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| Sunday, 15 May 2005 |
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| News Business Features Editorial
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Tourist arrivals back to normal in October by Ranga Jayasuriya Tourism is one industry worst hit by the December 26 tsunami with damage being estimated at 25 billion rupees. A Tourism Resort Zoning Plan is formulated and is in progress to rehabilitate and rebuild 15 towns and improve housing and infrastructure facilities. Tourism Marketing Recovery Programme was initiated with a US$5.3 million budget. Out of 242 hotels in operation with 14,100 room capacity before the Boxing day catastrophe, 84 hotels were damaged which put 3,553 rooms out of operation. Seventy per cent drop in tourist arrivals was reported in the first two months since tsunami. The magnitude of the damage is high for the fact that the industry was hit at a time it was expecting the highest ever tourist arrival. To assist rebuild the damaged hotels and restaurants, a concessionary loan scheme, Susahana, provides loans up to 10 million rupees with no repayment in the first year. A waiver on import duty is provided for the refurbishment of hotels. Actions have also been taken to replace damaged tourist vehicles and coaches. It is expected that tourist arrivals will pick up October this year, however the industry would be forced to run short of room capacity given the extend of the damage. |
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