Financial Times

Uncertainty dampens hopes of tourism boom
The tourist industry’s hopes of 2004 arrivals reaching a new record of over 600 000 visitors has been dampened by political uncertainty and possible elections, which have also put on hold several new projects. Arrivals exceeded 500,000 last year.

"Although we expect more than 600,000 tourists this year this is very doubtful due to the political uncertainty," Tourist Board chairman Paddy Withana said. "The key criteria for tourism is peace and stability, that is why we had so many arrivals last year."

Gehan Perera, president of the Sri Lanka Association for Inbound Travel Operators, said, "I think tourism will do better than last year but despite the increased numbers and the much talked about boom in the industry, not a single new hotel was constructed last year."

Talking about investment in the industry, Withana said, "There are about 20 to 30 new ventures as well as some big investments in the pipe line that have been put on hold due the uncertainty in the country."

Stressing on the need for new hotels and good infrastructure, Perera said, "Sri Lanka has enormous potential for tourism and we must harness this. “We need to get the right type of tourist in to the country so we can truly benefit. We have many two to three star hotels, but we need better hotels so we can cater to the tourist who will spend a lot." Perera said government support and political stability was required to "truly harness the potential of tourism."

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