Sedona GM in hot water over rates

YANGON, 23 August 2012: After capping Myanmar hotel rates, the Ministry of Hotels and Tourism is getting tough with at least one five-star hotel in Yangon that has allegedly ignored the ministry’s order.

The ministry issued a letter late last month demanded that the Sedona Hotel comply with its cap on hotel rates according a report in Myanmar Times Online.

The cap is set at US$150 per night and was introduced last June by the Ministry of Hotels and Tourism.

According to the report, hotel general manager, Saman Sarathchandra, was told he would not be allowed to re-enter the country for six-months as a penalty for the hotel alleged failure to comply with the ruling. He is currently in the country but once he leaves to renew his visa, re-entry would be denied.

The letter also requested the hotel owners to replace Mr Sarathchandra as general manager for the six-month period.

The ministry had received several complaints from travel companies that Sedona Hotel had failed to abide with the rate ceiling and refused to give contracts for rooms to local travel agents.

Supporting evidence was forwarded to the Union of Myanmar Travel Association stating that the Sedona Hotel revised contracts rate from US$200 for standard room to US$220 in late June.

However, Mr Sarathchandra argued that the hotel was basically complying with the government’s request and this was just a miscommunication between them.

He argued that on 26 June the hotel met with the ministry and had been informed that the maximum rate would be set at US$170 for a standard room.

Mr Sarathchandra claimed that on the next morning the ministry announced a US$150 rate and on 30 June, the ministry provided pamphlets that stated room rates for five-star hotels should range from US$170 to US$250.

According to the Myanmar Times, he added that the ministry should give clearer guidelines and he was trying to sort out the problem and hoped he would not have to leave the country.

However, the letter from the ministry to Sedona Hotel stated the issue had harmed the reputation of Myanmar and represented a barrier for tourism development.

It stated it would restrict the re-entry of Mr Sarathchandra to Myanmar in the six months from the date on the letter. The letter arrived at the hotel on 23 July.

This action gained private sector support from Myanmar Hoteliers Association. President, U Yan Win said: “People who do not comply with the regulations of the ministry will face action.”

Earlier this year, Sedona Hotel Yangon was identified as one of the foreign-owned hotels that refused to honour contracted rates to travel agents and cancelled them while demanding tour operators accept a much higher rate.

The hotel also refused to take bookings from travel agent for the remainder of the year other than at a much higher rate.

Sourced: ttrweekly