Sri Lanka’s industry association representing tourist hotels, Tourist Hotels Association of Sri Lanka (THASL), has raised concerns over the future of the industry if the recently proposed electricity tariff hikes for hotels are implemented.
According to THASL President Anura Lokuhetty, the island’s leisure industry would not be able to sustain such substantial increases in electricity tariffs, which has been proposed to be implemented from next year to June 2011.
“We have submitted our representations to the Public Utilities Commission of Sri Lanka (PUCSL) in this regard voicing our concerns on the proposed tariff hike. We hope to get a positive response at the public hearing to be held on December 15 in Colombo,” Lokuhetty told The Bottom Line in a recent interview. He says that the PUCSL has proposed that electricity tariffs for hotels are to be increased from the current Rs 9.30 per unit to a substantial Rs19.50 per unit, a move which would put most hotels out of business due to the extra cost burden.
“With the recent pick of the tourism industry, most of the hotels in the country are presently undergoing a phase of refurbishment by infusing a lot of capital. Therefore, this proposal for a sharp increase of electricity tariffs for the industry at a time like this would definitely affect the leisure industry in the longer-term,” he pointed out.
Having outlined the tariff proposals, the PUCSL in a notice issued recently, has stated that it had prepared a Consultation Paper on the proposed setting of electricity tariffs for the period from 2011-2015 and has requested public representations to be made to the commission in writing on or before December 8, 2010.“Representations will then be heard at a public hearing to be held on December 15, 2010 in Colombo,” the recent notice issued by the commission stated. Lokuhetty, meanwhile, commended the government for its decision to amalgamate the three tourism bodies, Sri Lanka Tourism Development Authority (SLTDA), Sri Lanka Tourism Promotion Bureau (SLTPB) and Sri Lanka Convention Bureau and at the same time leaving the Sri Lanka Institute of Tourism and Hotel Management (SLITHM) as a single agency to promote tourism.
“This is good because it will leave aside the complications involved with too many bosses and steer the ministry to one direction to achieve a common goal,” Lokuhetty said.
The government has announced that a new legislation will be introduced in this regard during the first 100 days of 2011 to enable this amendment.
Sri Lanka has targeted to achieve tourist arrivals of 2.5 billion by 2016.
