Financial Times

Two competitors speaking together and being committed to one common cause is a very rare event that one might come across these days. Such a thing happened last week at the monthly meeting of the Sunday Times Business Club when two prominent personalities from Sri Lanka's Tourism Industry spoke – with one voice – to the members about "Promoting Tourism in a Challenging Environment".

Hiran Cooray, President of the Tourist Hotels Association of Sri Lanka and Managing Director of Jetwing Hotels and Abbas Esufally, head of the leisure sector of the Hemas Group and Chairman of Serendib Hotels, were the speakers at the meeting. The main focus of the presentation was on the difficulties faced by those involved in the tourism industry to keep the industry alive in the wake of the current situation in the country and the resilience the industry has shown through difficult times.

Esufally said, "The Private Sector has had tremendous faith in the sector despite the difficulties the industry has faced". This fact is much evident considering the investments made in the industry by Sri Lanka's leading corporates such as John Keells Holdings, Aitken Spence, Hayleys, Hemas Holdings, MJF Group, Jetwing, Hirdaramani Group, etc…. Despite the ethnic strife and the fluctuations of the Sri Lankan tourism industry, the private sector has continued to invest and upgrade the tourism industry to higher standards. This indeed is a reflection of the faith that the private sector has in the tourism industry and most importantly the potential of the industry in Sri Lanka."

He noted that tourism is the 4th largest foreign exchange earner in Sri Lanka behind textiles, foreign remittances and tea providing direct employment to approx 52,000 persons and indirect employment to over 73,000 persons in the country. Sri Lanka's culture, diverse attractions, beaches and its people are some of the unique features compared to other destinations, he noted. Adopting an "Out-of-the-box" approach of presenting, both speakers took turns in speaking to the audience. "When you look at other countries in the region and in the world, and compare Sri Lanka, the difference is staggering," said Cooray, referring to the enormous potential that Sri Lanka possesses in its natural resources and heritage. As President of the Tourist Hotels Association of Sri Lanka, Cooray has traveled extensively worldwide and has wide experience and knowledge of destinations both in and outside of Sri Lanka. He also noted that when regional prosperity occurs, the ultimate beneficiary will be tourism from which Sri Lanka stands to benefit immensely.

"For the last 25 years, the tourism industry has stood still," said Esufally taking over from Cooray. "Peace is the number one factor – and the tourism industry will grow at unprecedented levels," noted Esufally. Without peace, tourists will continue to come, however the high end tourists which 'we' all expect would be the first to stop. "The industry is thankful to the Tour Operators who have helped to keep the tourism industry in Sri Lanka alive" he said emphasising the important contribution made by the tour operators to Sri Lanka's tourism industry.

"The lack of clear policies with regard to tourism is one factor affecting Sri Lanka's tourism industry today," said Cooray, referring to various policies implemented by the government from time to time which ultimately affects the tourists. Restrictions and laws are most of the time applied to tourists when such laws are intended for locals, he noted.

Focusing on the promotional aspect of the tourism industry, Esufally said that "Promoting is not only about advertising". The industry needs to compete with other industries for capital and convincing investors who expect higher returns to provide capital to the tourism industry remains a difficulty task. In addition to this, the tourism industry has not been able to attract and retain employees in the industry due to markets such as Dubai attracting employees at higher salaries which the local industry cannot afford, he noted. Changing demands of consumers such as "Spas" have become a worldwide standard that require substantial investments. The speakers also noted with great pride, the important role played by employees of hotels in the island which has contributed to repeat guests visiting the island and helping to keep occupancy levels and the industry alive to a great extent. This proves that Sri Lanka has the capability to exceed customer expectations and gain an edge over other destinations in the region such as Maldives, Singapore, Thailand, etc

The Tourism Act passed in 2005 has not made much progress and implementation of the Act is yet to take place.

The Act was passed subsequent to a long-term exercise which commenced in 1990 which identified tourism as the "Vehicle of Growth" for Sri Lanka's economy. Given this situation, the industry is concerned about the lack of public sector participation in the industry, the speakers said.

Tourism Secretary Dr. Prathap Ramanujam who also attended the meeting as a guest, briefed the members about the work which the ministry was carrying out to sustain the industry although public sector participation was not as much as expected by the industry. Both presenters on behalf of the industry however acknowledged the contribution made by Ramanujam and the ministry to keep the industry alive.On a high note, the speakers emphasised that they still believe Sri Lanka is a unique destination. "We are firmly committed and stand strong with one voice in protecting, developing and promoting the industry.

Technology is driving the industry and the lack of sustainable peace in Sri Lanka has only retarded the aggressive growth of the industry," the duo said in unison.

The meeting was held at the Trans Asia Hotel, the host of the club, and was co-sponsored by Lion Brewery Ltd.