The Sri Lanka Hotels Association has urged the government to take immediate action against the rapid growth of unregistered accommodation providers, warning that the trend is creating unfair competition within the tourism industry.
Speaking at a media briefing in Colombo, industry representatives called for a new legal framework that would allow only establishments officially registered under the Sri Lanka Tourism Development Authority (SLTDA) to be listed on international online booking platforms such as Agoda, Booking.com and Expedia.
The association said legally operating hotels are currently facing a heavy tax burden, noting that nearly Rs. 25 out of every Rs. 100 earned is paid to the government through taxes, licence fees and other charges.
Industry representatives argued that unregulated accommodation providers operate outside this system without paying taxes or meeting regulatory requirements, creating an uneven playing field.
They also warned that the issue could affect foreign exchange inflows, claiming that revenue generated by some unregistered establishments may not be entering the formal banking system through official channels.
The association further raised concerns over tourist safety and service standards, stating that a stronger regulatory framework would help ensure quality and reliability for visitors arriving in Sri Lanka.
Chairman Ashoka Hettigoda said the association is already working with the Ministry of Digital Economy to address the issue.
According to him, a simple legal amendment could prevent unregistered properties from being promoted through international booking websites, while also increasing government tax revenue and improving accountability in the tourism sector. (Newswire)