Proposed new Tourism Act turns controversial

Sri Lanka Tourism Advisory Committee (SLTAC) President Hiran Cooray speaking to journalists while SLAITO President Thilak Weerasinghe (left) and THASL President M. Shantikumar look on  
 Pic by Waruna Wanniaracchchi 

• Now is not the time for changing Acts, says private sector stakeholder
• Says draft contain contentious areas, such as high immunity to SLTDA and Ministry officials
• Points out that the draft grants SLTDA limitless powers over a large quantum of funds collected from industry
• Tourism Ministry has been so far silent on concerns shared

By Shabiya Ali Ahlam
Private sector stakeholders of the tourism industry raised fresh concerns yesterday on the aggressive push by the regulatory body to bring in a new Tourism Act, which entails sections that are controversial and pave the way for poor transparency.

The amendments would not provide the slowly reviving sector the support needed to bring in the required foreign exchange earnings, a group of industry stakeholders belonging to key tourist associations said.

The players placed on record that they are in no way against amending the current Tourism Act that was enacted in 2005, provided that it is done in a transparent manner and does not become a deterrent in any way to the sector. 
They asserted there are more pressing issues that Sri Lanka Tourism should engage itself with.

“This is not the time for changing an Act. There are much more, much more serious matters that require the attention of the Development Authority and the Promotions Bureau at this point of time,” said Sri Lanka Tourism Advisory Committee (SLTAC) President Hiran Cooray.

The hotelier made these comments at a press meet yesterday where senior representatives of the five key associations came on to a common platform to express their concerns on the amendment that is underway.
“When we are just about to raise our heads again, for us to be arguing and wasting our time and energy on matters like this is not what is needed. If there are issues that are related to the Act that needs polishing up or changing a little bit, we the industry will be very happy to work towards that. But that is not what is happening,” said Cooray.
Despite private sector stakeholders contributing 1 percent of their annual turnover as Tourism Development Levy (TDL), which is used to roll out development and promotional efforts of destination Sri Lanka, the players were kept in the dark about the move to amend the Act.

It was much later when the SLTDA released the first draft of the amended Act and called for proposals to be incorporated. Concerns and proposals were jointly put forward by the stakeholders, which are yet to be acknowledged.

While it was learnt that efforts were underway to fast-track the enactment of the Act, the industry was taken by surprise last week when they received the second draft as a WhatsApp share.  “The draft wasn’t formally shared with us. We saw it only from forwards via WhatApp by industry members who had seen it. What was a shock to us is that beside the proposal for setting up a crisis fund, nothing else was taken onboard,” said The Hotels Association of Sri Lanka President M. Shantikumar. The revised draft has no material change to the first, which entailed sections that give more power and authority to the SLTDA and the Tourism Ministry. The manner in which the Act has been drafted grants the authority limitless powers over a large quantum of funds available at present in the boards, the stakeholders said.

Some of the contentious areas include; providing high immunity for SLTDA and Ministry officials, the merging of the four boards of Sri Lanka Tourism, and the attempt to bring in representatives of smaller, newly formed associations, who do not contribute to the TDL, as board members.

 Although concerns were repeatedly shared regarding amending the Act, the SLTDA had listed out several reasons as to why a change is needed. Some of the reasons include; running four boards is considered ineffective and counterproductive by the SLTDA, having many boards cited as the reason for Sri Lanka not being successfully positioned in the global market, only a small percentage of hotels are represented at THASL (THASL members contribute to over 80 percent of tourism revenue), the industry that has over 3 million people dependent on it cannot be dependent only with the support of few associations, the new associations do not want change as they want to secure board positions, and that the associations have objected to certain proposals on several occasions. The private sector stakeholders shared that they have put forward their concerns with regard to the Act to the Tourism Ministry, which has gone completely silent.

The proposal to amend the Tourism Act, enacted in 2005, was made in Budget 2021. The effort is being funded by the United Nations.