Kapruka Investor Forum ends successfully – The Island

By Hiran H. Senewiratne

Leading travel and tourism industry experts Anura Lokuhetty and Nilmin Nanayakkara, both with over 40 years of industry experience, have raged over the proposed new tourism law, which completely divorces private sector involvement in the industry.

The two specialists declared with one voice to “The Island Financial Review” that, firstly, it is not the moment to bring a law on tourism and secondly, it was not necessary to bring a new law. “It hurts the whole industry. It dilutes the importance of the private sector, which contributes over 90% to the industry, they said.

Lokuhetty, the former President of the Tourist Hotel Association of Sri Lanka (THASL), recalled that the Tourism Act was first introduced in 1968 and then a new one was introduced in 1978. It created four separate bodies overseeing Tourism Promotion Regulation (SLTBP) (SLTDA) HR Training (SLITHM) and MICE (SLTCB).

Lokuhetty added, “The private sector plays a 99% role in the industry and has invested billions of rupees to build hotels, maintain them and employ over 600,000 people.

“The industry brings in about $4.5 billion a year (before the Covid-19 era), making it the third-largest foreign exchange earner, contributing 12.6% to GDP and there are about 2 million industry dependents.

“Unlike other countries, travel industry players in Sri Lanka did not lay off staff even when hotels were closed during the Covid-19 and Easter Sunday attacks, bearing this financial burden as well.

“In addition, we also pay 1% of our turnover and not profit to the government (in addition to other taxes) as tourism development tax which is used for promotions and other matters.

“Today there are over 38,000 rooms and 50,000 other accommodation providers, including home stays, in the sector. Under current tourism law, the private sector is very well represented in these four bodies creating a “good mix” and when key decisions are taken, the “voice” of the private sector is represented.

“Under the proposed law, a body will be created removing three of the institutions (apart from SLITHM), which will weaken the power of the private sector in decision-making in key areas, such as the allocation of land (tourism is of great importance) land bank spread all over Sri Lanka), providing budgets for promotions, overseas tours and other key areas and there would be no real system of “checking and balancing.” Another area is the maintenance and deployment of the TDL fund which is now worth billions.

“The law is also going to be passed in a big rush and it also raises suspicions about the good faith of passing such a law. not been requested either.

“If Sri Lanka Tourism wants to make changes, they can always make amendments and not a completely new law, also not at a time when hoteliers face the greatest threat to their survival.

“Arrivals have plummeted due to Covid -19 and hoteliers are facing power cuts, lack of diesel and gas as well as soaring commodity prices and other issues and overwhelm them with a new law does not “adapt” well at the moment.”

Meanwhile, an official from the Ministry of Tourism who was contacted said the industry would only benefit from adopting a new tourism law as it would speed up decision-making and lead to the betterment of the industry. “Today we have to maintain and coordinate four bodies and obviously when they are reduced to two there are advantages. Yet there would be representation from the private sector and already more than 70 tourist associations have approved it and are waiting looking forward to its implementation to reap the benefits, he said.

The official added: “It is the big hoteliers in tourism who are opposed to this because they are the only ones to take advantage of the industry and do not want the “small players” to propose and get involved in the decision-making process. We have also had a series of discussions with several bodies and also secured Cabinet approval for this new law which will also help to increase industry revenue benefits among small timekeepers.

Meanwhile, Nilmin Nanayakkara, former president of the Sri Lanka Association of Inbound Tour Operators (SLAITO), said the so-called more than 70 associations which Sri Lanka Tourism says support the industry had never even heard about four years ago and suddenly came into being. at the top. “The main associations are SLAITO, THASL and ASMET (representing the SME sector) and all of them are against the law. The current four tourism bodies are not burdens but assets that work to improve tourism because the professionals are in them and they provide valuable inputs to the industry that are highly respected.