Tuesday Nov 05, 2024
FT
Tuesday Nov 05, 2024
Tuesday, 14 November 2023 00:00 - - {{hitsCtrl.values.hits}}
The 2024 Budget has come under scrutiny as critics perceive it populist agenda that has overlooked the important contribution of tourism to overcome the ongoing crisis.
“Tourism is a key economic driver contributing significantly to a country’s gross domestic production (GDP). However, from the estimated total expenditure of Rs. 7.8 trillion in the 2024 Budget proposal, a scanty Rs. 2.3 billion has been allocated to the tourism industry. This shows the lack of recognition given to tourism and its valuable impact on the overall economy,” Colombo University Department of Economics, Faculty of Art Prof. Suranga Silva told the Daily FT.
The criticism suggests a missed opportunity to harness the full potential of the tourism sector in steering the country toward economic recovery and a green, sustainable future.
“Tourism is a major foreign exchange generating industry and the economic crisis was exacerbated by a lack of foreign reserves. Hence, the Government should have allocated more funds to boost tourism, particularly considering the revenue generating as well as the positive ripple effects it has on the economy,” he added.
Prof. Silva opined the Government should have considered allocating funds for human capital development, new product development, stimulating tourism investments and implementing sustainable development strategies within the tourism sector.
He underscored the absence of comprehensive details regarding sustainable tourism development — a critical component, especially if Sri Lanka aspires to transition to a green economy.
“In advocating for a sustainable and environmentally conscious future, there is a necessity for the Government through the Budget to delve deeper into strategies and funding to support sustainable tourism strategies,” he stressed.
He also highlighted the Budget’s apparent shallow approach to the development of State-run resorts and bungalows, as well as promotional and infrastructure initiatives at the Provincial level.
Industry analysts also reiterated that tourism holds significant importance in a national Budget for its economic contribution, employment, foreign exchange, infrastructure development, revenue generation and diversification of the economy.
“It is a strategic investment that yields returns not only on financial terms but also enhancing the country’s global standing and quality of life for people. Thus, we find that the resources allocated from the Budget 2024 is mere a petty approach to the development of the sector, despite its resilience shown after a series of challenges from 2019,” they added.
