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Sri Lanka to give subsidized credit for homestay providers

Jun 17, 2018 11:47 AM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - Sri Lanka said it is providing subsidized credit to providers of homestay accommodation to tourists, as part of proposals made in the budget for 2018.

Stat-run Bank of Ceylon and People's Bank will provide loans at 14 percent, and the tax payer will fork out 6 percent.

However all homestay providers who apply for subsidized credit will have to register with the authorities.

"Prior registration is not required to apply for these loans," Sri Lanka Tourism Development Authority Director General Upali Ratnayake said.

"Operators can register their properties before commencing commercial operations after renovation and we have also introduced concessionary registration fees to facilitate this process."

Developing the homestay sector is a key priority identified in the three-year Tourism Strategic Plan (TSP).

Homestay providers could call 2,426,800 extension 250 to get information..

"We believe the homestay sector will play a key role in taking the tourism sector to its strategic goals by 2020," Ratnayake said.

"Therefore, we encourage all homestay operators in Sri Lanka to make use of the loan scheme and upgrade their standards."

Homestays are usually listed in booking engines like airbnb.com where a continuous market-based disclosure regulation takes place through user reviews and an algorithm based rating system.

In a capitalist free market system, branding ensures quality and standards, which is a type of merit regulation.

In Sri Lanka a company called Yoho Bed has started to brand alternative accommodation. (Colombo/June16/2018)


 

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