Business
Sri Lanka Tourism urged to advance ESG goals with the help of multilateral banks
‘Tourists are keen on reducing their carbon footprint when they travel’, say tourist chauffeur guides
by Sanath Nanayakkare
It is high time Sri Lanka Tourism Development Authority (SLTDA) showcased the seriousness of the government’s commitment to reducing greenhouse gas emissions by deploying electric vehicles (EVs) for tourist transportation, says Ranjith Sudasingha, Vice President of the Chauffeur Tourist Guide Lecturers’ Association.
“One notable way SLTDA can showcase its true commitment to the above cause is by helping our members to get EVs best suited for road trips taken by foreign visitors during their holiday in the country. By actively participating in the Environmental and Social Governance (ESG) goals, SLTDA can demonstrate its leadership in addressing environmental challenges and meeting the expectations of eco-conscious foreign visitors who want to travel in environmentally-friendly vehicles because of the positive impact it has on the environment.”
When asked whether he thought the government had the capacity to allocate foreign exchange for the importation of EVs for tourist transportation, he says,” We understand that the government can’t ask the local banks or the Treasury to provide financing to import EVs for the purpose because of its fiscal consolidation programme and tight foreign reserves management programme. However, if SLTDA is truly interested in boosting tourism revenue and thereby increase foreign inflows to the country, it needs to take the green tourist transportation initiative seriously and find a smart way to mobilize the funds.”
He points out that climate finance provided by Multilateral Development Banks (MDBs) is a key source that SLTDA can tap into. He cites MDBs such as the World Bank, ADB, European Investment Bank (EIB) and the Asian Infrastructure Investment Bank (AIIB) whose global climate finance exceeded $98 billion in 2022 for low-income and middle-income economies.
“These MDBs allocate funds for the purpose every year in line with the UN Climate Change conference (COP21) which Sri Lanka is also a signatory to. Therefore, SLTDA should be able to tap those funds and help us get EVs through soft loans at a concessional duty rate in order to facilitate emission-free tourist transportation.”
“As chauffeur guides we connect with the visiting tourists like no one else does. So we know how keen they are in reducing their carbon footprint when they travel. They come to Sri Lanka because travelling in this country is an exciting and memorable experience for them. But in the midst of all the fun, they are not ready to forget how their holiday may impact the climate.”
“Today’s discerning tourists want to see us treat Mother Nature with the respect she deserves. Nevertheless a large portion of tourist transportation comes from quite old fossil-fuel-powered vehicles and EV charging points are few and far between. This is concerning to the tourists due to its contribution to pollution and global warming. Tourists not only want to stay in green hotels but also want to see green travel integrated into the key elements of sustainable tourism. So the challenge before us is; how can Sri Lanka better meet the needs of informed travellers who demand green transportation and provide them with modern EVs for travel across the country.”
“On the other hand, with fossil fuel prices high in Sri Lanka, EVs can make a better offer for tourists to reduce their travel spending during their stay. It will help attract more and more budget tourists to Sri Lanka. You see, deploying an EV fleet for tourism transportation is not just an obligation towards Climate Change and Global Warming. It would be a smart tourism business strategy because it would appeal to a significant niche in the global tourism marketplace.”
“Currently, our Association members are paid lower than what three-wheelers charge per kilometer. This is a pathetic situation given our running costs. The Destination Management Companies (DMCs) give attractive rental rates to tourists to stay competitive in the business. We have to suffer that loss in silence. We were battered by the pandemic, the economic crisis and the long lean periods of tourism and now we have reached the end of our tether as our requests to this effect have fallen on deaf ears at the SLTDA and the Ministry of Finance.”
“Let me just sum up the whole message”, the veteran chauffeur tourist guide says,” If the authorities can help us get duty-free EVs through soft loans arranged with the MDBs, it will derive four direct benefits. No.1. It will help contribute to Sri Lanka’s emission goals for our planet. No 2. Tourists will identify Sri Lanka Tourism as a truly environmentally-conscious brand and tourist arrivals will grow significantly. No.3. Our Association will be able to sustainably provide cozy rides to tourists while delivering our service at a reasonable profit. No.4. Once such a project is in effect, Sri Lanka Tourism Promotion Bureau (SLTPB) could use a powerful marketing tagline that cuts right to the point in just 7 words; “Sri Lanka Tourism Transportation Turns to Green”.