Tour operators face crisis
View(s):Destination Marketing Companies (DMCs) or tour operators who form the link between Sri Lanka and the prospective tourist are facing a crisis with some on the verge of winding up operations in the aftermath of the toll that the COVID-19 pandemic has taken.
Inbound Tour Operators Association President Mahen Kariyawasam told the Business Times on Wednesday that the state has to realize the importance of the DMCs and today if the industry does not receive any incentives from the government then “we will have to lay off at least 50 per cent staff.”
With no help from the government some DMCs might wind up, he noted adding that they had sent repeated reminders to the relevant authorities requesting them to consider their plight and assist in paying staff salaries at least for the next six months, to be repaid in three years.
DMCs have a direct workforce of 3600 from about 120 companies that form the membership of the SLAITO and these workers will be compelled to stay at home for now upto the next three to four months, Mr. Kariyawasam explained.
“By the looks of it we will have to go for staff cuts,” he noted adding that they had requested the government for an interest free loan to pay salaries totaling Rs.150 billion for tour operators.
The general circular sent out by the Central Bank doesn’t target the specific sectors, he pointed out noting that currently their cashflows are low.