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I know this is a topic that comes on and off. I just wanted to share my recent experiences in regards to rates. I usually visit Sri Lanka every year or so and from SL. After visiting several hotels I am quite amazed by the rates. I was told many reasons as to why the rates are so high, none of which makes any sense to me.
War is over so rates are higher! I think safe environment is something that everyone expect. It is a basic need. In other words this translates to that 3 years ago rates were cheaper because you could have gotten killed while on vacation, so here is a discount for ya.
You cannot charge a higher rate because country is peaceful as it is a basic need. The 2nd reason is there is an influx of tourists, it is a basic principal of supply and demand. Is this really true?
How many of these " so called tourists" are ex-Sri Lankans with citizenship from other European countries who visited Sri Lanka on 30 day tourist visa?
When I visited the hotels I didn't see full hotels. Early check ins, no lines, and staff is just waiting around. Some were busy only due to weddings. People are converting their houses to hotels wanting a piece of the pie. Just because you add some new bathroom fittings and change the decor you cannot call your house a 5 star boutique hotel or provide least facilities and called it a eco Hotel?