Tourism sectors get financial boost

The Tourism SME and Micro sector says that they have received a golden opportunity to pay back some of their long standing loans through a proposed self-funding hybrid grant scheme of Rs. 41 billion (USD 135 million) from ASUIA UK backed by re-insurer, Lloyds of London and HSBC offered to Sri Lanka.

The SME and Micro sector alone still owns the Banks, leasing companies over Rs. 300 billion, said Secretary, Waasala Leisure Anuradhapura Hoteliers, Preethi De Silva.

“The grant is aimed at reviving the country’s tourism industry which has faced crisis after crisis.”

“Around 800,000 Micro and SME stake holders owe around Rs. 300 billion in loans to lending institutions and under this scheme we can apply for a loan at around 6% interest and settle part of the loans taken at around 16% plus rates.”

President of the Association of Small and Medium Enterprises in Tourism, Sri Lanka (ASMET), Bennet Jayarathna however said that the stalwarts in the industry and bid plays in the industry are blocking this stake by coming out with various excuses.”

"However we are pleased to note that President Ranil Wickremesinghe is keen to implement this."

He said though tourism insurance is not compulsory when visiting Sri Lanka, many countries have made it a visa requirement and this scheme is implemented hence Sri Lanka would not be the first country to implement a compulsory insurance scheme.”

Under this scheme, the inbound visitor insurance scheme for all non-national foreign visitors travelling to Sri Lanka is proposed to be implemented by the Ministry of Tourism. This insurance scheme will stimulate the tourism economy by securing the confidence and medical

security of foreign visitors to Sri Lanka. The scheme will also save the government medical expenses spent on foreign travelers.

The proposed scheme is a unique self-funding one, since the government does not have to pay back since it would be deducted systematically in initial term of 5 years via the insurance the tourists pay.

Another unique feature is that the insurance scheme is effective for 30 days and is valid anywhere in the world.

“This insurance scheme giving tourists can even call a helicopter for a rescue when a tourist is struck by a cliff or a mountain, call for an air ambulance evacuation as this provides rescue as aspect as well as there is sufficient funds for such a mission,” said former All Ceylon Tourism Service Providers Association, Director B. D. C. Janaka Bandaragoda.

President of the Chauffeur Tourists Guide Lecturers Association, Hirantha Perera said, As required by the tourism minister, this insurance scheme also insures local tour guides by a free insurance worth USD 4,000 and they too get the much needed insurance protection.