of Inbound Tour Operators (SLAITO) Mahen Kariyawasam told the Business Times.
He added that despite the low turnout of traffic since there was a surge in arrivals compared to the previous months this year the entrance fees to the cultural sites and historic locations have increased in an ad hoc manner.
The dollar is charged at the rate of Rs.372 while visa fees increase from US$30 to $50 from December 1 the entrance fees to wildlife parks increased by about 50 per cent which is an added burden to the tour operators who have already contracted with tourists at previous rates. As per the moratoriums on the loans, Mr. Kariyawasam noted they requested the Central Bank authorities to ensure that at least the SME sector be looked after than their larger counterparts as the former are the ones that have obtained smaller amounts in loans and are today struggling to survive.
A further dent on the arrivals is the increase in airfares with tickets to Colombo having almost doubled in price.
Meanwhile, Jetwing Hotels, one of the larger group of hotels is doing well ending up with about 50 per cent occupancy at reduced rates, Jetwing Symphony Chairman Hiran Cooray said.
Domestic travellers comprise the majority of occupancies followed by Indian and Russian arrivals, he said.
Mr. Cooray however, believes from a year of no business the industry might have a good season next year based on the positive reviews shared by the few that arrived here this time of year.
“We are coping with great difficulty and it is sad to see so many leave the country,” he commented on the numbers of hotel staff joining hotels in other countries.
However, he pointed out that the grass is not so green on the other side of the mountain as sometimes staff have to face more hardships than when they worked in Sri Lanka despite the high salaries they earn in someone else’s country.
Hitad.lk has you covered with quality used or brand new cars for sale that are budget friendly yet reliable! Now is the time to sell your old ride for something more attractive to today's modern automotive market demands. Browse through our selection of affordable options now on Hitad.lk before deciding on what will work best for you!