Hoteliers want more control over promotion funds

The hoteliers have proposed for reforms at the Sri Lanka Tourism Promotion Bureau and a transfer of control of promotions fund to the Tourism Joint Council as part of a public private partnership.

Sri Lanka Tourist Hotels Association President Sanath Ukwatte addressing hoteliers at the 54th anniversary of the association on October 23 in Colombo stated, “We propose to reform the Promotions Bureau and to transfer the control of the promotions fund to the Tourism Joint Council in a bold, new and ambitious public-private partnership”.

He pointed out that over the years the promotions fund had monies accumulated that was not utilised for the launch of the key global campaign as a result of which “we lose potential tourists, potential revenue streams and potential investments.”

The said Joint Council is expected to represent all actors in the tourism industry that directly impacted by consecutive government failures in launching a promotion campaign.

“A fund that has remained idle in government hands for a decade is evidence that these monies are better off in the hands of those who contribute towards it and are directly impacted by how such money is used,” he said.

Mr. Ukwatte explained that with many countries handing over the control of tourism promotion funds to the private sector a similar situation should be created for the tourism industry as well as they fund the promotions.

In this respect, they called for an amendment to the Tourism Act that would allow for a complete control of the promotion funds to the Tourism Joint Council; and impose enhanced reporting obligations to the Promotions Bureau and the Tourism Development Authority to ensure transparency and accountability to utilise the promotions fund.

The THASL President also commended the government for their decision to support the industry by lowering VAT to 7 per cent for the tourism industry.

He also asked the government to ensure that all receipts by the hotel industry be made exempt of NBT; or to liberalise the monetary law to ensure payments in foreign currencies in order to fully benefit from the NBT exemption.

In a bid to overcome some of the future risks the industry was likely to face, Mr. Ukwatte noted that the “bold, new and progressive tourism master plan” is required to avoid or manage and address those risks when they arise. (SD)