Tourism industry congratulates President Dissanayake, seeks urgent reforms to boost sector growth

President Anura Kumara Dissanayake

THASL President M. Shanthikumar

SLAITO President Nishad Wijetunga

• Calls on President to intervene and have ETA system re-activated without further delay, roll out global promotional campaign as scheduled to reach full potential of winter season
• Extends fullest cooperation to President and new Govt. to develop country to achieve inclusive growth

The Hotels Association of Sri Lanka (THASL) and The Sri Lanka Association of Inbound Tour Operators (SLAITO) being the two apex industry bodies representing the inbound tourism sector and the formal hotel sector yesterday congratulated President Anura Kumara Dissanayake on being elected as the 9th Executive President of the Democratic Socialist Republic of Sri Lanka.

“We wish President Dissanayake the very best in leading our country and assure him of the fullest support to take the country forward to the next level,” they noted via a statement.

Tourism is the number one net foreign exchange earner for the country, with 100% of the foreign exchange retained in the local economy. 

It is also the only industry with an instant multiplier effect of the tourism dollar that is brought in by the tour operators and hoteliers. The ‘trickle-down effect’ of the tourism dollar, right down to the smallest of stakeholders and suppliers to the industry, is another exclusive feature of this industry. It also supports the large informal sector, such as restaurants and home stay units operated by the micro level stakeholders. 

Tourism boasts the potential to grow to a $ 10 billion industry by 2030. Being a 100% private sector driven industry, we are confident that with the support and facilitation by your Government we can reach the target. The private sector stakeholders’ investment in the hotel sector exceeds $ 20 billion. The inbound tour operators are responsible for bringing in around 65% of tourists to the island with an annual investment of over Rs. 3 billion spent by inbound agents and hotels in promoting the destination overseas. Direct and indirect employment in tourism exceeds 500,000 with over 70% being in the accommodation sector. It is estimated that over 10% of the country’s population benefits, from the Tourism industry.

 The formal sector stakeholders in tourism contribute 1% of their total turnover, to the Tourism Development Fund (TDL) which in turn is used for promotion as well for running all of the public sector tourism institutions. This contribution from the private sector ensures there is no burden on the treasury to run the tourism establishment or for promoting tourism overseas. 

They noted that the tourism industry is a very sensitive industry as it is prone to internal and external shocks. Any one of these can jeopardise the growth of the industry almost instantly. Therefore, the industry stated that they are pleased to learn of your plan to place tourism as a high priority industry which would no doubt help the private sector develop the industry to the next level, with confidence.

“We have identified two issues affecting the growth of the industry at this moment which can very easily be fixed. The present drop in tourist arrivals and the drop in forward bookings can be directly attributed to the lack of an online visa platform and the lack of a meaningful promotional campaign,” they pointed out. 

The industry elaborated that a change was made in the entry visa processing system, on 17 April 2024, without any prior warning which made the process complicated and expensive. It is further impacted due to the failure on the part of the Controller General of Immigration to carry out a Supreme Court order, issued on 2 August, to re-activate the ETA system that was operational prior to 16 April. The ETA system that was in operation was hailed as one of the best and simplest of online systems in this part of the world. 

They also said a promotional campaign was set to be launched in early September 2024. “September being the peak booking season for the forthcoming winter tourist season, it would be ideal if this campaign is rolled out and carried through,” the stakeholders stressed. 

“We earnestly request the President to intervene and have the ETA system re-activated without any further delay, and ensure the rolling out of the promotional campaign which will increase awareness about the destination. Both actions will help reach the full potential of the tourist season in the coming months,” they urged.

The two main associations — THASL and SLAITO affirmed their commitment to support the President and his Government in developing the country and achieving an inclusive growth as per new administration’s aspirations. “We are confident; this can be achieved through developing a vibrant tourism industry that includes all stakeholders large and small,” they asserted.