Travellers are going nowhere
Sri Lanka’s tourism industry faces a bleak future as they try to work out proposals like providing insurance covers to remain attractive though they know very well no holidays are on the cards for long haul visitors and nothing is moving until September next year.
Regulations in European markets are today becoming stringent and the local industry is aiming at providing insurance cover to assure tourists of the health care in Sri Lanka, Connaissance de Ceylan Chairman Chandra Wickremesinghe said on Wednesday.
He noted, “things are much more complicated than we think” adding that the Health Ministry guidelines to carry out checks repeatedly would not be encouraging.
“We are just getting the two months’ loans for the May and June salaries,” he explained adding that they were currently paying staff only half their salaries while with an employee strength of 700 retrenchment is also on the cards going forward.
He pointed out that the domestic market is selling on lower rates and in this respect, “I don’t think anybody can even break even on those rates.”
Nkar Travels Managing Director Nilmin Nanayakkara speaking with the Business Times said, “In my view even if there is a vaccine found by January or February business will not re-start this side of September or October.”
His organisation plans to stay on in the business until it gets revived and as such proposed that “every small operator who some say to close down must find ways and means to survive and stay in touch with the principle operator.” Pay cuts and staff retrenchments are inevitable, he said.
“I don’t think any kind of tourist will give us any business. We need to wait,” he said.
The only ones to stem the tide would be those that would be able to obtain business from handling ship crew changes and those operating hotels as quarantine centres as well, he noted.
Meanwhile, Suresh Mendis formerly of Classic Travels spoke to Business Times recently and stated that all in the travel industry have cut costs by about two thirds or more, salaries by about 50 per cent and this situation is likely to continue for nearly eight months.
“Right now the people are really struggling and some of the smaller companies are folding up,” he said explaining that this situation was faced by those who would not want to use their own money to pay staff.
While the corporates will fund salaries until about six months it has been a tough call as salaries itself amount to about 70-80 per cent of the cost.
Mr. Mendis pointed out that though some of the inbound tour companies received loans however the outbound sector that comprise about 300 have faced the flak.
The group travels are likely to slow down “drastically,” he said.
Some of the European markets are likely to face more job cuts as the time period by their governments to support the people would complete their cycle.
And in terms of other markets even the West Asian markets (labour traffic) are not performing well and as a result are unlikely to see many travellers.