Tour operators are not monopolising industry: SLAITO

By Cheranka Mendis

The Sri Lanka Association of Inbound Tour Operators (SLAITO) dismissed claims that the inbound tour operator market is monopolised by seven operators, hence cutting down the foreign revenue that comes in to the country as alleged by a 17-member tourist driver party.

Responding to claims made by a group of operators who earlier on 22 March disrupted the steady flow of tourist activities by threatening other drivers and pelting stones at tourist buses, SLAITO assured that the body has taken an unanimous decision to not work with the 17 guides in the future and to not partake in any discussions or meetings organised.

SLAITO President Mahen Kariyawasam, backed by former presidents Nilmin Nanayakkara and Chandra Wickramasinghe, noted that the number of Tourist Board approved tour operators has increased to 564 in 2012 from 263 in 2009, contributing to the US$ 1,038 million foreign exchange earned through the tourism industry. 80% of the organised tourists coming in to the country come through SLAITO members, they said.

Kariyawasam stated that the daily earnings from a single tourist has also increased to US$ 103 in 2012 from US$ 76 in 2009. “When analysing the reasons, it is evident that there is no substance in the claims made by the drivers’ instructors,” he said. “Neither our association nor our associated institutes influence the daily wages of an individual or money paid for each kilometre. Also, the said price list agreed on for business transactions is paid either to the driver or to the vehicle owner.”

The real issue is that the group making the allegations are unable to face competition with well experienced, professional drivers and guides and requested the association to charge more money from the tourists and give it back to them. “We cannot behave like this. We are in a competitive market and we won’t be able to compete with other countries if we do so.”

Nanayakkara added that a committee has been set up within the association to evaluate the current trends and global competition and make the membership aware of current price levels. However, this does not by any way put pressure on prices set by the drivers, he assured. “These drivers are unable to compete with well experienced and mentally capable active tourist drivers. This is the reason they endeavour to pull back the forward journey.”

He noted that despite opposition from the 17 drivers, a large number of tourist drivers have invested in new vehicles and reduced the repair cost to face the competitive market. “There is absolutely no opposition from the other drivers.”

Currently, there are 1,300 registered guides in Sri Lanka, of which only 300-400 are active participants in the business.

Kariyawasam added that according to sources, these drivers render their services below the daily wage rate as most hoteliers supply food, beverages at subsided prices or free of charge. “And they also get revenue from tourists in other ways.” He appealed to the tourist drivers to arrive at a kilometre rate or daily wage rate and avoid running at a lower rate. If there was a legally established united drivers’ union, all drivers could join together and agree upon a rate. “If so, we have no right to demand that any driver to render services to us at a lower rate,” Kariyawasam said.

Chandra Wickramasinghe added: “Our members have invested around Rs. 1 billion per annum for the development of this sphere. Members attached to our association are instrumental and responsible to get down not less than 805 tourists to the country.” SLAITO also takes part in key international road shows such as the ones held in UK and Germany and invests close to Rs. 45 million in these as well, he said.

Pic by Upul Abayasekara