Tourists have no business in doing business

• Stakeholders confirm increasing trend of tourists engaging in businesses
• Say issue has been brewing for nearly two years
• Point out such establishments have spread from South to other regions, impacting livelihoods of people dependent on tourism
• Assert such establishments make environment uncompetitive

The tourism sector stakeholders yesterday confirmed that Sri Lanka is witnessing an increasing trend of international visitors engaging in business activities and warned that the industry, in certain parts of the country, is impacted as a result. 

Speaking to Mirror Business, the stakeholders representing two of the largest tourism associations asserted that the island nation has been facing this issue for nearly two years. 

The industry had alerted the relevant authorities regarding a section of tourists arriving in the country for long stays, carrying out business activities, without proper registrations. 

The Sri Lanka Association of Inbound Tour Operators (SLAITO) shared that the majority of these tourist-run businesses started off small but have grown considerably over time. 

“We have been talking about this to the authorities as early as 2022. We saw this situation brewing in the South but now it has spread to other areas as well. 

These people come in and start by renting a space. Then they operate as destination management companies (DMCs), bringing their guests into Sri Lanka. They even carry out money exchange services,” SLAITO President Nishard Wijetunge said.   

He pointed out that there are no controls and Sri Lanka not having in place proper monitoring mechanisms makes it difficult to assess and handle the situation.  

The SLAITO representative pointed out that due to these businesses, the livelihoods of the locals in these regions, who depend on tourism, are negatively impacted. 

“It affects not only us. It affects the hoteliers and restaurants, as well as there is no level playing field. It is the same problem that we (DMCs) have as well.  

The Hotels Association of Sri Lanka (THASL) also reflected similar sentiments and urged the authorities to tackle the situation before it gets out of hand.  

According to THASL President M. Shanthikumar, the tourists engaging in unregistered businesses have created an uncompetitive environment, especially for the small and medium enterprise segment. 

“Our membership and businesses registered with the Sri Lanka Tourism Development Authority pay taxes and other charges. These businesses don’t. Therefore, they can offer their products and services at a much lower rate, which will certainly pull tourists towards their establishments. This is the ground reality,” said Shanthikumar. 

He asserted that the tourists should respect and follow the laws of the country and not get involved in activities that would hamper the livelihoods of those engaged in the sector.