News

Because of problems with our service provider we are changing our
e-mail address to silkroad@celestial.com.kg.
For the time being the infotel address will continue to work - but please amend our entry in your address book.

SILK ROAD LODGE: Prices

We review our prices annually in line with inflation and competitive developments.  In fact, we have managed to maintain prices for a period of two years at a time – changing our prices only twice since the hotel opened in August 2000, (first in 2002 and then in 2004), each time giving two months notice of the change to clients.

As the result of our current review we have decided to make changes some changes in our prices and pricing policy. 

Inflation
Since the hotel opened, the rate of inflation in the Kyrgyz Republic has varied from 2.1% to 6.9% - with an average of just over 4%.   Since the hotel opened in 2000, the cumulative effect of inflation to the end of 2005 is 22%, and as a result the purchasing power of the US dollar/Kyrgyz som has fallen to just 82 cents/tyiyn.

Exchange Rate uncertainties.
Ever since the hotel opened in August 2000, prices in the Silk Road Lodge have been quoted in US Dollars.  The reasons for this are that

• many of our clients are international organizations or
• companies which seek to have a price in an international currency which they can easily understand and compare to prices elsewhere, and
• the fact that a large number of clients pay us by Credit Card and our bankers process credit card transactions in US dollars.

The majority of our guests settle their bills in US dollars.  The majority of our expenses, however, are incurred locally in Kyrgyz Som.  Since the hotel opened in 2000, the value of the US dollar compared to the som has fallen considerably, (by 15%, from 46.9581 som to 39.8536), and if we are to meet our rising costs, whilst maintaining our facilities and level of service, then we need to raise prices accordingly.

When the combined effect of inflation and exchange rate differences are considered, however, then our prices are considerably lower than they were in 2000, even after these price rises will take effect.

As a result of our annual review we have decided to increase our dollar price to the following, (with effect from 01/01/07):

These increases, (of USD10 per room), is an average of 10% on the current prices. 

Switch to Euros as basis of pricing.  
We have now decided, therefore, that as well as introducing price rises to we will change our pricing policy from US dollars to Euro. 

For those clients, however, who wish to be quoted prices in US dollars, or Som, we will be happy to do so, converting at the official exhange rate of the National Bank of the Kyrgyz Republic on the day.

The increases are very modest and amount, on average to an increase from last year’s prices of 10%.   

The result of the annual review mentioned above is to increase our dollar price to the following, with effect from 01/01/07

(The new Euro prices shown to the right are the new dollar prices converted at the exchange rate USD1=EUR1.28 and are the prices that we will apply as from January 1st, 2007.) 

As at present, we will accept payment in either: Euro, US Dollars or Kyrgyz Som, converted at the relevant exchange rate of the National Bank of Kyrgyzstan on the day.

Where requested or required by law, we will continue to quote prices also in dollars and soms but the only change is that we will from now on do so on any day by reference to the Euro values above.  

Clients may pay with banknotes in Euros, USD$ or soms but at present, (due to the banking system), can only pay by credit card in USD$. 

Since the exchange rate may vary from day to day, the relevant exchange rate for the client will be that in force at the time of payment, (usually on the day of check-out), at the relevant Accounting Exchange Rate on that day established by the National Bank of the Kyrgyz Republic.  However, clients who wish to pay by credit card (and will therefore be charged in US dollars as that is currently the only in which the banks can process such transactions), or who wish to pay using US Dollar Travellers’ Cheques or in US Dollars, may choose to pay on the day of arrival.

Where discounts are offered to regular high-volume clients these will continue at the same percentage rate based on the Euro values stated above.

Please contact us if you have any questions.  We look forward to your continued patronage.

Exchange rates and method of payment

Dear Guest,

Prices

Our internal method of accounting uses the Euro as the basis of our prices.  Our prices are displayed in Euro, and bills will be issued in Euro. 

As required by law, however, receipts have to be written in Kyrgyz Som and therefore we convert the sum at the exchange rate established by the National Bank of Kyrgyzstan at the time of payment. 

Also, an official VAT invoice has to be in soms and so we convert the sum from Euro to Kyrgyz som at the exchange rate established by the National Bank of Kyrgyzstan at the time the invoice is issued.

Method of payment

You may pay your bill:

• with banknotes in Euros, US Dollars or Kyrgyz Som, or
• with travellers’ cheques in US dollars, or
• by bank transfer in Euro, US Dollars, (from abroad) or in Kyrgyz Som, (within the Kyrgyz Republic), or
• by credit card (Visa, MasterCard) and American Express, however, our bankers can, (at the moment), only process these transactions in US dollars.

Exchange rates

If you want to pay by credit card or in USD$, then for simplicity and in order to protect you from exchange rate movements, you may wish to pay for your room when you arrive.  This will mean that the room price (in Euros) will be converted at the exchange rate of the National Bank of Kyrgyzstan which applies on that day. 

If you do decide to pay on arrival, and for some reason need to checkout earlier than planned, then we will issue the appropriate refund, converted at the exchange rate of the National Bank of Kyrgyzstan which applies on that day.