The adverse media reports on the country’s safety and security which dissuades travelers to visit the country aggravates the plight of the tourism industry which is in dire straits, said Past Sri Lanka Association of Inbound Operators ( SLAITO) President Thilak Weerasinghe.
The cancellation of booking and tours due to the negative media reports has only worsened the crisis for many industry stakeholders who are unable to service loans due to the drastic decline in revenue since March this year, Weerasinghe said.
In response to the appeal from the authorities for an extension of the grace period by the tourism industry the government told borrowers last week to negotiate with the particular bank on the moratorium and seek relief with the lender.
However, The Hotels Association of Sri Lanka (THASL), Sri Lanka Association of Inbound Operators ( SLAITO) and the Association of Small and Medium Enterprises (ASMET) at a media briefing last week urged the authorities not to ignore the tourism industry which is the second largest forex earner at a crucial time when the industry needs help.
The stakeholders of the tourism industry which brought in forex of USD. 4.5 billion in 2018 and has the potential to earn around USD 1 billion this year cannot understand the rationale for sidelining the industry at a crucial time when it needs attention the most.
The officials of the industry bodies also called on the media to play a key role in conveying positive messages to the travel community about the country.
“We need to be positive and always hopeful of better times. There are a lot of good things happening despite the doom and gloom,” Cooray said.
Tourists are not so much bothered about who rules and the internal issues of the destination they travel to but too many negative stories could scare travelers who would want a safer destination, he said.
The industry officials while thanking the authorities for supporting the industry in the past with concessions requested the Government to extend the moratorium at least by another six months.
The moratorium for the industry ended on June 30.
The industry provides over 500,000 direct and indirect employment opportunities and generates between USD 4-5 billion in foreign exchange to survive.
The tourism industry brought in forex to the tune of around USD 4.5 billion in 2018, the best year for the industry in terms of income generation.
THASL Past President Anura Lokuhetty said the industry not only just bringing in the much needed forex to the country but also has benefits that filters down to grass-root levels where the guide, tuk drivers, jeep drivers, gem and jewelry, handicraft sellers, fishmongers vegetable and thambili sellers etc benefit immensely with the arrival of every tourist to the country.
SLAITO Past President Nilmin Nanayakkara said the revenue earned from the informal sector of homestays are not tracked in the Government data analysis, he said.
However, the industry estimates that this sector contributes at minimum an additional 10% to the tourism earnings to the country. What requires to be recognized is a fact that all forex earnings from Tourism remains in Sri Lanka as The industry does not import raw material and has no paybacks.
The travel and leisure industry rebounded with the opening of the airports in September 2021 and started generating revenue since then with an income of around USD 400 million within the first three months this year.
The exposure of the hotel sector in the banking sector is in the mid single digit level while ist contribution to the GDP is around 12.5 percent far above the banking sector, Hettigoda said, adding that the estimated debt including the accumulated interest now is estimated to be over Rs. 500 billion.