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Tourism Sector Congratulates New President, Urges Immediate Reforms to Boost Industry Growth

September 25, Colombo (LNW): The Hotels Association of Sri Lanka (THASL) and the Sri Lanka Association of Inbound Tour Operators (SLAITO), representing the formal hotel sector and inbound tourism, have congratulated Anura Kumara Dissanayake on his election as the 9th Executive President of Sri Lanka. 

In a joint statement, the organizations expressed their confidence in the new leadership and pledged their full support to advance the country’s economic growth.

Tourism, a major driver of Sri Lanka’s economy, is recognized as the top net foreign exchange earner, with 100% of foreign income retained locally. 

It has a unique multiplier effect, benefiting even the smallest stakeholders, such as micro-level restaurant and homestay operators. The industry is estimated to support more than 500,000 direct and indirect jobs, with over 10% of the population relying on tourism for their livelihood.

With a projected potential to grow into a $10 billion industry by 2030, tourism is a critical sector for Sri Lanka. The hotel industry alone represents private investments exceeding $20 billion, while inbound tour operators contribute significantly, bringing in around 65% of tourists and investing Rs. 3 billion annually to promote the destination internationally.

THASL and SLAITO emphasized the private sector’s contribution to tourism promotion through a 1% turnover contribution to the Tourism Development Fund, which supports public tourism institutions and marketing efforts without burdening the treasury. However, they also noted that tourism is highly sensitive to internal and external factors, which can quickly disrupt its growth.

The associations highlighted two key issues hampering the industry’s current performance: a recent decline in tourist arrivals and forward bookings. They attributed this downturn to the removal of an efficient online visa system, replaced by a more complex and costly process on April 17, 2024. The Supreme Court had ordered the reinstatement of the original Electronic Travel Authorization (ETA) system, but the ruling had yet to be implemented.

 Additionally, stakeholders called for the immediate launch of a promotional campaign, originally scheduled for early September 2024. They emphasized that September is a critical period for securing bookings for the upcoming winter season, and the campaign’s timely rollout would enhance global awareness of Sri Lanka as a tourist destination.

In their closing remarks, THASL and SLAITO urged the President to prioritize tourism as a key sector for national development. They requested his intervention to reinstate the user-friendly ETA system and ensure the promotional campaign proceeds as planned. Both actions, they argued, would unlock the full potential of the upcoming tourist season and drive long-term growth.

The associations reaffirmed their commitment to supporting the government in achieving inclusive growth and developing a thriving tourism industry that benefits stakeholders at all levels.’

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