Keen on Kalpitiya

Proposals flood in from leisure sector for 12 remaining islands

By Cheranka Mendis

All proposals for land leasing in the Kalpitiya development zone have received high demand from those in the leisure sector, a Tourism Authority official said yesterday.

Kalpitiya, a popular tourist hub, showed interest in leasing out land in 14 islands around the area in a proposed tourism development plan by the Sri Lanka Tourism Development Authority.

In the initial bid, which put up five islands for grabs, only two islands – Ippantivu and Vellai – were awarded to potential investors. The two islands were given to Qube Lanka Leisure Pvt. Ltd. and Lets Travel Pvt. Ltd. respectively, for a total investment of Rs. 2,900 million. The official stated that proposals were received for only two of the five islands that were initially put up for the bid.

However, the proposals that were called for the remaining 12 islands have received a large number of entries and the Technical Evaluation Committee appointed by the former Secretary of the Ministry of Tourism will have a lot on their hands this time, he said.

“The bid submission for the Integrated Kalpitiya Development Project was called on 3 November and will remain open till the first week of December. But what is interesting is that we have received a large number of proposals this time around, just two weeks after the islands being opened for leasing.”

All proposals received have been on joint venture schemes and include a lot of newcomers to the tourism and leisure industry.

“There are many new names that have put in proposals. This shows that Sri Lanka tourism is on a roll and that its importance has spread far and wide across the globe. Many local companies too have given in proposals but due to the large investment that is on the other end, almost all are proposed as joint ventures.”

If and when all 14 islands, which extend over a land area of 167,267 hectares, are put to good use and hotels built, the authorities expect them to generate direct employment to 15,000 persons in and around the area. Another 22,500 employment opportunities would be created indirectly. The number of hotel rooms expected to be constructed stands at 4,500, the official said.

The development in the area would also include marine based activities such as scuba diving and snorkelling on Bar Reef, whale watching in offshore areas beyond 20 km from Bar Reef Marine Sanctuary (BRMS), dolphin watching within the BRMS and in Dutch and Portugal Bays, bird watching in the entire area, mangrove tours, deep sea angling and fishing, wind surfing, kite boarding, canoeing and kayaking, which would enhance tourism potential.

Both water-based recreational and fisheries activities should be controlled, obtaining the advice of relevant specialists. Special golf courses and diving resorts will be built to offer unique opportunities for the travellers. Investment opportunities available at the proposed tourism area include luxury accommodation units to attract up-market tourists such as hotels, chalets, water bungalows, ayurvedic hotels, beach cabanas, sun huts, outdoor barbeque pits, and open air performance areas. Low cost accommodation units for budget travellers are also encouraged.

The official claimed that investment opportunities were also open for domestic airport and travel, amusement parks, high speed boat safaris, observation towers, agro and livestock farms as well as hot air balloon transport.

However, the proposed Underwater Visitors Centre which has been graphically identified by the Sri Lanka Tourism Development Authority has still not been put out to bid. The centre, which would offer excellent opportunities for both domestic and international tourists to study marine biology around the area, is a special project and would need separate attention, he said. Bids for the centre may probably be called for early next year, he noted.