By Jithendra Antonio
Aitken Spence is planning to develop 100 acres of beach front property in Nilaveli, with the aim of harnessing the property’s maximum value, the recent financials of the company outlines.
In April 2011, the Aitken Spence Group had also acquired the ownership of Hilltop Hotel, Kandy in which previously the Group had a minority stake.
Company’s Deputy Chairman and Managing Director J.M.S. Brito in his review further notes that while the expected tourism boom had become a reality in financial year 2010/11, Aitken Spence had been fortunate to fully refurbish its leisure properties to take advantage of substantial growth. “The three showpiece Heritance properties in particular performed exceptionally well, maintaining above average occupancies throughout the year.” Brito noted in his review.
The Group’s resort portfolio will be expanded in the short term through several new expansions; Heritance Ayurveda Mahagedara will be opened next month, while construction has begun on the Six Senses property in Ahungalle, which is to be launched in 2013.
The Golden Sun Resort Kalutara which is now closed for refurbishment until December 2011 will see the resort being uplifted to a four-star property. According to Brito, construction of additional 100 rooms will commence in mid 2011 to increase the total room inventory of this property to 200.
“Browns Beach Hotel, Negombo is currently being demolished with plans afoot for a brand new 200-room luxury resort.” Brito states in his review adding that in a bid to cater to the high-end MICE (meetings, incentives, conferences & exhibitions) segment, a state-of-the-art conference hall will be constructed during the year over the Dambulla wing of Heritance Kandalama.
He stressed that the destination management business had remained robust while the segment was somewhat affected by the increase in local hotel rates.
“It is more beneficial to the industry in the long term that room rates are governed by supply and demand – as in competitor markets in the region - and not regulated by government authorities.” Brito noted adding that during the year, the industry also faced some uncertainty from the now-delayed proposal to suspend the visa-on-arrival facility for tourists, and it is hoped that the eventual decision will be beneficial to the country.
Commenting on the performance of the Maldivian resorts of the company, he said that even though they are very much concerned about the current political developments in the Maldives, they are hopeful that things would turn around for the good.
Pension concerns
Deputy Chairman of Aitken Spence J.M.S. Brito in his review of the recently published financials stressed that the employees of the Group have shown anxiety and apprehension regarding the proposed private sector pension scheme. “ It is hoped that the government would address the issues and concerns raised by the private sector regarding the proposed private sector pension scheme prior to its implementation” he said adding further discussion and thought would need to be given to the economic and financial viability including the sustainability of the scheme for the future.
source - www.dailymirror.lk
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