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Sri Lanka’s over-priced hotel boom ending: equities report

Feb 09, 2013 (LBO) - Sri Lanka is about 500 to 800 US dollars more expensive than alternatives for a 10-day holiday with standards lower than competition, which may hit occupancy in the future, an equities research report has warned.
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A 10-day holiday in Sri Lanka may cost between 2,000 to 2,600 US dollars with a 4 to 5 star category accommodation or twin sharing, with airfare, 'Trying to live up the hype," a report on the leisure sector released by Capital Alliance, a Colombo brokerage says.

Sri Lanka's best facilities also do not compare with similar facilities elsewhere, the report said.

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Incomparable

"Most of our 5-star hotels properties are comparable to 3-4 star products elsewhere," Purasisi Jinadasa, head of research at Capital Alliance told LBO.

colombo 5-star hotel rate, comparison

But room rates were around 20 percent higher than competition with prices being driven up due to lack of international grade competition.

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In Colombo the ratio of international chains to local was only 29 percent.

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This compared with 43 percent for Mumbai, 60 percent for Bangkok and 68 perce
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