SL to implement tourism revival measures of past terror-struck destinations

• Mangala predicts 30% dip in tourist arrivals and $ 1.5 b revenue loss likely 
• Impact to be minimised with Govt. support to industry and measures to boost safety and security

Finance Minister Mangala Samaraweera yesterday confirmed that the Easter Sunday terror attacks could lead to a 30% drop in tourist arrivals and loss of $ 1.5 billion in earnings, but the Government would aim to minimise the impact by implementing measures taken by destinations which suffered similar fates in the recent past.

“The tourism sector is a major concern as it is our third largest foreign exchange earner. For every 10% drop in our tourist arrivals, we expect a loss of $500 million in tourism earnings. The highest possible drop we forecast is 30%, which a loss of $1.5 billion,” Finance Minister Mangala Samaraweera told journalists yesterday.

However, he said that the Government would extend all support to reduce the impact by implementing measures undertaken by those countries which had suffered similar terror attacks. He listed Egypt, Tunisia and Bali in Indonesia as examples where the impact was bigger as tourists were entirely targeted. 

“These destinations bounced back fast and we will endeavour to do the same,” Samaraweera added. 

Noting tourism was a crucial sector in the economy, Samaraweera said he intended to meet all tourism sector stakeholders upon his return from the Asian Development Bank (ADB) Annual Meeting in Fiji.

“One of my first priorities will be to meet the tourism industry. We will see how we can assist them to overcome this devastating situation as it is a crucial sector and it has to be addressed,” he told the Daily FT.

Finance Ministry Economic Advisor Deshal de Mel said this year’s Budget had already made a number of provisions to support the tourism industry, including removal of Nation Building Tax (NBT), reduction of Economic Service Charge (ESC) and addressing a number of issues related to the formal sector.

“We will definitely see how we can further support the tourism industry going forward,” he added.

The Finance Minister said swift yet bold measures of Government could also turnaround the country’s situation, noting there were many countries that had rebounded faster and better than before.

However, Samaraweera urged the general public to remain calm and united, showing our multi-cultural and multi-religious diversity, leaving no room for any extremist group to engulf our unity.