Volcanic ash clouds cause 15% drop in hotel occupancy

by Lalin FERNANDOPULLE

Many hotels lost around 15 percent occupancy due to the cancellation of flights over a week with signs of the Iceland volcanic ash clouds disappearing from European skies, said heads of hotels and resorts across the country.

They said the impact of the crisis was immense as many hotels and resorts expected around 70 percent occupancy in April anticipating more arrivals following the peaceful environment in the country. Airport sources said the loss due to grounding of flights surpassed half a million US Dollars and depending on the time it would take for the complete resumption of flights the loss could be much higher.

The volcanic ash clouds that hovered across many countries in Europe halted flights for over a week causing a loss of US$ 1.7 billion to the airline and travel industry globally, according to reports on Tuesday.

Hotel operators said they did not charge for the cancellation of bookings as a goodwill gesture and agreed to bear the cost.

Vice President Sri Lanka Tourist Hotels Association, Amal Goonetilleke said Colombo hotels had a marginal impact as tourists from other locations had come to the city not knowing the crisis would take a long time. "Many hotels offered special prices while others provided free internet access to visitors stranded due to flight cancellations. Hotels and resorts provided facilities as a goodwill gesture", she said.

Travellers to European destinations sort accommodation in Hotels in Negombo expecting that the situation would return to normal soon. (LF)