Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 218 Mon. January 03, 2005  
   
Business


Lanka hotel industry estimates Rs12-13b tsunami damage


Around 4,000 hotel rooms in Sri Lanka have been damaged by the tidal waves and the hospitality industry estimates that the restoration cost would run as high as Rs 12 billion to Rs 13 billion, a senior industry spokesman said.

"How fast we can normalize depends on how fast we get our insurance claims and how quickly we re-construct,'' Tourist Hotel Association Chairman Malin Hapugoda said Sunday.

The association had an emergency meeting last week is seeking duty free imports of equipment necessary for the repairs and had channeled their request to the government through the Tourism Ministry and the Sri Lanka Tourist Board.

"We believe that the government would be sympathetic,'' Hapugoda said.

A spokesman from the Sri Lanka Insurance Association said they could not meet the claims from the hospitality industry until they have made certain clarifications with re-insurers abroad regarding most claims having an earthquake rather than a tsunami clause in their policies.

Hapugoda said they believed that the big companies had earthquake cover and would not have problems but the smaller hotels without such cover may be in trouble.

Tourist Board Chairman Udaya Nanayakkara was confident that the industry which had suffered damages estimated at around US$ 2 million would soon get back on feet. He said that no financial assistance from the government had been requested and he did not expect hotels with earthquake cover to have any problems with their insurance claims.

Hapugoda said the executive committee of their association at their meeting on Friday had decided to engage the services of Nivard Cabraal and his company to represent their interest with regard to the insurance claims.

Nanayakkara said the US$ 7 million campaign to promote the Sri Lanka destination next year will continue as planned while Hapugoda said the problem of obtaining soft loans from foreign funding agencies for restoration and re-construction will also be explored.

"If all goes well, hotels on the coast from Negombo to Induruwa can be fully operational by the end of January,'' he said. "But hotels on the east coast and deeper in the south that are badly affected will take longer.''

Jetwing Hotels Managing Director Hiran Cooray who is a vice president of the Sri Lanka Hoteliers Association said that they were more concerned about the loss of life rather than material losses.

He said in addition to many guests, they had lost 12 members of their staff at the Yala Safari Game Lodge. About 100 tourists countrywide are believed to have died in the disaster while 89 are still missing.