Tourism industry cries foul over new draft Act
Sri Lanka’s tourism industry on Friday voiced their opposition over the sudden move by the authorities to change the Tourism Act of 2005 and highlighted that the new draft is likely to remove the private sector from the boards.
At a joint media briefing held at the Ramada Hotel in Colombo the Tourist Hotels Association of Sri Lanka (THASL) and the Sri Lanka Association of Inbound Tour Operators (SLAITO) called on authorities to focus on the present burning issues and not a change of the existing Tourism Act that is unlikely to generate any more tourists than the numbers that are already trickling in.
As an industry that is funding the operations of the separate bodies the private sector is required to be engaged.
The unofficial draft of the new Tourism Act received by the Business Times states that the new Act will vest powers for the Authority to facilitate, plan, promote and implement policy relating to the tourism industry; provide regulation and monitoring and provide protocols for the tourism and travel industry; establish the Sri Lanka Institute of Tourism and Hotel Management and to also repeal the Tourism Act No. 38 of 2005, the Tourist Development Act, No. 14 of 1968 and Part II of the Finance Act No. 25 of 2003. The Authority will consist of the following members appointed by the Minister: The Chairperson, Sri Lanka Tourism; the Director-General; Secretaries to the Ministry of Tourism, Provincial Councils, Cultural Affairs, Environment and Wildlife or a nominee and a representative of the Treasury and Chairman of the Central Cultural Fund. There is no private representation unlike the current practice.
The 2005 Act however, was established with the intention of engaging the private sector participation in the running of the operations of the separate entities of Sri Lanka Tourism Development Authority (SLTDA), the Sri Lanka Tourism Promotion Bureau (SLTPB), the Sri Lanka Convention Bureau (SLCB) and the Sri Lanka Institute of Tourism and Hotel Management (SLITHM).
The draft also calls to establish an Advisory Committee appointed by the Minister that will be represented by the Information and Communication Technology Agency; an expert in global marketing and promotion; three persons to represent the National Industry Council from associations registered with the SLTDA and three representing the Online Travel Agents with a physical presence in Sri Lanka.
The Authority is to maintain a Fund that will obtain finances as voted by Parliament; as obtained by way of donations, gifts or grants from any source; rates, taxes, fees and charges levied by the Authority; all revenue derived from any property vested in or administered by the Authority; revenues from services provided. Another Tourism Development Fund is to be established for the development and promotion of the tourism industry. This fund will accumulate one third of the embarkation levy, 1 per cent charged as the Tourism Development Levy and other money obtained as taxes and other sums of money as may be required. The draft also allows the Authority to use not more than 50 per cent of the money from the Emergency Fund if there had been no tourism crisis for a 12 month period to achieve the objectives of the Authority.
The draft will establish a National Tourism Industry Council comprising the Minister; representatives of each registered association with a term of office of the members for a period of three years. The board of the SLITHM will allow for the representatives from the different associations.
A Dispute Resolution Centre is being proposed in this draft Act that will be able to adopt, rules of procedure for arbitration, conciliation, mediation, adjudication and such other alternative dispute resolution services. The draft also states that regulation is to be made identifying procedures applicable for the procurement of goods and services.