No new tourism-related taxes in 2017 Budget, Tourism Minister says
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John Amaratunga
The Government is setting up a cabinet sub-committee to fast-track decisions pertaining to tourism while assuring the industry that no new tourism-related taxes will emerge in next month’s budget.
This assurance was given by Tourism Minister John Amaratunga amidst applause by hoteliers attending the 51st anniversary and AGM of the Tourist Hotels Association of Sri Lanka (THASL) at the Cinnamon Grand in Colombo on Tuesday.
The Minister whose speech was laced with jokes, a little bit of entertainment and serious stuff, told the audience that the government envisaged raising the industry to becoming the biggest forex earner by 2020 from a current third position behind migrant remittances and garments.
On taxes, he said he had a discussion with the Finance Minister who “promised not to impose any further taxes on tourism”.
On the contentious removal of the minimum room rates structure by March 2017 in which opinion is divided, Mr. Amaratunga noted that after a decision was taken to scrap this scheme there has been many requests to reconsider the decision.
“After a lot of (post-decision) consultations I find it is too quick to arrive at such a decision… and I think we should give two more years till the industry is established to resort to this move,” he said, adding however that in his view market forces should be allowed to determine room rates at least in the not too distant future.
“The ministry is only a regulator and a facilitator. We cannot take arbitrary decisions, we have to listen to the industry,” he said explaining the decision to reconsider removal of minimum room rates.
On the long-awaited destination marketing campaign, he said while they are trying to get it off the ground, there were too many regulations and constraints that was impeding progress on this front.
“There are too many ARs and FRs (government rules). However the government is determined to have a strong cabinet sub-committee that will give expeditious decisions on matters relating to hotel industry,” he said.,
He also referred to a World Bank funding for training in the hotel industry but pointed out that hoteliers should come up with their own programme as inhouse training is better than in the classroom.
While referring to the mega French agents association conference taking place next month, he said another bonus is a conference of 200-300 Cardinals and Bishops from South East Asia meeting in Colombo.
Sanath Ukwatte, Chairman of Mount Lavinia Hotel Group and who campaigned against the removal of the minimum room rates, said that Sri Lanka should not be perceived as a cheap destination. “Why should we be cheap to drive numbers?” he asked.
Mr. Ukwatte, who took over as new president of the association from Jetwing’s Hiran Cooray, urged the association’s 205 member-hotels to support travel agents and local DMCs against online booking operators.