Tourism targets US $ 5 b FDIs

Ravi Ladduwahetty

*Industry tax structure to be simplified

*Stakeholders to resolve issues on consensus

Deputy Economic Development Minister Lakshman Yapa Abeywardena last week invited the private sector to come into public-private sector partnerships with the Government to take the tourism industry forward.

The Government has decided to invite the private sector to take the tourism industry forward more vigorously, the Deputy Minister said at the Tourism Awards - 2010 ceremony held at the Water’s Edge Hotel on Friday. The event was hosted by Sri Lanka Tourism.

The Deputy Minister commended the private sector for the resilience it showed during the war and said that the present conditions in the country are conducive to expansion and growth of the sector.

He also said that a 43 percent increase in tourist arrivals to Sri Lanka was recorded in April 2011 than during the corresponding period last year. The Asia region has shown an increase in this aspect of only 13 percent during these periods while the global increase has been a mere 5 percent.

He said that the government has made decisions to take the industry forward and has extended the present limit on land leases for hotels from 33 years to 99 years islandwide with the exception of the Kutchivelli tourism zone.

He also said that the government had decided to reject a US $ 5 million International Cricket Council grant for the promotion of tourism as it believed that it was more important to develop infrastructure and facilities for hotels rather than spending that money on promotion. “It is much more important to increase the room capacity and facilities for the industry than merely spending money on promotions,” he said.

He stressed the importance of providing Asian travellers with the same facilities provided to travellers from the West as the number of Asian travellers are increasing steadily.

The industry has already received US $ 1.2 billion in Foreign Direct Investments for the period 2005-2011 and it hopes to attract US$ 5 billion by 2016 when the industry is targeting to achieve 2.5 million tourist arrivals.

The Government, will introduce a simplified and uniform tax structure which will be different to the existing system within the next month.

He asked the private sector to bring their issues to him for discussion so that the industry can be developed on consensus.

Meanwhile, Sri Lanka Tourism Chairman Dr Nalaka Godahewa said the government is formulating a policy plan and a marketing strategy and said that it would have regulatory, policy and manpower aspects.

He also urged the private sector to be more innovative and work hard so that the 2.5 million tourist arrivals by 2016 will become a reality. “This is not difficult at all if we get our act together,” he said.

He also invited all stakeholders to work together to add value to the industry and said he hopes to have a more vibrant awards ceremony in 2012.