Recognising the vital role of SMEs in Sri Lanka’s tourism sector

The Foreign Ministry of Sri Lanka in collaboration with Sri Lanka Tourism recently hosted a virtual busi-ness to business (B2B) interactive session with the Member states of the Conference on Interaction and Confidence-Building Measures in Asia (CICA) with the aim of enhancing tourism cooperation in the region. 

CICA is a multi-national forum for enhancing cooperation towards promoting peace, security, and sta-bility in Asia. The forum which was focused on the importance and benefits of international collective efforts and collaborative endeavours to create a sustainable tourism sector post pandemic was at-tended by over 100 industry experts from twenty-seven member states. 

Opening remarks for the meeting were made by State Minister of Regional Cooperation Tharaka Bal-asooriya who commended the measures taken by the Government in upholding the economic and social development aspirations of the people despite the challenges faced due to the pandemic. 

Sri Lanka Tourism Promotion Bureau Chairperson Kimarli Fernando made the keynote address, fol-lowed by a comprehensive presentation on Sri Lanka. The presentation covered a variety of topics re-lated to tourism and the measures currently being taken to ensure a faster post-pandemic recovery. 

Presentations were also made by The Sri Lanka Association of Inbound Tour Operators (SLAITO), Asso-ciation for Small & Medium Enterprises in Tourism (ASMET) and The Hotels Association of Sri Lanka (THASL) while the closing remarks were made by Foreign Ministry of Sri Lanka Director General/East Asia Rohana Ambagolla. 

A key component in this strategy for recovery is the SME sector, which makes up nearly 80% of the domestic tourism industry. The Association for Small & Medium Enterprises in Tourism (ASMET) repre-sented this vital sector and acknowledged the Government's efforts to support SMEs at this critical juncture. 

Speaking on behalf of ASMET, at the virtual session, Rohan Abeywikrema elaborated on the challenges faced by the industry. He went on to praise the Government's effort to sustain the industry by imple-menting a series of policy decisions and by incorporating a framework of best practices commensurate with international standards. 

Abeywickrema further praised the commitment by Sri Lanka Tourism to provide the SME sector with a voice and the many measures taken to mitigate the challenges faced by the industry. The support of The Ministry of Finance was also acknowledged as being crucial for sustaining the tourism sector until a full recovery is possible.

SMEs are a vital part of the island’s tourism industry and an engine for economic growth. They are, however, also the most affected demographic due to the prevailing situation. Sri Lanka Tourism con-tinues to work closely with these SMEs, to ensure they survive the current slump and find the fastest possible road to recovery. 

The authorities have spearheaded the process of converting the SME sector from an informal to a formal sector which ensured improved standardisation, modern regulations, and pragmatic policy de-cisions. Additionally, the latest technology has been implemented, including complete automation of the ‘Tourism Service Provider Registration Process’, which now provides 100% online registration.  

“The work we have done towards completely revamping the local tourism sector, ensures visitors are provided with a more authentic island experience and sustainable tourism model. The primary focus at this point is the sector’s speedy recovery and SMEs have a crucial role to play in this transition,” com-mented SL Tourism Chairperson Kimarli Fernando.  The Hotels Association of Sri Lanka President Sanath Ukwatte who spoke at the virtual event echoed similar sentiments and stressed the need for a clear pathway to recovery. He thanked the government for the stimulus measures that have been implemented and noted that developing domestic tourism was vital for sustaining the sector until borders begin to open. 

Following the CICA event, Fernando was recently a panellist at the CIMA CXO Forum 2021 which fo-cused on ‘Navigating the tides of uncertainty’ and explored some of the key issues facing the region while discussing best practices the industry could  follow to mitigate  the challenges. The panellists at the forum discussed the need to adapt to the new normal and the measures that need to be imple-mented for economies to capitalise on the ‘great reset’ taking place globally. 

Given the future requires a more diverse, inclusive, and collaborative approach across political, eco-nomic, and social spheres, Fernando emphasised Sri Lanka Tourisms stance to continue to focus on building an inclusive and sustainable industry with a keen focus on the SME sector. 

The advancements made within the industry during the downtime will enable Sri Lanka to re-emerge as a truly world-class destination that caters to a more high-yielding visitor. While the many stakehold-ers in the industry will have a crucial role to play in this transformation, Sri Lanka Tourism remains fo-cused on continuing to position Sri Lanka as one of the most important leisure destinations in Asia which will no doubt uplift vital revenue streams to the island.