Minimum Room Rates a needed market push: Hiran Cooray - Business News

By Nishel Fernando 

Jetwing Hotels Chief Hiran Cooray defended the Minimum Room Rates (MRR) as a necessary market push under the current environment for Colombo City hotels to return to profitability while increasing earning capacity for their employees.

“You try to market a hotel and see, it’s not easy. People don’t have the confidence, and when there is fear, you don’t necessarily go out and sell at a higher price. That’s why it’s necessary for someone to come and push it up. Finally, hotels are making money, do you want to stop that? ” Cooray questioned. 

He pointed out that MRR which came into effect from 1 October last year has not only supported hotels to return to profitability, but also their employees to increase their income in service charges, averaging up to around Rs.70,000-80,000 per month. 

In making the case for continuation of MRR, Cooray stressed that MRR provides hoteliers and travel agents with much needed confidence to price room rates accordingly, while simultaneously elevating service standards. “President says that he wants rates to be US$ 250, it will take some time. But when hoteliers and travel agents get the confidence, it can be then pushed up,” he said. 

He also viewed MRR as a ‘market push’ instead of an intervention. 

“As a Sri Lankan, you want more or less money to come into the country? It’s simple as that,” he added. Meanwhile, Cooray shared that the industry expects a ‘good’ summer to maintain the current growth momentum.   “We are heading into May and June, which is slightly on the lower side, but overall, we expect a good summer as well,” he said.