Getting out of UK and EU red lists on Covid-free status seen as vital to save SL’s tourism industry

By Hiran H.Senewiratne

Sri Lanka should do everything possible to obtain UK and European Union countries’ confirmation as a Covid 19 free tourist destination. Getting out of their red lists is vital. At present, the country is facing the risk of losing its highly efficient and knowledgeable tourism-linked workforce, a top tourism expert said.

“Currently, the tourism sector workforce comprises more than half a million. This segment of workers accounts for 11 percent of the total workforce in the country. But tourism is considered the worst hit segment in the country owing to this global pandemic. Due to that the government should try to get out of the red lists of the UK and EU regarding its Covid-free status. It must be considered that tourism brings the highest foreign exchange into the country, former vice president, Ceylon Hotel School Graduates Association (CHSGA) Chandana Amaradasa told The Island Financial Review yesterday.

Amaradasa said that in 2018 amid all difficulties Sri Lanka received 2.8 million tourists into the country and the foreign revenue that year was US $ 4 billion. It is said that more than 2.5 million persons directly and indirectly depend on the tourism industry, he said.

Amaradasa added: “The government should introduce a wage support scheme/system for tourism employees to protect them and prevent the exodus from the industry of such workers. Some hotels have downsized their staff and some workers are experiencing huge wage cuts. If the government does not come up with a practical solution, the younger generation will never enter to this sector, in the future.

“At present there is a 22500 registered room capacity in Sri Lanka. Of this 90 percent belongs to the SME sector. Out of that 90 percent, 90 percent is run by Sri Lankan entrepreneurs.

“Because of the pandemic situation, investors in the tourism sector are in deep trouble and are struggling to find ways and means for servicing their debt. Due to this, the entire hotel sector, tour operators, travel agents, transport providers, the shop and entertainment sector and airlines have been affected.

“Further, many hotels have to pay heavy bank loans. An interest waive off would give them some breathing space. The Rs. 4 billion tourism cess fund could be utilised to salvage the tourism sector.

“The UK and EU markets bring high spending tourists to Sri Lanka. Therefore, to protect the industry the government should expedite getting out of the relevant red lists and promote Sri Lanka tourism through travel agents and other related institutions.

“In 2019, the contribution of travel and tourism to the GDP of Sri Lanka was 12.6 per cent. This quantum increased from 6 percent in 2000 to 12.6 percent in 2019, growing at an average annual rate of 4.28 per cent.”