Hard-hit tourism sector needs long-term sustainable solutions from govt.: new THASL chief

• Says industry needs exceptional financial models and new thinking and policy for revival
•  Calls for govt. assistance for survival during the pandemic 
• Disappointed that tourism sector had no spotlight in Budget 2022
• Expresses confidence in sector hitting US$ 1bn revenue mark in coming years

By Shabiya Ali Ahlam
 Although the government continues to place high hopes in the local tourism industry to fetch the much-needed foreign exchange earnings to assist the country’s journey towards revival, the industry asserted the need for relevant authorities to provide long-term sustainable solutions to its problems to ensure effective contribution to the national economy.

The new chief of The Hotels Association of Sri Lanka (THASL) M. Shanthikumar pointed out that despite several representations made to key ministries and government authorities, pleas of the industry had fallen on deaf ears.
However, statements from the government, especially after the Budget 2022, on the expectation from the hard-hit industry to turn around and contribute to revenue generation of the country, stay strong.

“We need the government to look at exceptional financial models for the revival of tourism. It is a known fact that the recovery will be slow but hopefully steady,” said Shanthikumar, addressing the THASL AGM as the new President last week. Reiterating the industry has “never” faced the situation it is in today, even during the 30-year conflict, the veteran hotelier called for new thinking and new policies to be adopted. “The same old models what is on books may not work,” he stressed.

A comprehensive assessment report of the current situation, the future outlook of the industry, and a plan for step-by-step recovery were shared by the THASL with the relevant authorities to be considered in the Budget 2022, however, woes of the industry worsened when it found that the sector, that was one of the top revenue generators for the country until the crisis struck, had no mention in the policy document.

“For the mere survival, there is no doubt hotels require government assistance. We are disappointed and very disturbed to note that tourism was not even considered in the national budget.

“It is an industry in distress needing government support for its survival and revival. It is no secret that tourism is the worst affected industry,” said Shanthikumar.

Furthermore, the new president also drew attention to the government downplaying the contribution of the sector to the national economy.

An analysis carried out by the tourism sector found that if the net foreign exchange is assessed, the industry becomes the second highest foreign exchange earner for the country, surpassing even the apparel sector.
This is due to the consumption of the products in the country itself where the benefits filter down to grass root levels, noted Shanthikumar.

He went on to explain that a tourist arriving in the country not only remits dollars prior to their arrival, but spends a large amount of money inside the country during their stay and the benefits surpass all other export industries.  

“Unfortunately, these figures are not tracked by the central government as tourism revenue. This industry has the potential to achieve US$ 1 billion revenue in the coming years,” said Shanthikumar.