Tourism breathes fire

Just as Aldoris, the choon-paan karaya, came down the lane with music blaring from his tuk-tuk, the phone at home rang. It was the know-all neighbour Haramanis of broken English fame.

“I shay….. how are you,” he asked. “Fine, fine…..it's been a long time since we last spoke,” I replied. “Well, we met at Antonio’s grocery shop some weeks back,” he said.

“Ah yes, I remember,” I said, adding: “Anything interesting to discuss today?”

“Well, everyone is talking about the protests but another problem I have been reading in the newspapers is about a ‘fight’ between tourism associations and the head of the Sri Lanka Tourism. What is going on?” he asked.

“Various accusations have been levelled at Sri Lanka Tourism Chairperson Kimarli Fernando by the tourism associations, mainly her intransigent attitude towards the associations and their views on various aspects of tourism,” I said.

“Why are they fighting at a time when everyone should get together and work towards reviving tourism to help the country?” he asked.

“On that point I agree….…all tourism stakeholders should work together,” I said.

As we continued our discussion on the internal tourism crisis and then ended the conversation, I felt the ‘tourism clash’ had got to a point where both sides were unwilling to see reason. In fact, it got to a point where the country’s tourism associations led by the Sri Lanka Association of Inbound Tourist Operators (SLAITO) and The Hotels Association of Sri Lanka (THASL) organised a protest outside the office of Sri Lanka Tourism demanding Ms. Fernando’s removal.

Not to be outdone and in her support, an association representing tourism providers organised a demonstration at the same location, urging that she should remain as chairperson and that the controversial proposed new Tourism Act should be implemented. In the many decades of tourism, this is the first time there is a clash between the head of Sri Lanka Tourism and industry bodies.

The battle between the two sides got so ugly and personal that at one stage, Ms. Fernando accused SLAITO President Thilak Weerasinghe of ‘running away’ abroad instead of attending a meeting with her to discuss disputed issues in tourism. Mr. Weerasinghe’s daughter is married to a son of Prime Minister Mahinda Rajapaksa and Ms. Fernando (who is also a political appointee) was hinting that the SLAITO President had gone abroad with his family owing to the crisis in the country. However, Mr. Weerasinghe hit back saying he was abroad only on business and returned to the country a few days later.

Tourism has been growing, in spite of the internal turbulence (clashes between the associations and Ms. Fernando), but there was a setback in April when arrivals fell by 50 per cent compared to March arrivals. This was largely due to the anti-government protests in the country and shortages of fuel, cooking gas, essential food (milk powder) and medicines.

According to official figures, tourist arrivals in January to March 2022 totalled 285,334 compared to 9,629 in the same 2021 period, while tourism earnings were US$513.2 million in January-March 2022 compared to $25.1 million in the same 2021 period.

Arrivals in 2021 totalled 194,495 compared to 507,704 in 2020. Tourism associations, which have been seeking a meeting with the President to discuss their woes and confrontation with the Sri Lanka Tourism chairperson, have complained that there was no direction during the current economic crisis, in particular organising a steady fuel supply for tourism businesses. Another issue is the enactment of the proposed new Tourism Act which the associations complain has not taken into consideration their inputs.

The main issue in dispute in the proposed Act is that there is limited industry representation in the state institutions that come under the Act whereas the industry is currently represented in all four state institutions. The industry argues that private businesses pay a tax (tourism development levy) on each tourist arrival which is collected by the state to run Sri Lanka Tourism and as such the industry must be involved in the affairs of these four institutions including overseas promotional activity. In an April 20 letter to the President (the associations have sent many letters to Tourism Minister Prasanna Ranatunga and met him on many occasions to discuss their problems and disagreements with Ms. Fernando), the associations have raised many issues and requested a meeting with the President.

Among the issues raised (all against the chairperson) are – creating division amongst industry stakeholders and disrupting the harmony of the industry; absence of leadership and direction in a time of need when the industry is faced with a calamity; during the current fuel and power crisis, the chairperson has not taken any action to assist the industry; does not provide direction and collaborate with the industry stakeholders; changing the Tourism Act without informing the stakeholders and without incorporating the input of the industry stakeholders; formation of multiple insignificant associations that do not represent the industry’s financial contributors; and wasting tax money to retain private counsel for court cases, among other matters. Tourism is an important contributor to the foreign exchange earnings of the country and these issues need to be addressed at the level of the President to bring all sides together, though it is unlikely that due to the animosities between the two sides whether compromise is possible.

In 2018, tourism earnings peaked at $4.4 billion (compared to $4 billion in 2017) and should have come close to $5 billion in 2019 if not for the Easter Sunday attacks in April 2019 which adversely affected tourist arrivals for the rest of that year. It is the third highest forex earner after workers’ remittances and garment exports. With the advent of the COVID-19 pandemic in March 2020 (just as tourism was recovering in January 2020), the sector was affected again with the airport closure and travel restrictions.

While I was reflecting on these issues and the dispute which has turned ugly at times, my attention was drawn to the conversation under the margosa tree which was about the crisis in the country. “Mokakda ape ratata wenne (What is happening to our country),” Kussi Amma Sera asked.

“Ahara wala mila dinen dina ihala yanawa. Uhula ganna beri tharam (Food prices are going up daily and becoming unbearable),” noted Serapina.

“Virodhatha karuwan, nayakayanta kiyanne aswenna kiyala. Egollo eka karaida (The protesters want our leaders to resign. Will they do that)?” asked Mabel Rasthiyadu.

Kussi Amma Sera then walked to the kitchen and brought my second mug of tea as I wound up my column realising that the President needs to step in and resolve the current tourism impasse and bring all sides together, instead of allowing it to worsen further. However with demands to step down, tourism must be furthest on his mind.