Travel trade commends Budget 2011

Travel trade people from the Eastern Province commend the Budget proposals presented by President Mahinda Rajapaksa as a positive step forward. Arugambay Travels and Tours Managing Director A M Jaufer said the envisaged increase in tourist arrivals to 2.5 million by 2016 is a target that can be achieved with the support of the Government.

The budget has proposed several incentives to the industry including the tax reduction on income generated from tourism business from 15 percent to 12 percent, a 25 percent reduction of tax on passenger vehicles.

Construction of hotel rooms to triple the present capacity of 15,000 within the next few years will also generate employment to rural youth in the areas to be developed.

He also applauded the proposal of refurbishing Government circuit bungalows and rest houses in support of local tourism.

The non availability of good accommodation at affordable prices in the East has been a major hindrance to local tourists visiting the area.

The few government bungalows and rest houses operated in the area were either demolished or have become non operational due to the situation prevailed in the area during the war.

He said refurbishing the government bungalows and rest houses will cater to the needs of the local tourists visiting the East.