Colombo Hotels Hike Rates To Offset Visitor Drop

2nd January 2008 (Last Updated January 2nd, 2008 08:42)

Luxury hotels in the Sri Lankan capital of Colombo have increased room rates by 20 percent in a bid to offset costs caused by a drop in tourist numbers as the country's civil war intensifies. Minimum room rates in the city have increased from US$70 to US$105 in an attempt to boost reven

Luxury hotels in the Sri Lankan capital of Colombo have increased room rates by 20 percent in a bid to offset costs caused by a drop in tourist numbers as the country’s civil war intensifies.

Minimum room rates in the city have increased from US$70 to US$105 in an attempt to boost revenues and raise staff wages, news agency AFP reports.

Sri Lanka Tourism says tourist arrivals in 2007 dropped by 20 percent to 470,000, and tourism industry earnings fell 15 percent to US$302.5m over the ten months to October from the same period in 2006.

Earlier this week, suspected Tamil Tiger rebels set off a roadside bomb in Colombo, killing five and wounding 26.

Although no tourists were caught in the blast, the Nippon Hotel suffered extensive damage and staff were injured.

By staff writer