Tourism awaits Treasury funding
The tourism industry in future would have to depend on Treasury funding to promote the destination although one-third of the embarkation levy would continue to be passed down to the different state institutions.Tourism Minister John Amaratunga told the Business Times they would have to be careful of their promotional spending since the withdrawal of the Tourism Development Levy (TDL) that would hinder the industry’s lump funding directly to the different state institutions for promotion and development.
The minister said that he had directed the relevant ministry authorities to not release monies from its available funds stating “We have to be very careful with what we have.”On the other hand, he noted that since the embarkation levy had been increased to US$30 the Tourism Ministry would request the government to increase its levy that was previously only US$5 to US$10 that would comprise the one-third they obtain from this airport tax. He pointed out that the tourism sector should get a greater share which is currently under discussion with the relevant authorities.
The minister noted that they would be obtaining different views on the conduct of the promotional work as there was more to showcasing the destination that just advertising.Mr. Amaratunga noted that they would be discussing with the Promotion Bureau board on the way forward.
Meanwhile, ministry officials noted that alternative funding would be sought in line with the development programmes for the tourism industry however,they were yet to be informed of the new methods.It was pointed out that they would be receiving Rs.4 billion from the Treasury for tourism development while the Sri Lanka Tourism Promotion Bureau (SLTPB),
the Sri Lanka Convention Bureau (SLCB) and the Sri Lanka Institute of Tourist Hotel Management (SLITHM) would continue to receive funding from one-third of the embarkation levy as stipulated under the Tourism Act of 2005.Officials point out that the tourism institutes could get additional funding from the Treasury should they continue to produce results.In addition, the training of future professionals for the industry has been proposed with a funding of Rs.100 million allocated in this regard.