Sri Lanka hotel occupancy rates down

Redbulls · 1 Sri Lanka hotel occupancy rates down Tue Jan 29, 2013 5:17 pm

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Jan 29, 2013 (LBO) - Occupancy rates at Sri Lanka's hotels had slipped across star categories in November 2012 from a year earlier, worsening from October despite arrivals going up, official data show.

The average occupancy rates of hotels tracked by the state tourism office fell to 76.2 percent in November 2012 from 90.3 percent a year earlier. In October occupancy fell to 73.2 percent from 80.8 percent.

The number of hotels tracked by the tourist board rose to 269 from 252 in 2011, with uncategorized hotels rising to 155 from 139.

In November 2012 occupancy in 5-star hotels fell to 76.4 percent from 90.2 percent a year earlier and occupancy in 4-star hotels fell to 75.7 percent from 91.7 percent.

At 3-star hotels occupancy fell to 77.4 percent in November from 88.8 percent as year earlier, and 2-star hotels to 77.4 percent from 89.1 percent.

At 1-star hotels occupancy fell to 75.3 percent from 90.3 percent. At unclassified hotels occupancy fell to 77.9 percent to 91.8 percent.

Sri Lanka full year tourist arrivals rose 17.5 percent to 1,005,605 in 2012.
http://lbo.lk/fullstory.php?nid=1065758218

Slstock · 2 Re: Sri Lanka hotel occupancy rates down Tue Jan 29, 2013 5:22 pm

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What ? If arrivals are going up but all 1-5 star hotel occupancies going down

a) tourists are staying with sri lankan friend families
b) staying at non starred guest houses or with Amathis

or staying at ....

UKboy · 3 Re: Sri Lanka hotel occupancy rates down Tue Jan 29, 2013 9:49 pm

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I did expect a rise in demand for 3 & 4 star hotels. However cannot come to a conclusion by judging only a month data.

Our 5 star hotels are overpriced compares to average prices in the region. AHPL top line shows the less demand (unless they closed some hotel rooms for refurbishments).

Almost all the unrated hotels, 1 & 2 star hotels are owned local/foreign businessmen. So I suspect they reluctant to show the true numbers to tourist Board? (Because more numbers mean more tax).

Hmmm...

sapumal · 4 Re: Sri Lanka hotel occupancy rates down Tue Jan 29, 2013 10:03 pm

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Tourists staying in sites. I doubt still Sri Lanka consider Chinese workers as tourists. Very Happy

klpfernando · 5 Re: Sri Lanka hotel occupancy rates down Tue Jan 29, 2013 10:33 pm

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I think sri lanka is not a up market destination yet so prices should be more realistic. 950000th tourist arrived Polish,1000000th tourist arrived chines...$200 per room ??

Chinwi · 6 Re: Sri Lanka hotel occupancy rates down Wed Jan 30, 2013 8:32 am

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Some fools in the industry are destroying the potential by making very high 'minimum rates' for rooms.

In Chiang-mai , a popular destination for leisure tourists , you can stay in very comfortable , clean and safe 2 star at 500 Baht. with all facilities, A/C, Hot water, new linen, very clean W/R etc. i.e approx Rs. 1000/- per person. ( 2 in 1 room)

You can even stay in a floating apartment in Kanchanabury same price.

Even in Bangkok, we can get 4 star BBF for 1500 Baht. i.e. 3000/-per pax. ( 2 in 1 room) (Bada palenne udeta kannath ekka )

That is how they attract people. I think final spending is more because during the day they do many activities, hiking, temple tours, river cruises, eating, exhibitions, shopping, horticulture visits, massage etc. and night life also.

Not only the big companies, the common man also should get his portion of income directly and indirectly to develop and sustain the momentum of this industry.

Sidath · 7 Re: Sri Lanka hotel occupancy rates down Wed Jan 30, 2013 8:46 am

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one or two possible explanations for the decline in occupancy despite increase in arrivals
1. More hotels. Even though the pie has got bigger the no of hotels to spread it had also got bigger.
2. Lots of foreigners are opting to use "home stays" and small rest house as others have out priced themselves.

UKboy · 8 Re: Sri Lanka hotel occupancy rates down Wed Jan 30, 2013 12:28 pm

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klpfernando wrote:I think sri lanka is not a up market destination yet so prices should be more realistic. $100 per room ??

agree with you and chinwi..

Some of our 2, 3 star hotel rooms like "kukul kotu" but the prices Crying or Very sad

Slstock · 9 Re: Sri Lanka hotel occupancy rates down Wed Jan 30, 2013 1:39 pm

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By JK stockbrokers

"Growth in tourist arrivals to Sri Lanka in 2012 has not translated into higher occupancy rates across the board, with many hotel operators - particularly in the 4-5 star category - reporting a drop in visitor volumes. We attribute this to the fact that average room rates have increased significantly in Sri Lanka over the last three
years, without a corresponding increase in the country’s overall product offering, thereby reducing its competitiveness vs. regional peers who offer additional attractions such as casinos,shopping facilities, easier accessibility, etc. Further, recessionary pressure in Sri Lanka’s largest source market - Western Europe - has resulted in increased demand for cheaper hotel accommodation. Consequently, 4-5 star hotel operators have obviously been the hardest hit, while cheaper/competitively priced hotels have reported a pick up in occupancy rates. This trend is, in our view, likely to continue over the medium term in the absence of either a revision of room rate charges or a change in marketing strategy aimed at capturing a greater share of the higher end budget segment."

Arena · 10 Re: Sri Lanka hotel occupancy rates down Wed Jan 30, 2013 10:54 pm

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Best option now is not to build new hotels But keep the cash to takeover a good hotel in 3 years time when this Sri Lankan hotel bubble crashes.There will be lot of tourist but these new hotels should manage their operations first. For that they need Cash..................can all of them survive for another 5 years.