How to spend EU grant of € 3.5mn: Tourism Authority and Tour Operators not travelling together

A difference of opinion has arisen between tour operators and the Sri Lanka Tourism Development Authority ( SLTDA) on how to spend a European Union (EU) grant of 3.5mn euros (Rs 714mn).

Inbound tour operators want the money invested on an aggressive, Europe- wide promotion campaign, targeting tourists who will be ready to travel post-pandemic. They feel Sri Lanka must secure a head start against other Asian destinations such as Vietnam, Malaysia, etc, that will be fighting for the same market. And they propose that the campaign is carried out with the domestic private sector in collaboration with its foreign partners and SLTDA.

But the SLTDA envisages using the money, among other things, to devise an insurance scheme for tour guides, to provide financial assistance to tourism workers who have been laid off and to train guest house owners and managers to improve tourism management, authoritative sources said.

The EU, meanwhile, has provided the SLTDA with three criteria on which to base their suggestions. Tourism Minister Prasanna Ranatunga has advised the Authority to take proposals from industry actors and submit a single document to be forwarded to the EU.

“We have asked for a single proposal,” Minister Ranatunga said. “Any industry actors must make their recommendations to the SLTDA which will produce the final document. Since this is a grant to the Sri Lankan Government, the proposal must be put forward through that channel.”

Tour operators also met Minister Ranatunga and expressed their views. They are in the process of drafting their ideas, a source said, requesting anonymity. “The grant was for tourism development,” he pointed out. “And the need of the hour is to survive. For that we need to advertise and promote the destination so that we get tourists.”

“COVID won’t last forever and when things change, we have to be ready,” he continued. “There will be a big competition to attract tourists with Asian countries coming up with a lot of promotional activity.”

SLTDA Chairperson Kirmali Fernando was not available for comment.