Hotelier India

QUICK CHAT

THE LONG ROAD TO RECOVERY Hotels in Sri Lanka are seeing an increase in cancellations after the bombings that killed over 250 people. Rahul Chaudhary, managing director at CG Corp shares his views about the effect the attacks will leave on the once-vibrant hospitality industry in the island nation.

BY HOTELIER INDIA

ri Lanka, which had been listed as the destina- tion of the year by every travel list and magazine across the world, and was attracting a plethora of tourists, is facing a huge setback after a series Sof bombings on Easter Sunday left several people dead in churches and hotels. The violence interrupted a period of relative peace in the country following the end of civil war in 2009. Its impact will affect the hospitality industry for a long while to come, not just because tourists will stay away for a bit, but also because it will delay the planned investments in the sector. Hotelier India speaks to Rahul Chaudhary, managing director, CG Corp.

What do you think would be the biggest fall out on Sri Lan- ka’s tourism industry and its hospitality businesses? An attack like this, from any perspective, is devastating. From an industry point of view and for the tourism sector, this is probably the worst thing that could have happened to Sri Lanka. It will greatly impact the hospitality business as people won’t feel safe travelling to and within the country. It has lowered the confidence in the country in terms of security and returns for investors.

The Sri Lankan economy is heavily dependent on tourism. How do you think the economy will hold up if the tourism segment partially shuts down? In order for the economy to hold up, as the tourism segment sees a downturn, we will have to work closely with the authorities as well as investors and banks. The presi- dent of the country has also spoken about restructuring bank loans, and this is a step in the right direction. When it comes to tourism, additional security measures need to be put in place in all public areas.

Do you think hospitality companies across the world need to pay a lot more attention to security and spend more on it? What strategies should the hospitality industry adopt to deal with a situation like this? A lot of money is spent on design, technology and luxury such as bathtubs, but security tends to take a backseat sometimes. The hospitality business needs to focus a little more on security. That said, this does become a tricky situation, as people don’t want to be watched all the time. The

22 | MAY 2019 | HOTELIER INDIA www.hotelierindia.com QUICK CHAT

to such situations. At the end of the day, either the terrorists were from the country or have entered the country, which is a huge security lapse. In a country like Singapore, guests just walk into hotels without any security check, because the The Kingsbury Hotel, Colombo government's security network is very strong. Hoteliers should be left to running and marketing a hotel, and not worrying about security.

The attacks will Do you think hotel groups and in- greatly impact vestors in the tourism and hospi- the hospitality tality industry will pull back until business as people things normalise? Even though Sri Lanka has seen a won’t feel safe lot of investments in the past few travelling to and years, investors will definitely be within the country. cautious at the moment. I was plan- It has lowered ning investments in the country, but the confidence have deferred the decision. I am go- in the country in ing to watch how things pan out. terms of security Cinnamon Grand Colombo and returns for Already a lot of countries, includ- investors.” ing India, have issued an advisory against travelling to Sri Lanka. How long do you think it will take to recover? We will definitely come out of it especially since this industry is the backbone of the country’s economy. It is a very delicate situation, hence, countries will issue a travel advisory—that is natural. We, in the industry, and the government, need to get our act together, make sure the required systems are in place and Sri Lanka will get back on its feet. As far as hoteliers are concerned, we can conduct ag- The Shangri-La Hotel in Colombo gressive marketing campaigns, especially on social media and try whole reason why people go on a vacation is to get away from to build some confidence among their regular life, and when they enter a resort or hotel they don’t people to convince them to come expect something like this to happen, nor does the industry. This is back to Sri Lanka. an industry that offers experiences. Can we have more security? Yes. These are situations you can The country’s tourism sector is only learn from and rectify. Sri Lanka, as a country, is not perceived said to support almost one million as one with a security threat. The terrorists hit all the hotels on the jobs. How do you think the econo- same road itself, mainly for publicity. The industry has to take pre- my will cope, particularly when it cautionary measures such as deploying the right security equip- comes to employment? ment and personnel, as well as conducting a proper background There will be an impact on jobs, check on the people coming in. hotels will have to downsize. How- ever, I don’t think people will want to What do you feel the government should do to handle the situation? leave the country for employment It has to start with the government, who needs to develop a strong- elsewhere. This kind of situation can er intelligence system, as well as a more proactive system to react happen anywhere in the world. HI