Online travel agents up for licensing, say authorities
View(s):Sri Lanka’s tourism authorities will be introducing new regulations to register all travel agencies operating into Sri Lanka including online travel platforms.
Following the assertions from tour operators, the Sri Lanka Tourism Development Authority (SLTDA) will be introducing the relevant regulations to register all travel agencies operating into Sri Lanka including those online with a physical office in the country, the SLTDA Director General Malraj Kiriella told the Business Times on Wednesday.
He noted that according to the new gazette they would be obtaining the views of the industry and were currently involved in processing this document targeting tourism management companies – Destination Management Companies, Outbound Travel Companies, Online Travel Agencies and Meetings and Event Organisers.
It was pointed out that the new regulation would ensure that whoever does business in bringing traveLlers to Sri Lanka need to be registered.
The online booking market has grown considerably so much so that it has become a source of increased potential to attract more tourists to visit Sri Lanka.
Tour operators like NKar Travels and Tours is currently engaged in looking at more online opportunities to attract more tourists to the country.
The company’s Managing Director Nilmin Nanayakkara said that they hoped there could be a level playing field among all online tour operators.
He noted that as a Destination Management Company they were compelled to pay certain taxes which the new online tour operators that even have offices in Colombo are not being charged at present.
Mr. Nanayakkara observed that in this respect, the authorities needed to introduce a new licensing fee for these type of operators to ensure that all tour operators would be on a level playing field and would contribute to the country tourism promotion.
“As a DMC we have to pay taxes – but those based in another country don’t come under our taxation laws so therefore if the authorities look at us with a more sympathetic eye – they need to bring in some taxation format because otherwise we are not on an equal playing field,” Mr. Nanayakkara said.
Moreover, it was pointed out that currently there is a huge non tax paying segment even among the accommodation providers and hoteliers.
In this respect, it was important to place all into the taxation net by which the country on a whole will benefit.
“I see challenging times keeping up with the online travel agents,” Mr. Nanayakkara explained adding since Sri Lanka is increasingly been sought after as a destination to market, charging these agents would be worth as they would continue to promote the country.