Financial Times

Japan funds major tourism redevelopment plan
Japan plans to fund a major tourism redevelopment project aimed at increasing the share of high spending tourists from Japan and Asia while widening the market to cultural and environmental attractions apart from the usual sun-and-sand endorsement.

Shinya Ejima, Chief Representative of the Japan Bank for International Cooperation (JBIC), told The Sunday Times FT that Japan had turned down a government request to develop Sri Lanka's west coast and instead is implementing a project intended to ensure local communities benefit from tourism particularly in areas of cultural interest.

"This is the first time the government (former UNP administration at that time) has approached Japan to fund a tourism project. The original request was targeting west coast beach resorts. While we believe tourism is important, it is far better to use our taxpayers money to develop more attractive areas for the Japanese and other Asians," he said.

Ejima said while the majority of tourists are Europeans with a few Japanese or Asians, they (Japan) suggest that the government pay a lot of attention in attracting tourists from the East. "This country has a Buddhist heritage and an ancient culture.

This should attract Japanese and others from Asia. Frankly speaking the spending per capita of the Japanese is much higher than the Europeans. The length of stay of the Japanese may be shorter but they spend much, much more." JBIC emphasized a change in market strategy - not a total shift in the market, Ejima said adding that while Europe is still an important market, there is a lot of potential from Asia.

The Japanese government is also keen to ensure that tourism should involve and develop local communities, a point illustrated by a South African business personality who was here last week with the South African business peace delegation to share their experiences of how the business community there, is driving the peace process.

Developing and enriching rural communities in tourism development has also been one of the key development themes of the Japanese ambassador in various public presentations.

The Japanese funded Tourism Resources Improvement Project (TRIP) study began in November 1. It is to facilitate more active tourism exchanges with Japan as well as Asian countries to enhance inter-regional cultural and socio-economic activities, attain socio-economic development and stability to contribute to peace building, and achieve local community development with economic prosperity.

The TRIP study will focus on among other things-the improvement of essential infrastructure and facilities and environmental conservation with the target areas being Anuradhapura, Sigiriya (cultural heritage), Nuwara Eliya (hill country), and Negombo (coast). The TRIP study continues until February 2005 and the final report will be submitted to the Sri Lankan government in early March. Based on the TRIP study, Japanese ODA loan assistance through JBIC is expected in the second half of 2005, JBIC said in a statement.

Asked for the level of assistance, Ejima said it may start from as small as US$10 million to US$15 million for a larger project. He said the government was keen to develop the east coast which may be the second phase of this project depending however on peace and normalisation.

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