Proper mechanism vital to realise tourist potential

by Lalin FERNANDOPULLE

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The tourism industry has not recovered since the tsunami and today it is facing one of the worst times with hotel occupancy dropping to around 40 per cent, said Vice President, Tourist Hotels Association of Sri Lanka, Amal Goonetilleke.

"The security situation in Sri Lanka is being constantly reviewed by many European countries and their travel advisories are having a negative impact on the industry," she said.

Goonetilleke said though a military solution is the last resort to solve the national problem the ill- effects of it on tourism cannot be undermined. The restrictions on travelling due to security measures is a hassle to visitors of city hotels.

Many SME sector hoteliers cannot sustain their businesses due to the drop in the number of tourist arrivals and the increase in commodity prices. The low occupancy and high energy costs have adversely affected many hotels in the South.

The Association has called upon the government to provide concessions to the SME sector hotels in the next budget. Reduction in the electricity rates and low interest repayment schemes will help the ailing industry to regain its momentum.

"A proper mechanism that will help to realise the potential of the industry is necessary.

Tourism being one the largest foreign exchange earners to the country and over one million people depending on it has to be given more recognition.

Goonetilleke said the industry will not ask for too many concessions but will expect more focus to develop the tourism industry.

Poor infrastructure is a major obstacle to develop tourism and when asked how does the industry hopes to address it, she said immediate issues such as the high cost of energy and the standard of services should be addressed.

The global financial crisis will affect the growth of the tourism industry due to the drop in long haul travelling by Europeans.

Tourist arrivals from January to September have reported a 9.5 per cent decline compared to last year.

The Latin American, East European and Middle East markets recorded a growth of 35.3, 20.3 and 10.6 per cent.

"The industry will have promotions based on a city strategy in key Indian cities to attract more tourists. SriLankan Airlines has 77 weekly flights to India. The number of Indian tourists arrivals which is around 100,000 a year declined this year.