Move to boost tourism:

Sri Lanka to set up marinas

As tourist arrivals increase, Sri Lanka is looking to setup marinas, which are sought after by high net-worth tourists.

A marina is a mini port for anchoring yachts and boats and is equipped with various boat-related services. Marinas are built adjoining an already existing port/harbour or they could be on their own.

"I am glad to record that my Ministry is willing to support marina development in Sri Lanka.

My Ministry, with industry participation, has already setup an advisory committee on boat building and has obtained allocation from the Treasury to conduct a feasibility study on setting up at boat park," Minister of Industry and Commerce Rishad Bathiudeen said "due to the leadership of President Mahinda Rajapaksa, the expansion in the economy, specifically the tourism industry has resulted in renewed interest in boating, specially the leisure and pleasure boating sector.

This creates new industry opportunities and employment. Also the barriers to this industry are steadily diminishing thereby encouraging this industry's stakeholders and new entrants.

For example, the 2012 Budget has provided the much needed relief to the export production sector and I am happy to note that our boating industry also can reap these benefits" Minister Bathiudeen added.

Minister Bathiudeen was speaking at the launch of the "Boat Show Sri Lanka 2011", and the official logo of 'Boat Show', at Ceylon Continental, Colombo recently. According to the organisers (the event is to be held from May 18-20 2012 at the BMICH, Colombo). The show is South Asia's most focused and largest international boat exhibition. Minister Bathiudeen also unveiled the official logo of the Boat Show 2012.

Boat Building in Sri Lanka is an emerging export sector that continues to expand due to the wide variety of products and services it offers to international markets. The first "Boat Show Sri Lanka" was held in 2008. The export value of boats manufactured in Sri Lanka doubled in 2009 to $58m from $22m in 2008.

In 2010, the value of boat exports was $64m and up to August 2011 it has almost doubled reaching $124m which I believe is a very promising growth rate for any industry in the country.

Minister Bathiudeen said: "This event comes at an important time as our boating industry is recording a very promising 100 percent annual growth rate from 2008 onwards. In other words, our boating industry values have been doubling almost every year. The export value of boats manufactured in Sri Lanka doubled in 2009 to $58m.

In 2010 the value of boat exports was $64m and upto August 2011 it has almost doubled reaching $124m which I believe is a very promising growth rate for any industry in the country.

To further develop our industry, one of the prominent development areas would be to create marinas and boat parks which will attract Sri Lankans to own boats thereby creating new growth. The marinas can provide space for boat manufacturing units and boat launching facilities too thereby significantly enhancing our boat production process. My Ministry together with the EDB has identified that boat manufacturing to be a sector with enormous potential. With this in mind, the Ministry has joined hands with the Boat Building Technology Improvement Institute to organise and promote the event."

Sri Lanka produces vessels for oceanic channels as well as for inland waterways and boat hulls are made out of composite material such as FRP, aluminium and steel.

Among the great variety of products are luxury sailing and motor boats, pleasure and leisure boats, specialised boats such as fisheries research vessels and innovative new products such as house boats and floating restaurants.

Its industry is also being strengthened by both pre-production and post-production services which have high potential to become significant sub-sectors of their own. "Let us not forget that the boat and ship-building industry is also supported by a dynamic and burgeoning ship repair industry.

Our vessels and specialised services are readily purchased by many countries including the USA, UK, Norway, Sweden, Holland, France, Iran, UAE, Yemen, and Somalia, to name a few," Minister Bathiudeen said.

Speaking of the Boat Show, Minister Bathiudeen said: "I am given to understand that the institute's 2010 international show held here attracted more than 8000 visitors with many sales inquiries and I am confident that the 2011 show could attract even more.

I am also confident the success of this series of boat shows does imply that a strong platform for all the related business sectors that are directly and indirectly involved in the boating industry is emerging. In that I am also confident that Sri Lanka can soon provide a forum and a platform for not only the local boat building industry but even for the South Asian region if the growth momentum is not stalled."

Highlighting Sri Lanka's capacity in this sector, Minister Bathiudeen said: "As you may already be aware, Sri Lanka has a long and a proud history of boat-building, supported by an intricate and rapidly advancing transportation and logistics network.

I believe that among other factors, Sri Lanka's strategic location, highly trained workforce and low cost labour advantage also indicate that the country is equipped to become a reputed centre, if not a hub in itself, for boat manufacturing in the South Asian region soon. Sri Lanka also has one of the best natural harbours in the world and its historic Colombo port is rated among the most economical ports, other helpful factors in this direction.

With President Mahinda Rajapaksa's leadership, the expansion in economy and specifically, tourism industry expansion, have also resulted in renewed interest in boating, specially the leisure and pleasure boating sector.

This creates new industry opportunities and employment.

Also the barriers to this industry are steadily diminishing thereby encouraging this industry stakeholders further. For example, the 2012 budget has provided the much needed relief to the export production sector and I am happy to note that our boating industry can reap these benefits," he said.