Booking.com to meet Govt. end Aug
Tourism authorities are to meet booking.com representatives in Colombo at the end of the month following government concerns on ensuring room reservation platforms fall in line with the rest of the industry.
Deputy Tourism Minister Ruwan Ranasinghe said that by the end of this month he will be meeting with representatives from booking.com.
Discussions are expected to centre on how to ensure they are brought into the legal framework of the country as they operate here.
He noted that about 50,000 plus properties listed within this platform (over-the-counter-OTAs) form a large portion of the informal sector and these need to be first brought under the government regulations. Following these discussions it was pointed out that the government’s intention is to ensure that OTAs can be levied within the next six months.
“We can take the OTAs into the government regulatory framework within the next six months,” he said adding that this would mean charging taxes which are at the moment not active for these platforms in Sri Lanka. He noted that the authorities do need to take them into the taxing system as well.
Tourism Minister Vijitha Herath’s comments in Parliament earlier this year has set the ball rolling wherein the authorities are now likely to establish a booking platform that will take over the reins of the international platforms like booking.com, expedia and airbnb.
However, the tourism industry speaking to The Sunday Times Business stated that the authorities need to first look at the pros and cons of taxing these platforms.
They pointed out that while these platforms generate large revenue for the industry as they are capable of attracting a wider clientele it is imperative not to disturb the current set up.
On the other hand, industry veterans stated that the government needs to first take into account how these platforms operate in other destinations.
By carrying out a study of these platforms in other locations it would be in the best interest of the industry to then take viable alternatives if necessary and not just react to the views of some in the sector.
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