Double trouble

Hikkaduwa hoteliers irked over new liquor licence fee:

by W.T.J.S. Kaviratne

The Government’s decision to implement the 2015 interim budget proposal to double the annual liquor licence fee has irked tourist hotel and guesthouse owners, many of who warn that the move could adversely affect the tourism industry.

Hikkaduwa tourist hotel and guest house owners discuss liquor licence issue

Revenue proposals in the 2015 Interim Budget presented in January this year, recommended that the licensing fee be doubled until such time the licensing procedure is reformulated through a tender process to ensure no one possesses more than three liquor licences.

Owners of Sri Lanka Tourism Development Authority (SLTDA) approved tourist hotels and guest houses in the Hikkaduwa resort area convened a meeting at Coral Sands Hotel recently to vent some spleen and discuss the doubling of the annual liquor licence fee, which now requires them to pay an additional Rs 250,000 to what they have already forked out this year. The owners claimed the new fee of Rs 500,000 was way above the approved rate for 2015.

Literally adding salt to an already opened wound, the Hikkaduwa Divisional Secretary had sent a letter dated March 25, 2015 to all SLTDA approved hoteliers and guest house owners in Hikkaduwa, requesting they pay the revised licence fee.

Deadline

They had been given a three-day deadline to comply with the request.

The letter sent by Divisional Secretary had reached the hoteliers only on March 31, 2015, leaving the hoteliers in a flux, angry that they had not been informed in advance about the doubling of the licence fee anduncertain what to do about the request.

The hoteliers claimed it was not possible for any of them to pay such a large amount of money within a few hours.

The hoteliers and resthouse owners vehemently opposed both the increase and the deadline given to them, threatening to close down the liquor bars in their hotels, if reasonable action is not taken immediately by the relevant authorities to repeal the unreasonable liquor licence fee.

Alternative

Pedestrian safety an issue for tourists

Speaking on issue, Chairman of Hikkaduwa Tourist Hoteliers’ Association (approved by the Sri Lanka Tourism Authority) and Vice Chairman of the Colombo Hoteliers’ Association, Siri Gunawardena warned that taking a decision of this nature without consulting the hoteliers was both unfair and undemocratic.

He said the latest decision of the Ministry of Finance and other relevant authorities would lead to repercussions affecting every aspect of the tourism industry across the country.

Vice Chairman of Hikkaduwa Tourist Hoteliers Association, A. Harischandra, who is also the proprietor of Palm Garden Hotel, said If immediate action is not taken by the authorities to revert to the former annual liquor licence fee of Rs 275,000, which the hoteliers had already paid for the year 2015, the only alternative was to refrain from obtaining a liquor licence and to close down the bars in their hotels.

A significant number of unauthorised hotels and guest houses in Hikkaduwa operate without liquor licences, and Harischandra warned that the exorbitant licence fee would drive the authorised hoteliers and guest houses owners to resort to selling liquor to their guests illegally.

He said liquor was freely available everywhere in Hikkaduwa and the unauthorised liquor outlets were already posing a great threat to the survival of Tourist Board authorised hotels and guest houses.

Bailed out

Referring to the trend of offering licences to foreign liquor shops with political backing, especially during the previous regime, he revealed that four of the six liquor shops in the Rathgama electorate were located within the Hikkaduwa Tourist Resort area.

He said foreign holiday makers were in the habit of buying liquor at a cheaper price from these wayside liquor shops.

M. Piyal, owner of Nippon Villa angry over how guests often misuse the mini-bars in his hotel, using the mini fridge to store liquor bought from outside, was firm in his stance.

He said he would rather close down the liquor bar in his hotel that pay the new licence fee.

Sidewalks

He pointed out that unauthorised places catering to tourists were in the habit of obtaining the services of a person to pose as the owner or a responsible employee, to thwart the police or the officials of the Excise Department, whenever the places are raided.

Explaining that the whenever the individual posing as the hotel owner or senior employee is arrested for selling liquor without a license, he is quickly bailed out by the real owner, he demanded that the owners of the unauthorised establishment be fined and that the fine be increased in tandem with the increased licence fees.

Garbage dumped into the canal

Secretary, Hikkaduwa Tourist Hotel Association, Nissanka Epaliyana said the hoteliers and guest house owners earned foreign exchange for the benefit of the whole country but so far nothing had been done in Hikkaduwa to improve either the tourism industry or infrastructure, which needed immediate development.

All the canals and water ways around the Hikkaduwa Tourist Resort are highly polluted and garbage could be seen dumped in these canals making them breeding grounds for mosquitoes, he said, pointing out that the ‘ by -way ’for long distance passenger buses, proposed more that 20 years ago was still confined only to tea parties for the officials attending conferences held in Hikkaduwa.

Over the years politicians of many governments had numerous discussions both in Hikkaduwa and in Colombo but the proposed ‘by-way’ never saw the light of the day, he said, adding that reckless driving through the Hikkaduwa main road had been a perennial complaint of foreign guests.

The main road running through the Hikkaduwa Tourist Resort should be made available only for the tourist traffic, he suggested.

He also pointed out that there were sidewalks and that shopping at wayside boutiques in Hikkaduwa was a risky job for the tourists. Every season several foreign guests to Hikkaduwa become fatalities in accidents caused by speeding traffic, he said.Director-Sales and Marketing, Lavanga Tourist Hotel, Mrs. Anusha Frydman referring to the gazette notification regarding liquor licence fee she had received , said the contents of the document were highly confusing. She said the document was meant for the liquor manufacturers and that her hotel never manufactured liquor.

She revealed the newly imposed 100% increase of the annual license fee could be for the Beer and Arrack Manufacturers and not for hoteliers or guest house owners. If the authorities were imposing unbearable taxes, she said the Rs 2,500 increase in salaries for private sector employees could become an impossible task.

If taxes are doubled the tourism industry will be not survive and if the establishments threaten to close down, the employment problem could become worse in the tourism sector, she warned

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[Interim Budget Proposal on liquor]

There has been a lot of misuse and manipulation of liquor licences where the country has been deprived of due revenue.8.37 Therefore it has been decided to reformulate the licensing through a tendering process. Under this system, no one person can possess more than three licenses. In the process of tendering a fool proof system will be adopted.8.38 Until such time the proposed scheme is implemented, the licensing fee will be doubled.8.39 All liquor manufacturing and beer manufacturing companies will be liable to pay a minimum of Rs. 200 million per month. This provision has been made in order to discourage the small-time operators and rationalise the number of manufacturers.8.40 Action will be taken in the future to issue liquor licenses in a transparent manner following an open tender procedure commencing 2016.