Concern over sudden cancellation of bidding for new tourism marketing push

• Seven shortlisted advertising agencies dismayed over eleventh-hour notice; bids were to be submitted on Monday
• Industry analysts claim setback to credibility as process was transparent and delay impacts much needed professional destination marketing drive
• Tourism Minister Amaratunga dismisses allegations; says process not abandoned but suspension was to revisit the exercise and ensure better process and inclusivity
• New Tourism Advisory Committee to oversee fresh exercise

By Shehana Dain

The advertising industry yesterday expressed concern over the sudden cancellation of the bid for a new tourism marketing campaign but Minister John Amaratunga justified the move by saying that it was to ensure due process.

The process to find a suitable advertising and marketing communication agency was to reach a crucial stage yesterday with the submission of bids by the seven shortlisted parties. However, on Friday night all of them were notified that the process had been suspended. The announcement sent shockwaves through the advertising community and disturbed the tourism industry. As per the original timeline, the contract was to be awarded to the successful agency by early November.

The seven ad agencies shortlisted were Saatchi and Saatchi, Lowe LDB Ltd., Grant McCann Ericson, Phoenix O&M Ltd., Leo Burnett Solutions Inc, Bates Strategic Alliance and Thompson Associates Ceylon Ltd. However, Tourism and Christian Affairs Minister John Amaratunga told the Daily FT that the bids were not called off, but the exercise was temporarily suspended for further evaluation and the process would be completed before the end of the year.

He said that the move was taken due to the recent dissolution of Boards of the Tourism Development Authority and Promotion Bureau for a fresh round of appointments.

“The evaluation is under process where the pros and cons are being considered by the experts to assess how beneficial it is. Once we finalise it, we will go ahead with it. The process that was initiated by the previous administration had a lot of allegations against it so we have to make sure that every cent will be spent cautiously because it’s a big multibillion project,” the minister explained.

According to the minister, a high-powered Advisory Committee to be appointed will get involved in the new process as well.

Amaratunga also said that the new process would receive fresh submissions and bids as one allegation was that some were left out or not given due consideration.

However, an advertising industry sources who were closely monitoring the bid process told the Daily FT that the procedure was transparent and met standard bidding regulations.

 “The members of the Ministry Consultancy Procurement Committee appointed for the bidding process were all experts. The minister’s allegations are baseless because all acts regarding the bidding process were transparent,” they claimed.

Tourism industry analysts noted that the cancellation had resulted in serious loss of credibility and delay in finalising the contract would be a further setback to much-needed professional destination marketing for Sri Lanka.

“Halting the bidding process on such short notice gives a completely adverse vibe to the world about the Sri Lankan tourism landscape and its authorities. After six years the initiative was coming to life and the authorities have pulled the plug,” the sources added.

According to them, the bidders were certainly not happy about this. All seven agencies that were selected are globally reputed companies. They have spent considerable amounts in preparation for the bidding.

Previously, the marketing plan was approved by industry bodies such as the Tourist Hotels Association and Inbound Tour Operators so that the industry was well aware of the procedure.

The members of the Tender Evaluation Committee (TEC) appointed for the bid process were all experts too hence the minister’s allegations are baseless because all acts regarding the bid process were transparent.

As per the procedure followed, the final decision had to be ratified by the Tourism Ministry or, if necessary, at the Prime Ministerial level.

Sources also said Expression of Interests was open and transparent and all in the advertising industry had the chance, including during the stage of Request for Proposals.

“When the request for proposal (RFP) was issued everyone was given a two-week window to write about any of their disagreements and complaints. That’s a standard course of action, and no complaint was made in this regard,” sources from both the tourism and advertising industries said.

Another factor they pondered on was that by any means if the bid process was cancelled or other agencies are brought into the system, proposals should go to the TEC committee. Parties also had the opportunity of bringing the matter specifically to the notice of the Chairman of the TEC, a position held by Tourism Ministry Additional Secretary.