Dire need for One Professional Tourism Authority

Despite several setbacks, Sri Lanka sees a marginal growth in tourist arrivals.

To truly position and brand Sri Lanka and to ensure the country meets the global traveler’s expectations, it is essential that the Government merge Sri Lanka Tourism Development Authority, The Sri Lanka Tourism Promotion Bureau and The Sri Lanka Convention Bureau in to ‘Sri Lanka Tourism Authority’ and ensure professionals with expertise are on the board. 

The current fragmentation of roles and responsibilities among the four institutions is a key problem 

Tourism Act No. 38/2005 unnecessarily broke tourism in to four separate institutions. This is exactly the opposite of global best practice such as in the Maldives, Dubai, Australia, Thailand and Singapore. As Board of Investments (BOI), EDB and Tourism are inter linked it would be prudent to combine Tourism with Investments, as the ‘Nation Branding’ is equality important for these sectors. 

Government Board represented by only three Associations is an impediment for growth

In the past 30 years, the agenda for Tourism has been dictated to by a few individuals in one or two Associations who use the media, political connections to pursue rather archaic and visionless strategies. The strategy has been marketing on price based i.e., who has the cheapest price, thereby many of them and the dependent stakeholder’s business model have not been sound even in the best years of tourism. This trader mentality, selling cheap, attending exclusively trade shows benefiting a few, has ensured that the Tourism industry is not positioned globally and has and will continue to operate sub optimally. 

What is required is a small group of people including foreign brands with a Vision, who have successfully built brands themselves, social media savvy, and understands branding and positioning globally, to reach the all-important consumer. 

Those who have invested in Tourism in the recent past and those who have the knowledge and passion and commitment to build and position Sri Lanka, where it truly deserves. It is necessary to Merge three of the institutions excluding the hotel school to ensure in line with Global best practice – consecutive governments have tried to do so and failed. Policy makers should not be hoodwinked by a few vocal stakeholders greedy for board chairs. Private sector to be represented by stakeholders and global professionals with Vision and skills to advise government. 

The task to position  outsources to global expertise as done by the Maldives and other countries 

The new act would require more powers to the police, setting up of an Industry Consultative Committee to ensure a voice to all stakeholders and creating a crisis fund and mechanism for social protection in times of crisis. Consolidating the three institutions will facilitate the synergies, efficiencies, cooperative and united approach required across their activities. 
The current Tourism Development Fund provides reliable independent base financing for ongoing activities and for the Tourism Action Plan and other initiatives. The responsibilities, authorities and powers granted under the existing legislation are necessary for a national tourism authority and should not be further fragmented or dissipated among other less concerned ministries and agencies. 

Inter-Ministerial Co-operation 

The need for cooperation, coordination and alignment is very important in a sector like tourism which affects and is affected by almost everything that happens in an economy and society. Currently competing line ministries and authorities make fundamental decisions adversely affecting tourism often without consultation, advice and consideration of the wider impacts and implications (e.g. inappropriate development, highways through national parks, aviation policy etc.). 
There are at least 18 other ministries and 32 related departments that are involved in the tourism sector. There appears to be no effective mechanisms for securing a more effective “whole of government” approach to tourism, for central/provincial cooperation and coordination and for more effective engagement between the public and private sector. 

It is Proposed to create an Inter-Ministerial Council on tourism 

Establishment of an Inter-Ministerial Council is critical as tourism is just one of many competing ministries in the hierarchy of government and does not provide sufficient authority to achieve effective coordination. To be effective it should be chaired by the President or Prime Minister. This Council could mediate major national issues related to building a truly ‘sustainable’ island, address conflicts in land or industry use and large-scale investments that impact the tourism sector. 

It is proposed to sign a MoUs for inter-ministerial / agency consultation and cooperation on tourism

 An effective mechanism for achieving consultation, cooperation and action on key issues is for the Sri ‘Lanka Tourism’ to enter MoUs with the key department in each of the other line ministries and agencies whose jurisdiction affects or is affected by tourism. These include: CAA, CCF, DoA, DoF, DWC, LCG, RDA, SLPA, SLR, Tourist Police and the like. There should be a generic template covering all the matters including communication, meetings, reporting and a tailored action plan highlighting key issues of concern and proposals to address them. In addition, the MoU can address how to retool other agencies to be better geared for tourism. 
National Budget 2021 and Cabinet Decision No. 21/10541/327/021 Approved recommendation to merge the institutions and invalidate the Tourism Act No 38 of 2005 and replace with a new Act to ensure the sustainable development of the Tourism Industry.