SLAITO proposal for EU grant torpedoed by SLTDA

Rs. 760 m. goes abegging as Tourism Authority objects to monies remitted abroad

A proposal by the Sri Lanka Association for Inbound Tour Operators (SLAITO) to obtain European Union funding to revive the tourism industry in the post COVID-19 situation has been set aside, though the proposal was found to be interesting, the Association's President Mahen Kariyawasam said.

Mr Kariyawsam told the Sunday Times the association submitted the proposals after the German Chamber of Commerce informed it about the availability of funds.

The EU which had considered several proposals had been planning to provide 3.7 million Euro (about Rs 760 million) to Sri Lanka.

However, Mr Kariywasam said the Sri Lanka Tourism Development Authority had opposed the proposal by the SLAITO, and this eventually led it to set aside its proposal to promote inbound tourism.

He said the SLTDA was more focused on promoting high- end tourism while the SLAITO wanted to revive the industry by funding inbound tour operators, and it was expecting the funds to come in by next month.

Meanwhile, Frank Hess, Acting Head of the EU Delegation to Sri Lanka and the Maldives told the Sunday Times the delegation had been receiving many proposals from various organisations in Sri Lanka for tourism support.

"The SLAITO had also approached the EU Delegation with an interesting proposal to co-fund promotion activities targeting consumers in the EU with a grant from us. This proposal was also discussed with the Government of Sri Lanka. Since EU funds are limited, the EU has decided to give preference to actions with a more longterm perspective," Mr Hess said.

“The proposed funding for Sri Lankan tourism will amount to 3.7 Million Euro ( about 760 Million Rupees) and this has been discussed with the SLTDA. They have agreed to this proposal. It will focus on the SME sector with vocational training, promoting more sustainable forms of tourism, in particular wellness and wildlife and making tourism in Sri Lanka COVID19 compliant,” he said.

Meanwhile the SLTDA's Chairperson Kimali Fernando told the Sunday Times they opposed the SLAITO proposal because a part of the funds was due to be remitted to tour operators out of the country and thereby the money would go out of the country.

She said at a time when restrictions had been imposed on remitting money overseas it was difficult to agree on such proposals. She also said the EU was interested in assisting SMEs and medical tourism.

But Mr Kariyawasam said the SLTDA was concerned about the funds that would be remitted overseas. He said this was not correct, because usually when grants were offered, a foreign company too benefited from being involved in such projects.