Tourism industry perturbed over Fin Min’s comments
View(s):Amidst concerns regarding tourist arrivals for the winter season from Western Europe the tourism industry has been disappointed with the Finance Minister’s startling comments that the sector has not contributed financially to the economy.
Expressing disappointment, Past President of Sri Lanka Association of Inbound Tour Operators (SLAITO) Mahen Kariyawasam said “he (the Finance Minister) was saying we are spending the money the way we want to spend – actually that is the promotion money and it has to go through procurement procedures before it can be used.”
He noted that the Minister’s claims that the tourism industry has not contributed to the government is incorrect since “we have contributed Rs.2 billion to the Treasury from the Tourism Development Levy (TDL) and from which money was also allocated to the construction of the Jaffna airport.”
Mr. Kariyawasam said a study carried out by Ernst & Young clearly states the contribution made by the industry to the government by way of taxes, entrance fees and visa fees.
In this study it points out that the industry contributes 2.5 per cent of GDP equivalent contribution to the economy and 1.7 per cent of GDP to the economy by SLAITO members. US$2.2 billion in foreign exchange earnings have also been made to the economy by the industry, the study states.
Mr. Kariyawasam pointed out that the government is trying to ensure that the industry contribution by way of TDL can be taken directly to the Treasury by changing the present Tourism Act of 2005. In respect of these comments impacting on the industry, the stakeholders – Tourist Hotels Association, Travel Agents Association, SLAITO, Association of Small and Medium Enterprises and the Sri Lanka Association of Professional Conference, Exhibition and Event Organisers – were scheduled to meet Tourism Minister Prasanna Ranatunga on Friday.
Commenting on the budget proposals, he noted that the industry was once again disappointed that the tourism sector’s requests to reschedule loans and moratoriums had not been taken care of. However, the government had imposed a 3 per cent tax on their turnover which they believed they hoped could be waived since they are foreign exchange earners to the economy and were going through a difficult phase.
Mr. Kariyawasam also pointed out that the industry is concerned over the sudden surge in the COVID-19 outbreak in Western Europe which they believe could impact on arrivals to Sri Lanka if restrictions are placed in those markets.
However, the industry believes they could still depend on other markets like Eastern Europe and Russia and travellers coming from Kazakhstan.
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