Tourism seeks more PPP opportunities

Indunil Hewage

The local tourism industry seeks more Public and Private Partnership (PPP) opportunities to eliminate budgetary restrictions and inefficiencies in investments. Addressing a seminar on “Public - Private Partnerships in Tourism”, Sri Lanka Tourist Hotels Association Chairman Anura Lokuhetty said this is the time for the industry to adopt an intra regional development plan to sustain the industry while overcoming high carbon emission and increasing oil prices issues which are considered as main barriers for industry prosperity.

“In addition the government needs to offer attractive prices when it comes to leasing out land for tourism sector investments. At the moment, basic investments of local tourism projects are very high and preferred investors have to pay Rs 20 million for an acre land in some areas where there is a high demand for tourism. In addition, existing local hotel schools also need to be developed in a franchising model.

When it comes PPP in tourism, private sector has to play a pivotal role in professionalism improvement programmes, ecological sustainability and efficient management of investments.

“The role of the government in PPP will be adopting required policies and reforms in tourism related institutions, risk assessments, ensure transparency of industry related investments while promoting the country’s image,” Lokuhetty said.

Sri Lanka Tourism Development Authority International Relations Director Malraj Kiriella said the government has taken measures to increase the contribution of private sector investments to gross domestic product from 18 to 20 percent to 22 to 24 percent in the near future.

He said infrastructure development, human resources development, quality enhancements, visitor facilities, green practices and tourists attractive areas development will be the opportunities available for the government under PPP in the tourism industry.

The local tourism industry has over 70,000 and over 120,000 direct and indirect workforce respectively with 15,000 and 7000 rooms in the formal and informal sectors.

At present, the global tourism industry accounts for 8.8 percent of total global workforce and 5.8 percent of total global exports. In 2010, the global tourism industry recorded 935 million tourist arrivals worldwide while generating US $ 4194 billion in income.