The local hotel industry, facing a major hit by the emergence of the Covid-19 pandemic, is now moving towards a new lease of life through the services it offers in the quarantine process and domestic tourism.
President City Hotels Association and Director, Ramada Colombo, Shanthi Kumar said, already 1,200 hotel rooms have been offered to this service by nearly 40 hotels which includes global hotel chains such as Sheraton Kosgoda and Shangri La Hambantota. “This prevents the complete downfall of the hotel industry,” he told ‘Daily News Finance’.
The hotel staff too have to be in the hotel and have to provide accommodation to army staff and the doctors who remain at the hotel. The guests are instructed to remain inside their rooms where the food will also be served. The health guidelines are set by the Army along with conducting the health check-ups inside the hotel premises. A fumigation process will continue for four days upon the departure of every quarantined batch.Guests are tested prior to their arrival to the hotel ensuring that they are ‘corona free’ upon their arrival to the hotel. Anyone who requests to be quarantined in a hotel could do so paying a fixed price. The staff too are specially trained and briefed before assigning them for duties and are expected to remain at the hotel.
He said that the domestic tourism especially in the weekend for outstation hotels were on the increase with some hotels reporting over 90% occupancy.
However the new wave of Covid-19 has put brakes on this and has also slowed down the quarantine service opportunities for hotels since repatriation flights have almost stopped.”
Commenting on the recovery of the industry Shanthi Kumar said, “It will be around mid-2021 and this too will not be a 100% recovery and it will be a gradual recovery provided there is no outbreak. However this would change if a vaccine is found to fight against Covid-19.”
In order to witness an acceleration in tourism, merely opening the local airports is insufficient as other countries need to open their airports. After opening gates for tourism, the tourists are subjected to the health guidelines issued by the Ministry of Health and the Sri Lanka Tourism Development Authority. The guidelines are audited by KPMG (Klynveld Peat Marwick Goerdeler) which grants the certification whether a hotel is following the issued guidelines and can be recommended to accommodate tourists. If a hotel fails to obtain the certification the tourists will be refrained from accessing that hotel.
As to the current situation of the country the government has granted relief to the hotel industry upon their representation which includes moratorium loans, soft loans to cover working capital and other loans to pay salaries with an interest of 4%.
“However, as to the way things are unfolding, now issues may arise during the repayment of the loans inclusive of the interest, capital and old loans. If there is no visible improvement there is a possibility of close down of certain hotels in the future,” he added.
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