Private sector draws fresh battle lines against new Tourism Act

SLAITO President Thilak Weerasinghe (left) addresses the media at Ramada Hotel yesterday on industry concerns over the proposed new Tourism Act. Tourism Advisory Committee Chairman Hiran Cooray and THASL President M. Shanthikumar are also present – Pix by Ruwan Walpola 

• Longstanding tourism and travel associations furious over Govt. not incorporating changes recommended to proposed new Act
• New Act plans to amalgamate regulator SLTDA, promoting arm SLTPB and Sri Lanka Conventions Bureau into one entity
• Industry made joint recommendations and handed over to Tourism Secretary way back in August last year
• Associations allege SL Tourism Chairperson bulldozing her way to pass a new Act replacing the incumbent legislation in force since 2005
• Industry leaders say new Act is not the need of the hour when all must divert energies towards reviving tourism and earn much needed foreign exchange
• Demand private sector recommendations must be included if Govt. insists on a new Act
• Industry fumes over limiting representation of private sector in the Board of new entity as well as judicious use of private sector contribution via Tourism Development Levy

The private sector is drawing fresh battle lines against the new Tourism Act alleging that the current administration is bulldozing its way in a rush after the authorities had failed to incorporate key amendments recommended by the industry.

The Hotels Association of Sri Lanka (THASL) President M. Shanthikumar, Sri Lanka Inbound Tour Operators Association (SLAITO) President Tilak Weerasinghe, the Association of Small and Medium Enterprises in Tourism (ASMET) former President Rohan Abeywickrama, Sri Lanka Association of Professional Conference, Exhibition and Event Organisers (SLAPSEO) President Imran Hassan as well as Tourism Advisory Committee Chairman Hiran Cooray jointly briefed the media about the industry concerns over the modus operandi of the current leadership of SLTDA and SLTPB.

The industry emphasised that it always opposed the changing of the existing Act but given the Government’s stand, it agreed subject to incorporation of recommendations put forward by the private sector. “We jointly made written submissions to the Tourism Minister Prasanna Ranatunga and Secretary S. Hettiarachchi last year. Thereafter there had been no consultation and much to our surprise the final version of the Act is being circulated now without incorporating our recommendations,” they alleged. The industry implied it was an act of highhandedness and the Sri Lanka Tourism Chairperson Kimarli Fernando bulldozing her way with no respect to inputs from the private sector which is the real stakeholder having invested billions, employing thousands paying taxes and attracting tourists and foreign exchange, they pointed out.

Some of the contentious issues over the proposed Act is greater emphasis on non-tourism stakeholders in the composition of the Board of Directors and alienating the long-standing representation by industry associations. They also said that the Sri Lanka Tourism Chairperson has been rallying support to further her agenda by encouraging formation of various smaller associations and trying to portray that the tourism industry is divided or there are efforts to create disunity when SLTDA and SLTPB must foster greater solidarity within the industry especially when it is going through in an unprecedented crisis.

“Whilst we acknowledge that the interest of various suppliers to tourism must be recognised and supported, Sri Lanka Tourism cannot side-line or ignore the core of the industry represented through long standing associations,” they pointed out.

The private sector is also concerned whether the new arrangement will ensure judicious use of funds contributed by the industry by way of the Tourism Development Levy of 1% on turnover. The new proposed entity has been granted super powers with greater immunity as well as less oversight on transactions relating to land.

The Association heads also implied rushing the new Act is more to do with furthering an individual’s interest than a political agenda. Allegations of conflict of interest were also highlighted during the briefing to the media.

Whilst the industry is confident that saner counsel will prevail and that the Government and the Minister will heed to private sector concerns, the tourism association leaders emphasised that the need of the hour was not debating a new Act or trying to secure super powers to the state agencies but immediate revival of tourism which has been impacted most following the 2019 Easter Sunday attack and the COVID-19 pandemic.

“We need to focus all our energies to increase tourist arrivals as tourism can play a significant role in boosting much needed foreign exchange,” the industry leaders stressed. “Failure to do this and preoccupation with a new Act reflects mixed up priorities. Ultimately the tourism sector will miss the revival opportunity,” they added.

Rohan Abeywickrama

Imran Hassan

Angeline Ondaatjie

Nilmin Nanayakkara

Asoka Hettigoda

Nalin Jayasundera

Mahen Kariyawasan