Tug of war over Tourism Act of 2005
Mr. Vasantha Leelananda
The tourism industry is currently witnessing a raging debate on changing the Tourism Act of 2005. The private sector which lobbied very hard to get this Act is of the opinion that the Tourism Act of 2005 should continue while the government authorities are of the view that the tourism institutions should merge and the structure should change.
The tourism industry has gone through a massive change since 2009 and we have seen a rapid growth in the SME sector which covers accommodation providers, destination management companies as well as ancillary service providers. In addition, technology has brought about a paradigm shift in the tourism model with more and more travellers resorting to purchasing holidays online which has marginalized the traditional package holidays.
Whilst the two main travel associations, The Hotels Association of Sri Lanka (THASL) and the Sri Lanka Association of Inbound Tour Operators (SLAITO) have a wide reach and control a significant market share, the SME sector, OTA’s and the online direct bookings also account for an increasing share of the market. It is probably this shift and the need to look after the interests of all segments that is driving the authorities to change the Act. However, it should be done with caution as the tourism industry in Sri Lanka is predominantly private sector-driven.
The private sector has firmly believed in tourism and has invested heavily, while having continuous faith and weathered many adverse situations over a considerable period of time. Understandably they want to be seen, heard and have a say in decision-making. Resilience has been the key and no other business sector in our country has gone through what tourism has experienced. The Tourism Act of 2005 was hailed as an excellent example and a model for private-public sector partnerships, therefore any changes to this must be done with careful consideration and the private sector must continue to have a voice in it.
The composition of the boards can be reviewed to accommodate more sectors and the overall operating structure re-modelled to make it leaner, smarter and more efficient. Having served in three boards at different times I can confidently state that we worked very closely with government officials giving due respect to protocol and procedures.
The Sri Lankan tourism industry can ill-afford a tug of war over the Act. There are bigger and more important priorities that warrant attention. The last two years have been extremely difficult and the industry is battling for survival. Despite the vaccine the outlook for this year still looks bleak and it will take a lot more time for normalcy to prevail.
In the interim the industry needs every assistance since in addition to being an invisible export, currently more than two million of our population directly and indirectly depends on it. Let us not get distracted with the Tourism Act. The need of the hour is for all stakeholders to get together to ensure revival and sustainability of the tourism industry.
(The writer is former Executive Vice President – JKH Group/
Head Destination Management Sector and a past President of SLAITO).