Rent-a-car industry geared to cater to boom

Local industry generates US$ 20 to 30 million:

Sanjeevi Jayasuriya

The growth momentum expected in the tourist sector would be an impetus for the rent-a-car industry development. The peaceful environment has created growth opportunities for the rent-a-car industry and with the realization of true potential in the tourist sector the industry will blossom in the near future, President of the Rent-A-Car Association Kishan Perera told Daily News Business.

The industry generates US$ 20 to 30 million annually and has the capacity to increase revenue further with the country’s economic growth.

Transport is key to develop industries and the facility provided by the rent-a-car industry is essential in this regard.

The industry generates direct and indirect job opportunities and needs to be recognized as part of the tourism wider body,” he said.

In a country where the public transport system is in the development stage, an industry of this nature could play a pivotal role. The Government should provide duty concessions and tax relief for the industry as it has potential to contribute more to the economy. The use of new vehicles to provide rent-a-car facility would minimize cost on repairs and also be environmental friendly, Perera said.

The rent-a-car industry needs to be streamlined and made popular among the corporate sector and individuals. The industry strives to maintain professionalism, best practices and standards. It also has a code of conduct for its drivers to ensure proper standards, he said.

Sri Lanka could be an industrial hub in the region and needs to set high industrial standards. The country also requires a proper road network as the growth potential in the rent-a-car industry is high.

The industry will benefit by a proper fleet management and should look in to improving its reach in the tourism sector. It is also important to educate road users on discipline, he said.

“We have an association of 11 member organizations under Rent-A-Car Association (RACA). It is a collective body representing the professional rent-a-car service providers in Sri Lanka and is committed to offer a variety of services to the public including self drive car rental services for the foreign and local tourism sector,” he said.

The association is in the process of a membership drive.

We are also in the process of sharing information in a proactive manner to curtail thefts and criminal activities to minimize the risk for the benefit of the industry, he said.