• NATA decision could severely impact foreign and local tourism, THASL warns
• Hoteliers argue that happy hour promotions are a global standard
• Industry leaders question timing and enforcement of 18-year-old law
• Hotels continue to offer happy hour deals despite letters from NATA

Hoteliers warn that they will take legal action if the National Authority on Tobacco and Alcohol (NATA) does not revoke its much-publicised recent decision demanding that hotels stop all happy hour promotions.

Speaking to The Sunday Morning Business, The Hotels Association of Sri Lanka (THASL) President M. Shanthikumar stated that happy hour promotions were not unique to Sri Lanka and were arrangements relied on by hoteliers around the globe to bring customers into their establishments. 

He further warned that this arbitrary decision by NATA could have severe repercussions for both foreign and local tourism. Accordingly, he revealed that THASL was looking at taking legal action against NATA if it did not withdraw its decision. 

Commenting further, Shanthikumar claimed that this arbitrary decision by NATA could severely impact the tourism industry, which had proved vital in pulling Sri Lanka out of the economic crisis it faced in 2022.

“Happy hour promotions have been practised for the last 50 years. This is not unique to Sri Lanka. They are practised all over the world in hotels and restaurants, where happy hour is a common scheme used to attract customers. 

“NATA is commenting on a law enacted 18 years ago in 2006 and is now relying on Section 37(2) of the NATA Act No.27 of 2006. Where were they all this time? Were they sleeping? Suddenly they have woken up and are now trying to kill the goose that is laying the golden eggs, which is tourism – the only industry to have brought in so much foreign exchange during the economic crisis,” he stated.

Speaking to The Sunday Morning Business previously, Shanthikumar revealed that although several hotels had received letters from NATA requesting the discontinuation of happy hour promotions, the industry had decided to continue with the promotions.

Section 37(2) of the NATA Act No. 27 of 2006 provides that “a person shall not offer any prize, gift, cash rebate, discount, or the right to participate in any contest, lottery, or game to the purchaser of a tobacco product or alcohol product in consideration of the purchase of that product or to any person in consideration of the furnishing of evidence of such purchase”.