Minimum Room Rates for Colombo City hotels from October

The Gazette notification on the introduction of Minimum Room Rates (MRR) for Colombo City Hotels will come into effect from October 01, 2023.

According to the Daily FT, Sri Lanka Tourism Development Authority (SLTDA) Chairman Priantha Fernando has formally notified the General Managers of the hotels in this regard.

The new directive brings forth a series of guidelines aimed at standardising room pricing across distribution channels and necessitates Colombo City Hotels to strictly adhere to the Gazette notification and ensure uniformity in room rates. 

As per the Gazette notification, the MRR structure has been defined to accommodate different hotel categories with regard to the prices for corporate and free independent tourists (FIT).

The prices are $ 100 for 5-star hotels, $ 75 for 4-star establishments, $ 50 for 3-star accommodations, $35 for 2-star hotels and $ 20 for one-star tourist hotels. Any existing agreements that fall below the stipulated MRR will be rendered null and void starting October 01, 2023. 

Also, the prices for airline crew rooms are; $ 75 for 5-star hotels, $ 55 for 4-star establishments, $ 40 for 3-star accommodations, $ 30 for 2-star hotels and $ 20 for one-star tourist hotels. Contracts for crew stays that were executed before this date will be honoured for the duration of their current validity period.

For group bookings, regardless of the number of paying rooms a complimentary 11th room will be extended, subject to a maximum limit of 10 complimentary rooms.

Hotels are prohibited from offering supplementary incentives to ensure compliance, aiming to maintain a level playing field for all establishments, while they must also accurately present their star classification on public platforms, aligning pricing accordingly.

The SLTDA Chairman believes this careful implementation is anticipated to ensure consistency in standards and profitability in the city’s hospitality industry. (NewsWire)

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