THASL commits to reduce use of imported items in hotels; steps up reliance on local food

M. Shanthikumar

The apex body of the industry, The Hotels Association of Sri Lanka’s (THASL) Executive meeting members took a bold decision to strongly recommend to reduce consumption of imported goods and services in hotel operations as it is a critical aspect to bring about economic stability in the country.

“Listening to the voice of the Central Bank of Sri Lanka (CBSL), especially repeated requests from the Governor, we felt the hotel sector in the country has a large role to play in contributing to bring about economic stability. 

Traditionally, hotels have been using imported food items and others in their daily use. This now needs to be relooked at in the present context,” THASL President M. Shanthikumar said.

“As much as, in foreign exchange earnings, tourism stood as the second highest forex earner to the country with hotels contributing to most of it. Our main focus has always been to increase forex earnings. Now THASL has gone a step forward to curtail costs,” he added. 

“Understanding the present climate and the risk of the country being at the brink of collapse unless consumption is reduced, we felt it is the duty of our sector to take some bold decisions. THASL took a bold decision to recommend to its membership to reduce consumption of imported goods and services with immediate effect. Of course, the results of this will be seen in the next few months,” Shanthikumar said.

If a focused approach is taken, the hoteliers feel that this will contribute tremendously to economic recovery. The standard of most Sri Lankan products is now of very high standards and foreign travellers love to experience the destination including its cuisine apart from the cultural and natural attractions the country has on offer. 

“Hoteliers were very vocal of the fact that tourists do not demand imported food items when they stay in hotels. This is a misconception one hotelier stated. In fact, they are more than happy to experience the Sri Lankan flavours,” he said.

In 2018, the registered accommodation sector generated an annual revenue exceeding Rs. 120 billion with a large portion of this coming in as foreign exchange or being converted at the prevalent exchange rates on dollar contracts. 

Food and beverage are key elements in a hotel and the need to reduce the use of imported items to reduce dollar outflow has now been identified and THASL is committed to pushing this initiative out to their membership. This will also be a cost-effective exercise for business units and will help profitability during these difficult times when top line revenues and pricing are challenging.

“We are keen to show the Government what we can do,” Shanthikumar said. There are hoteliers who have practiced the use of local products over the past 10 years. 

Jetwing Group of Hotels Chairman Hiran Cooray said that the entire gamut of the Tourism product should be ‘ uniquely Sri Lankan’. Having hotels ranging from 3 stars to top end boutique properties earning room rates exceeding $ 500-600 per day, Jetwing Hotels had taken this decision over 8 years ago and today 90% of the products used in Jetwing hotels are produced locally “not a single complaint,” he proudly stated.

Known for its top-end boutique properties across the country, Resplendent Isle Chairman Malik Fernando endorsed the initiative. He stated that Sri Lanka hotels should be bold to be indigenous and be proud to sell our own products. 

“We have talented chefs here and they can work on offering progressive Sri Lankan food. Across the world Sri Lankan ingredients are used in different types of cuisines and he welcomed this move by THASL,” Fernando said, adding that hoteliers have the opportunity to charge 25% more for such unique offerings which will largely benefit the community as well.

“We have told the THASL membership that hoteliers already focused on the use of Sri Lankan products will share the knowledge and experience with any other member as a service to the industry,” said Siddhalepa Ayuvedic Resorts Chairman and Owner Asoka Hettigoda. He continued to say that it is important for hoteliers to act responsibly during this period.

Tourism earnings amidst turbulent times have recorded exceeding $ 600 million as at end-May. The industry is confident that a peaceful political environment will help drive this figure to a target of an additional $ 1.5 billion by end of 2022.

The growth of Tourism will have far reaching effects as it gives over 500,000 direct and indirect employment and there are over 3 million people dependent on Tourism, meaning 12% of the entire population. 

The GDP contribution in a normal year stands at 12%. An industry which has shown resilience overcoming challenges since its beginning in the 1960’s, is struggling for survival due to being hit by a triple blow since the Easter bombings in early 2019 to the pandemic and the economic crisis which has directly hit the Tourism.

The Hotels Association of Sri Lanka ( THASL) membership situated across the country comprises international brands, local hotel chains, independent standalone hotels, Boutique resorts, bungalows, wildlife lodges, villas etc and are confident that this initiative will contribute to the national recovery process. 

They hope restaurants, rest houses, guesthouses and all other industries will strongly work towards using only Sri Lankan produce and consciously reduce consumption of imported items.