The enforcement of Minimum Room Rates poses a long-term threat to the MICE sector, a media release from the Sri Lanka Association of Professional Conference and Exhibition Organisers (SLAPCEO) states.
“Only a handful of hoteliers support the MRR for personal gain,” the statement noted.
Excerpts:
“The Sri Lanka Association of Professional Conference and Exhibition Organisers denounces the enforcement of Minimum Room Rates (MRR) by the Authorities, a decision steeped in ignorance and shortsightedness.
“This move poses a severe threat to the vibrant MICE sector (Meetings, Incentives, Conferences, and Exhibitions), especially concerning Corporate events from India an essential segment of the upscale audience that the tourism industry is targeting.
“Despite claims of consultation, the Authorities’ failure to conduct a comprehensive survey overlooked invaluable insights from key stakeholders, including all Colombo hotels involved in hosting MICE and Corporate events, as well as the Government Authority for MICE.
“Alarmingly, as per the President of TAAI (Travel Agents Association of India), Jyoti Mahel, a significant decline in Corporate events from India, a major market and low hanging fruit for Sri Lanka, appears to have been disregarded by the proponents of MRR, amid aggressive marketing by competitors viz Malaysia, Thailand and Singapore who operate from their own offices in Mumbai and New Delhi.
“The long-term consequences of the MRR are grave for the MICE industry in Sri Lanka, which thrives on flexibility and dynamism. Corporate events from neighbouring India, crucial for sectoral growth, now encounter insurmountable barriers, threatening to seize an estimated market share of at least 20% from 1.3 million visitors annually.
“It is evident that only a handful of hotels support the MRR exploiting governmental intervention, for personal gain, while the majority abstains. This audacity, compounded by the expectation of government-led price-fixing marketing strategies against the very policy of the Government to believe in free market economy, demonstrates a blatant disregard for industry sustainability.
“Contrary to assertions, the MRR fails to enhance tax revenues and is instead circumvented through all-inclusive or combined packages. Such intervention stifles growth in a free market and drives high-end visitors away from MICE towards destinations offering greater value and flexibility.
“SLAPCEO urgently calls for the immediate removal of the MRR, stressing the necessity for collaborative, forward-thinking policies. Failure to act, risks irreparable damage to Sri Lanka’s relationship with the MICE sector specially from India, signs of which have already been observed by the industry experts,” the release further added.
